Regional Express (Rex) has suffered another full-year loss, but the negative result wasn’t quite as bad for investors this time around.
The airline posted a statutory net loss after tax of $4.9 million in the 12 months to 30 June 2021, which is much less than the $19.4 million loss in FY20.
Total revenue fell 20 per cent FY21 to $256.2 million, while Rex’s passenger numbers fell 29 per cent.
Lim Kim Hai, executive chairman of Rex, said the airline performed “relatively well” in a full year of operations under the COVID-19 pandemic.
“I am pleased that we have even managed to improve on our performance over the prior year, which was only affected by COVID for a third of the year,” he said.
“The first half of the FY22 will continue to be dominated by rolling lockdowns and border closures.
“It is possible that the second half will be struck by further waves of infection given the experience of other highly-vaccinated countries. As such the outlook for the year is highly uncertain.
“On behalf of the entire passenger airline industry in Australia, I wish to put on record our vote of gratitude to the federal government without whose assistance all passenger airlines in Australia would certainly have entered administration.
“Its continued support whenever new crisis hit the industry will ensure that all the airlines would have their infrastructure intact to be ready for the recovery when it comes.”
A day after revealing its full-year results, Rex announced that, due to the ongoing uncertainty around when border restrictions in NSW and Victoria will lift, the airline was “left with no option” but to extend the suspension of its domestic services and reduction of its regional services up until 10 October 2021 to provide some time for the advanced sale of tickets.
“This will also mean an extension of the stand-down period for staff,” Rex said in a statement.
“It was originally anticipated that stand-downs would be at least until 12 September 2021. However, current conditions now deem it necessary for stand-downs to continue until at least 10 October 2021.
“The Rex board and management committee remain optimistic that demand for travel will be strong post lockdowns and border closures. We are committed to ensuring Rex remains agile and ready to respond when flying resumes.”
Featured image source: iStock/Ryan Fletcher