LONDON – Australian regional carrier Rex airlines has today announced its unaudited figures from November 22 which have shown a further increase in profitability for its domestic Boeing 737 jet operations.
In their statement the carrier reported that its Profit Before Tax (PBT) improved from about $2 million to $2.8 million.
This makes November the third consecutive month that the airline’s domestic jet operations have been overall profitable since the jet operations resumed in February 2022.
Saab 340 fleet operating at a loss
Throughout 2022, Rex airlines have locked horns with domestic rival Qantas link in the regional market.
Rex operates 61 Saab 340 twin-engine turboprop aircraft on regional operations, and whilst their domestic jet operations are showing a healthy increase in profitability, their turboprop fleet is still in the red.
The carrier attributes at least some of the blame to what it has previously characterised as predatory behaviour on regional routes by rival Qantaslink. In today’s statement the airline says:
“The regional Saab 340 operations are still making a loss of less than $0.2 million for November, due to the predatory actions of Qantas.”
“But EBITDA for the month has doubled to $2.2 million from the positive $1 million for the month of October, again making it the third consecutive month the regional operations have been cash-flow positive since COVID.”
In their past financial announcement of November 2022, Rex airlines stated that their regional Saab operations would return to monthly profitability by Q3 of FY 2023.
In today’s announcement, it appears the carrier has brought this projection forward, saying: “The Company believes that the regional Saab operations will return to monthly overall profitability in the current quarter.”
The entire Rex Group showed a profit for the second consecutive month, with the PBT for the month at just over $3 million following a smaller PBT of $800,000 the month before.
The Rex Board reaffirms its forecast that, barring any further external shocks, the Company will return to profitability before tax for the Financial Year.
About Rex Airlines
Rex is Australia’s largest independent regional and domestic airline operating a fleet of 61 Saab 340 and 7 Boeing 737-800NG aircraft to 58 destinations throughout all states in Australia.
In addition to the airline Rex, the Rex Group comprises wholly owned subsidiaries Pel-Air Aviation (air freight, aeromedical and charter operator), the Australian Airline Pilot Academy with campuses in Wagga Wagga and Ballarat, and propeller maintenance organisation, Australian Aerospace Propeller Maintenance.
Rex is also a 50% shareholder of National Jet Express (NJE), a premier Fly-In-Fly-Out (FIFO), charter and freight operator.