Regional Express Holdings has recorded a 7.2 per cent increase in profit after tax, with the aviation group aided by an increase in charter services and the government’s stimulus incentives.
The group, which also includes its subsidiaries Pel-Air, Air Link and the Australian Airline Pilot Academy, achieved a new record with its profit after tax coming in at of $24.6 million, one million dollars higher than its previous record. Passenger revenue over the year was down 5.4 per cent to $193.2 million, while total revenue was down 8.5 per cent to $229.7 million. Passenger numbers were down five per cent to 1.238 million, while load factor declined by 4.2 percentage points to 61.9 per cent.
“Fortunately, through sound financial management, Rex was able to take full advantage of all the fiscal initiatives put in place by the government to assist the economy,” said Rex chairman Lim Kim Hai. “Together with efficiency gains and careful attention to costs, we were able to overcome the deficit of revenue to achieve a very satisfactory outcome.
Lim added that the profit was “all the more satisfying” given that Qantas’s recent profit announcement showed that the total Qantas branded flying operations posted underlying profit before tax of $60 million.
Rex declined to provide a profit outlook for the year ahead, citing volatility in fuel prices, passenger demand and exchange rates. It added that the focus for the next year would be on consolidating its passenger network and improving load factors, while Pel-Air would increase its focus on the fly-in/fly-out charter market.