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Rex reports first half profit lift

written by australianaviation.com.au | February 24, 2015

A Regional Express (Rex) Saab 340 aircraft.

Regional Express (Rex) has posted an 8.3 per cent lift in first half net profit and says the outlook for the rest of 2014/15 is moderately positive despite uncertain passenger demand.

The company reported net profit of $3.9 million for the six months to December 31 2014, an increase of $0.3 million from $3.6 million in the the prior corresponding period.

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Revenue rose 0.4 per cent to $129.8 million.

Rex chief financial officer Neville Howell said the outlook was uncertain, given passenger numbers softened at the start of the second half and lower oil prices could have a negative impact on the resources sector.

On a positive note, Rex said the initial weeks of its Queensland government route contracts that started on January 1 2015 – the regional carrier won five contracts, up from three previously, at the most recent tender held in 2014 – showed the new routes were performing well.

Also, the lower fuel prices were expected to result in a $2 million saving for the full 2014/15 year. Fuel was 14.7 per cent of Rex’s total costs in the first half of 2014/15, compared with 16.8 per cent in the prior corresponding period. The 2013/14 figure included the impact of the carbon tax, Rex said.

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“The board remains optimistic that the net result of the headwinds and tailwinds will still be moderately positive for the Group and is committed to paying a final dividend if this materialises,” Howell said in a statement.

Rex cut some routes in regional NSW in September in a bid to stem losses on some marginal routes.

No dividend was declared.

However, Rex said in a slide presentation accompanying the first half results the board was committed to paying a full year dividend if the profit outlook was realised.

Rex shares closed Tuesday’s training day down 9.5 cents, or 8.84 per cent at 98 cents.

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Rex reports first half profit lift

written by australianaviation.com.au | February 24, 2015

A Regional Express (Rex) Saab 340 aircraft.

Regional Express (Rex) has posted an 8.3 per cent lift in first half net profit and says the outlook for the rest of 2014/15 is moderately positive despite uncertain passenger demand.

The company reported net profit of $3.9 million for the six months to December 31 2014, an increase of $0.3 million from $3.6 million in the the prior corresponding period.

Advertisement
Advertisement

Revenue rose 0.4 per cent to $129.8 million.

Rex chief financial officer Neville Howell said the outlook was uncertain, given passenger numbers softened at the start of the second half and lower oil prices could have a negative impact on the resources sector.

On a positive note, Rex said the initial weeks of its Queensland government route contracts that started on January 1 2015 – the regional carrier won five contracts, up from three previously, at the most recent tender held in 2014 – showed the new routes were performing well.

Also, the lower fuel prices were expected to result in a $2 million saving for the full 2014/15 year. Fuel was 14.7 per cent of Rex’s total costs in the first half of 2014/15, compared with 16.8 per cent in the prior corresponding period. The 2013/14 figure included the impact of the carbon tax, Rex said.

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“The board remains optimistic that the net result of the headwinds and tailwinds will still be moderately positive for the Group and is committed to paying a final dividend if this materialises,” Howell said in a statement.

Rex cut some routes in regional NSW in September in a bid to stem losses on some marginal routes.

No dividend was declared.

However, Rex said in a slide presentation accompanying the first half results the board was committed to paying a full year dividend if the profit outlook was realised.

Rex shares closed Tuesday’s training day down 9.5 cents, or 8.84 per cent at 98 cents.

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Your email address will not be published. Required fields are marked *

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