Rex points finger as profits tumble

Rex points finger as profits tumble
By admin


Regional Express has blamed "draconian government policies" for a tough first half as pre-tax profits slumped 32.6% to $12.5 million.

The carrier said the result reflects the "catastrophic impact" of the carbon tax on an already fragile economy with passenger numbers showing a significant decline.

"Many regional carriers are now struggling for survival. If the government does not reverse tack very soon, we will see irreversible damage," Rex executive chairman Lim Kim Hai said.

The airline intends to lobby the government and the opposition on crucial policies with the aid of the Regional Airline Association of Australia.

"Besides the carbon tax and consistently high fuel prices, it was also the onslaught of government fiscal and regulatory measures which resulted in the steep decline we see today," Hai said.

Rex said the second half will see a "further degradation" of profits with FY13 results likely to be between 35% and 40% below the previous year.

Latest News