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REX downgrades profit guidance

written by australianaviation.com.au | November 28, 2012
REX remains at loggerheads with the government, saying its policies have caused the profit downgrade. (Seth Jaworski)

Regional Express Holdings (REX) has downgraded its profit guidance for the current financial year to between 25 and 35 per cent lower than its 2011/12 $35.1 million profit before tax.  Its previous guidance was between 15 and 25 per cent lower.

REX chief operating officer Garry Filmer said: “As foreshadowed in our earlier warnings, the government’s slew of draconian measures at the start of this financial year is having its expected impact on the general economy which in turn is hurting regional aviation badly.”

The forecast comes after the REX chairman last week slammed the possibility of a relaxation of the ‘regional ring fence’ at Sydney Airport, which protects 40 per cent of slots for regional operations.

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At this week’s annual general meeting the Regional Express board declared a fully franked dividend of nine cents per share, a 26.8 per cent increase over the previous year.

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