The airline said, “Passengers will be denied boarding if they refuse to wear a mask except if there are exceptional reasons.”

Rex aims to rival Qantas, Jetstar and Virgin Australia by expanding its network to service capital cities by early next year.

Rex has yet again raised the stakes in its fight for more financial aid by claiming that “lives could be lost” if the airline is unable to transport medical tests on selected routes.

On Wednesday, Rex temporarily reversed its decision to suspend Queensland passenger flights after a last-minute intervention from the state’s government. The announcement is the latest in a dramatic negotiation between regional airlines and state and federal government, that has featured brinkmanship and U-turns from both camps. This content is available exclusively to Australian Aviation members.