Rex reveals increased profitability

Ahead of its AGM this afternoon, Rex Airlines has revealed a $2 million before-tax profit for the month of October.

The airline’s unaudited management accounts for October showed a significant increase on last month’s slight profitability, which marked the airline’s return to profitability for the first time since resuming operations in February.

Its regional Saab operations are still loss-making for October, but its EBITDAR was a positive $1 million for the month, having been EBITDAR positive since September.

The Company believes that the regional Saab operations will return to monthly profitability by Q3 of FY23.

The board of Rex will reaffirm its expectations that the group will make up for the accumulated losses incurred in the first 4 months of the financial year to emerge overall profitable for the entire FY23.

For the first three months of this financial year, Rex’s domestic jet network passenger numbers grew by 60 per cent, 34 per cent and 77 per cent respectively when compared to June 2022.

Revenue growth has been even stronger at 84 per cent, 47 per cent, and 137 per cent for the same three months, suggesting significant yield improvements, according to Rex executive chairman, Lim Kim Hai.

“The Board gave guidance on 2 August 2022 that it expected FY 2023 to be profitable overall and the current results have further strengthened its conviction,” Kim Hai said.

“Encouragingly, October 2022 appears to be even stronger than September 2022, with passenger numbers on the jet network 16 per cent higher for the first half of the month when compared with the previous month while revenue increased 35 per cent on 13 per cent more flying.”

Image source: iStock/Ryan Fletcher