Australian regional largest airline Regional Express has swung to a loss for the full year, its first red ink in 14 years.
Rex announced a statutory after tax loss of $9.6 million following the $15M impairment of goodwill and assets.
The Company reported an operating profit before tax of $4.3M as set out in the table below:
The $4.3M operating profit before tax was achieved on a turnover of $261.9M.
Rex Chief Operating Officer Neville Howell said:
“The Group had to make some non-cash write downs due to the cessation of a Defence contract which resulted in the first full year statutory loss Rex has reported since FY02/03. The new Western Australian routes which began on 28 February 2016 are expected to contribute 9% of Rex’s total passengers in FY17. This together with the reduced fuel costs from hedging initiatives should see Rex post better results in FY17.”
Regional Express (Rex) is Australia’s largest independent regional airline operating a fleet of more than 50 Saab 340 aircraft on some 1,500 weekly flights to 58 destinations throughout all states in Australia. In addition to the regional airline Regional Express, the Rex Group comprises wholly owned subsidiaries Pel-Air Aviation (air freight and charter operator), Air Link (Dubbo-based regional airline) and the Australian Airline Pilot Academy.