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Rex posts lower profit

written by WOFA | May 26, 2010
photo - Paul Sadler
photo - Paul Sadler

Regional Express Holdings has announced its third quarter profit, which came in 41 per cent lower than the equivalent period last year.

The aviation group, which includes the Rex airline, Air-Link, Pel-Air and the Australian Airline Pilot Academy, recorded an unaudited profit before tax of $4.4 million, down significantly from the $7.5 million it recorded last year. Total revenue for the group declined by $3.3 million to $53.7 million, despite a small increase in passenger revenue, while fuel costs were up by $0.2 million to $7.0 million. Operationally, Rex’s load factor decreased by 1.8 points to 61.4 per cent as capacity increased by 3.3 per cent over the three month period.

In its presentation to investors, the company noted that there were a number of opportunities coming up during the fourth quarter of the year, with the delivery of its last two Saab 340B+ aircraft, four Beechcraft B200Cs to service an Ambulance Victoria contract, as well as tendering for an NT aeromedical service contract.

Overall, the airline says that it expects profit after tax for the full year to be largely static compared to last year, coming in between $21.5 and $23 million. Rex recorded a $23 million profit for the last financial year.


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