REX eyes off $35m loss for FY2023

REX eyes off $35m loss for FY2023

Interim guidance issued to the ASX on Tuesday brings and end to a horror financial year for REX airlines, who are expected to post a lost of $35 million in the year to June 30.

REX has made clear the issues it currently faces with pilot and skilled worker shortages.

In May, the Airline made cuts to nine routes through regional Australia and suspended a number of others.

“These adjustments are necessitated by the chronic shortage of airline professionals, particularly pilots and engineers, as well as the severe disruption in the supply chain of aircraft and parts,” GM network strategy, Warwick Lodge said at the time.

It seems the strategy made little difference as the Australian reported on Monday that around one third of the airlines regional fleet consisting of Saab 340’s was out currently out of action due to a lack of skilled workers.

Executive chairman, Lim Kim Hai released a brief statement saying the expected operational profit had been revised.

“The global shortage of pilots and engineers, along with supply chain shocks post-COVID have disrupted REX’s network,” Hai, said.

“(These have) forced REX to make significant reductions to its flight schedules over the last couple of months to match the need for aircraft, pilots and engineers to what is available.”

As recent as March this year, REX announced it was expecting to be profitable for 3Q23, though when it comes, Mr Hai still has high hopes for the back end of the year.

“REX remains optimistic for its outlook on a group operational profit tax for the 2024 financial year and beyond, with the continued expansion of its domestic jet operations, he said.

REX shares last traded at $1.21, a far call from the high of $2.06 in late 202 when the airlines announced plans to expand on its routes to major cities thanks to Asian-based investment firm, PAG.

 

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