Air Pacific has returned to profitability on the back of a rise in passenger numbers, with the Fiji-based carrier holding its own against bigger rivals Virgin Australia and Jetstar.

Operating profit for the 12 months to March 31 came in at $FJ16.5 million ($A9.1 million), Air Pacific said on Monday.

The result was a sharp turnaround from a $FJ3.7 million ($A2 million) operating loss in the prior year and achieved despite high fuel costs, which chief executive Dave Pflieger said had gone up about $FJ94 million ($A51.4 million) in two years.

Air Pacific carried 85,000 more passengers in fiscal 2012 compared with a year earlier.

Mr Pflieger said airline was doing a better job keeping its flights full during the quiet months through better marketing and advertising campaigns.

At the same time, Air Pacific was able to improve yields – an industry term describing average airfares per passenger – at popular travel times while battling against low-cost-carriers (LCC) operating between Australia and Fiji.

Mr Pflieger said Air Pacific, which is 46 per cent owned by Qantas Airways, was making good progress on its turnaround plan.

“To turn the airline around when fuel goes that high and to get profits, revenue and passengers up in spite of the fact for the first time in our history two LCCs in our back yard is not bad,” Mr Pflieger said.

“To have been able to not just survive that but actually able to restructure and rebuild the airline for a bright future ahead is I think pretty impressive.”

In 2013, the airline will revert to its previous name Fiji Airways in a bid to more closely associate itself with the tourist hotspot.

The name change would coincide with the arrival of the first of three new Airbus A330-200 aircraft in March 2013.