Rex posts a $13.3m turnaround for 1H24, but still at a loss

Rex posts a $13.3m turnaround for 1H24, but still at a loss
Edited by Travel Weekly

    Regional Express Holdings Limited (Rex) announced a statutory after-tax loss of $3.2m for the first first half of the 2024 financial year.

    This is a significant improvement compared to the $16.5m after-tax loss in the prior corresponding period.

    Rex’s revenue for the period was $353m representing a 6.3 per cent improvement compared to the same period last year.

    Rex’s joint venture National Jet Express (NJE) continued to expand its customer base securing seven new contracts in the period resulting in revenue growth of 15 per cent to $119m. NJE launched its seventh charter destination in Queensland in eight months from its commencement of operations there. This is a testimony to the high demand for NJE’s premium air services in the resource sector.

    Rex foresees revenue growth for the full financial year compared to the prior period because of expected improvements in all its subsidiaries. However, escalating costs, especially fuel, would make it difficult to predict the full year’s profitability.

    Earlier this year, Rex announced that it was extending its regional network reductions due to continuing dislocated supply chains post COVID.

    In making the announcement, Rex’s GM of network strategy, Warrick Lodge, took aim at airlines selling tickets on flights that it new it was going to cancel.

    “As we have stated previously, Rex prefers to reduce services if it does not have the resources to fly them rather than continue to sell tickets for phantom flights and then cancelling them at the last minute,” Lodge explained.

    “Rex finds such deliberate last-minute cancellations to be unconscionable as a cancelled flight can bring about untold hardships to the affected parties including having money tied down for months if indeed the refunds materialise.”

    “Rex never cancels a flight last-minute for expediency or for cash flow purposes or to hoard airport slots and this explains why Rex’s cancellation rate is 600 per cent to 1,000 per cent lower than its two larger competitors.

    “Rex is committed to the rebuilding of its regional network and intends to return to the standard flight schedules from 27 October 2024, subject to the situation improving.”

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