Rex ‚Äúhumbled” but future rocky

Rex ‚Äúhumbled” but future rocky
By admin


Regional Express has adopted the tag as “the most profitable listed airline in Australia” after posting a record pre-tax profit of $35.1 million – but the outlook is not so bright.

Executive chairman Lim Kim Hai reeled off a list of airlines that have struggled this year and said he was “humbled” at achieving such a result.

“Even as almost every blue ribbon legacy airline in the world, be it Singapore Airlines, Air France, Lufthansa, Emirates or Qantas reported profits plunging more than 60% or even losses, I feel humbled and blessed that Rex was able to increase its profits by 45.6% to end the financial year with a record profit.”

The result was largely down to Pel Air/Air Link results, he added, with a “marked increase” in fly in fly our traffic

But Lim immediately warned the current financial year “would not be as rosy”, particularly with the a “triple whammy of carbon tax, additional security charges and the removal of the Enroute Rebate Scheme”.

While Lim said the airline “can survive the cataclysmic period ahead”, the combined effect will cost Rex $4m to $5m with the airline expecting profits to fall 15% to 20% this year.

Looming economic hardship will also play its role in hitting demand, he said.

Total revenue for the 12 months to June 30 climbed 14.5% to $273.1m with passenger revenue rising 6.7% to $214.8m.

Fuel costs increased 14.4% to $38.6m.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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