Regional Express Holdings Ltd (Rex) has announced its half-yearly results for the first six months of the 2022/23 financial year (1HFY23) with an after-tax loss of AUD$16.5M, representing a 55 per cent lift against the previous corresponding period.
While the results are due to regional performance, Rex Executive Chairman Lim Kim Hai noted that the airline’s domestic jet services return to monthly profitability in such a short time was “unprecedented”.
The loss includes a negative impact of AUD$23 million, which was due to an increase in the value of Rex shares.
Rex reported an operating loss after tax for the period at AUD$1.9M however, cash in the bank for the airline almost doubled compared to the prior period.
Rex is optimistic that the Group will have positive operating profits for the full FY23 period, barring any further external shocks.
The regional carrier celebrated its domestic jet services return to monthly profitability in September 2022, just seven months after the full resumption of domestic services.
Rex’s domestic operations also achieved four consecutive months of consistent growth.
Rex Executive Chairman Lim Kim Hai said: “The results are pleasing considering that domestic jet services only really operated in a relatively COVID-free environment since late February 2022.”
“To achieve profitability in such a short period under a normal environment is fairly unprecedented in the world.”
Regional operations had been a drag on the Group’s performance due to Qantas entering routes that are too small to support two operators.
Nevertheless, regional services have been positive at EBITDA (earnings before interest, taxes, depreciation and amortisation) level for the last four months of the period and are expected to return to monthly profitability in Q3FY23.
The Group has also celebrated numerous milestones, including its 20th anniversary and the purchase of National Jet Express (NJE), formerly known as Cobham Aviation Services Australia – Regional Services.
Rex also just announced the lease of two more Boeing 737-800NGs by the beginning of the next financial year.
The full potential of partnership agreements with major travel agency groups, higher revenue from expanded operations and higher cadet intake at pilot academies are expected to further contribute to the Group’s performance in the second half of FY23.
For the full Regional Express Holdings Ltd (Rex) results, head here.
For more info, head to rex.com.au
