Rex has reported a Profit Before Tax for its domestic jet operations of about $2 million for October 2022. The announcement follows the slight profitability registered by the airline in September, which was also the first time its jet operations reported a profit.
In its Annual General Meeting shareholder presentation, Rex revealed the unaudited management accounts for October’s domestic jet operations reported a Profit Before Tax of about $2 million.
Rex announced a return to profitability in September 2022 for the first time since the domestic carrier resumed operations in February this year after shutdowns due to COVID-19 border restrictions in 2021.
The news also reflects the current upward profitability trajectory experienced by other domestic airlines due to increased travel demand.
Consumer domestic leisure travel demand, high airfare prices, low capacity and high fuel costs are considered to be behind the profitability boom.
Rex noted that its regional SAAB operations were still operating at a loss for October, but its EBITDAR (earnings before interest, taxes, depreciation, amortisation and restructuring or rent costs) was a positive $1 million for the month.
The Group believes its regional Saab operations will return to monthly profitability by the third quarter of FY 2023.
The Rex Board also expects that the Group will make up for the accumulated losses incurred in the first four months of this financial year to emerge profitably overall for the entire 2023 financial year.
To find out more, visit rex.com.au
