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Rex issues profit downgrade

written by australianaviation.com.au | August 3, 2015

A Regional Express (Rex) Saab 340 aircraft.

Falling passenger numbers have prompted Regional Express (Rex) to issue a profit downgrade less than a month before handing down its 2014/15 full year financial results.

In a statement to the Australian Securities Exchange on Friday, Rex said its profit outlook for the 12 months to June 30 2015 had been revised to “moderately negative for the Rex Group for the full financial year”.

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“The airline continued to see deteriorating passenger numbers for the full year, albeit at a much lower pace than the two prior years, which was contrary to original expectations of a bottoming out of the decline in passenger numbers,” Rex said.

Previously, Rex had said it expected full year profit for 2014/15 to be “moderately positive for the Rex Group for the full financial year”.

Regional aviation has been hit in recent times with the slowdown in mining construction and sluggish consumer confidence, which has affected both charter and fly-in/fly-out operations and demand on marginal regular public transport routes to many country cities and towns.

The airline group was due to hand down its 2014/15 financial results on August 28.

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Rex posted net profit of $7.725 million in 2013/14, which was down 44.9 per cent from the prior corresponding period.

Fly into Spring with Australian Aviation’s latest print edition. Starting from $49.95 a year, you can read comprehensive coverage on all sectors of the industry to keep you in the loop. Get your hands on the subscription today. Subscribe now at australianaviation.com.au.

4 Comments

  • Johnny

    says:

    I wonder if the lack of consumer confidence is based on them not having any major trunk routes. QantasLink operates thin routes but still has consumer confidence because of them being associated to Qantas mainline. Could it be advantageous for Rex to acquire some larger aircraft and really try to operate on some larger routes?

  • Deano

    says:

    Agree 110%
    Link Syd Mlb Adl and onward to their regional ports
    Larger aircraft or even their own SAABs for now
    Qantas / Virgin have a massive advantage for a passenger traveling from Regional NSW to other major Citys other than Sydney
    Australia is crying out for a legitimate 3rd airline
    Predecessors such as Compass failed in part from not having a feeder network
    REX pumps thousands of passengers daily through Sydney many fly on to MLB BNE ADL with Virgin
    These passengers would fly onward on REX if the opportunity was there

    How’s about this
    3-4 x second hand 717s or similar
    True economy pitched seats
    Prices at around $125.00 each way
    Sydney Melbourne Adelaide and return linking their 3 major hubs 3 x Daily
    Sydney Gold Coast (or Brisbane or Sunshine Coast) Cairns Linking 2 hubs and a holiday destination Daily

  • James

    says:

    Deano,

    We already have 4 airlines doing trunk routes !!!! Jetstar & Tiger also have the newest fleets by far.

  • Deano

    says:

    James, you are serious right……
    If there was serious competition between the 4 Jetstar would be throwing
    30+ flights a day at SYD MLB not 11

Leave a Comment

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

Rex issues profit downgrade

written by australianaviation.com.au | August 3, 2015

A Regional Express (Rex) Saab 340 aircraft.

Falling passenger numbers have prompted Regional Express (Rex) to issue a profit downgrade less than a month before handing down its 2014/15 full year financial results.

In a statement to the Australian Securities Exchange on Friday, Rex said its profit outlook for the 12 months to June 30 2015 had been revised to “moderately negative for the Rex Group for the full financial year”.

Advertisement
Advertisement

“The airline continued to see deteriorating passenger numbers for the full year, albeit at a much lower pace than the two prior years, which was contrary to original expectations of a bottoming out of the decline in passenger numbers,” Rex said.

Previously, Rex had said it expected full year profit for 2014/15 to be “moderately positive for the Rex Group for the full financial year”.

Regional aviation has been hit in recent times with the slowdown in mining construction and sluggish consumer confidence, which has affected both charter and fly-in/fly-out operations and demand on marginal regular public transport routes to many country cities and towns.

The airline group was due to hand down its 2014/15 financial results on August 28.

PROMOTED CONTENT

Rex posted net profit of $7.725 million in 2013/14, which was down 44.9 per cent from the prior corresponding period.

Fly into Spring with Australian Aviation’s latest print edition. Starting from $49.95 a year, you can read comprehensive coverage on all sectors of the industry to keep you in the loop. Get your hands on the subscription today. Subscribe now at australianaviation.com.au.

4 Comments

  • Johnny

    says:

    I wonder if the lack of consumer confidence is based on them not having any major trunk routes. QantasLink operates thin routes but still has consumer confidence because of them being associated to Qantas mainline. Could it be advantageous for Rex to acquire some larger aircraft and really try to operate on some larger routes?

  • Deano

    says:

    Agree 110%
    Link Syd Mlb Adl and onward to their regional ports
    Larger aircraft or even their own SAABs for now
    Qantas / Virgin have a massive advantage for a passenger traveling from Regional NSW to other major Citys other than Sydney
    Australia is crying out for a legitimate 3rd airline
    Predecessors such as Compass failed in part from not having a feeder network
    REX pumps thousands of passengers daily through Sydney many fly on to MLB BNE ADL with Virgin
    These passengers would fly onward on REX if the opportunity was there

    How’s about this
    3-4 x second hand 717s or similar
    True economy pitched seats
    Prices at around $125.00 each way
    Sydney Melbourne Adelaide and return linking their 3 major hubs 3 x Daily
    Sydney Gold Coast (or Brisbane or Sunshine Coast) Cairns Linking 2 hubs and a holiday destination Daily

  • James

    says:

    Deano,

    We already have 4 airlines doing trunk routes !!!! Jetstar & Tiger also have the newest fleets by far.

  • Deano

    says:

    James, you are serious right……
    If there was serious competition between the 4 Jetstar would be throwing
    30+ flights a day at SYD MLB not 11

Leave a Comment

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

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