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Rex Airlines, the Australian carrier, has reported a turbulent financial period over the last 12 months, with an uncertain economic outlook casting a shadow over its future. Despite reducing its after-tax losses for the six months to 31 December 2023, the airline has declined to provide a profit guidance for FY24.
The airline’s growth has been hampered by reduced crew and parts access, suspending several routes. Rex has identified the “relentless pillaging of pilots by other major domestic carriers” as a significant barrier to restarting these key routes.
The carrier posted a statutory loss of $3.2 million after-tax, marking an 80.6% improvement on the substantial $16.5 million loss recorded in the same period last year. Passenger revenue also saw a modest increase of 6.3% to $311.4 million, while total group revenue rose by 4.6% to $353.4 million.
Despite these challenges, Rex highlighted some positive developments. Its joint venture with Cobham Aviation Services, National Jet Express (NJE), continued to expand its client base, securing seven new contracts during H2 2023. This led to revenue growth for NJE of 15% to $119 million.
Looking ahead to the rest of 2024, Rex predicts continued revenue growth. However, the airline also warned that escalating fuel costs would make it challenging to forecast profitability for the whole year.
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