Australia’s Regional Express Holdings Limited (Rex) has reporting a significant statutory profit after tax of AUD$14.4 million for the fiscal year ending on June 30, 2023 (FY23).
This result marks a significant shift from the gloomy scenario of the previous year, where the company faced a loss of AUD$46.1 million.
Rex’s FY23 Financial Performance
As indicated in the profit guidance released on June 20, 2023, Rex faced an operational loss before tax amounting to AUD$31.7M.
While this might sound concerning at first glance, it’s important to note that this is a substantial improvement compared to the prior year’s loss of A$109M.
The key driver behind Rex’s ability to report a statutory profit in FY23 was the A$44.5M positive fair value contribution resulting from Rex’s acquisition of 50% of National Jet Express (NJE) in September 2022.
Lim Kim Hai’s Perspective
Commenting on these positive results, Rex’s Executive Chairman, Lim Kim Hai, emphasized the enduring challenges posed by the lingering effects of the COVID-19 pandemic on the aviation industry.
These challenges manifested in acute pilot shortages and severe disruptions in the supply chain, affecting the industry as a whole.
Despite the challenges, Rex is now poised for an interesting journey, with several strategic initiatives and expansion plans that promise growth and profitability. Let’s take a closer look at some of these promising developments:
Rex is set to bolster its domestic expansion plans and revenue with the delivery of the 8th and 9th 737-800NG aircraft in the first quarter of FY24.
Furthermore, the company envisions adding a 10th aircraft later in the fiscal year. This expansion is expected to enhance Rex’s market presence and strengthen its competitive position.
Pel-Air, a subsidiary of Regional Express Holdings, is anticipated to experience revenue growth in FY24. This growth is attributed to the entry into service of two Pilatus PC24 jets for NSW Ambulance, scheduled for the second half of the fiscal year.
Additionally, Pel-Air will embark on a new contract with Ambulance Victoria during the same period, further contributing to its financial success.
National Jet Express (NJE), in which Rex acquired a 50% stake, is making significant strides in Queensland. The carrier recently inducted an additional Dash 8-400NG into its charter/FIFO fleet.
This strategic move positions NJE to tap into the growing demands of resource companies in Western Australia, South Australia, and Queensland.
NJE’s expansion in this region signifies exciting opportunities for Rex’s future growth.
Rex is committed to nurturing the next generation of aviation professionals through its two pilot academies.
The company has ambitious enrolment targets, with plans to admit 40 Rex cadets and 200 international cadets from Vietnam, Singapore, and China before the end of FY24.
Notably, 60 cadets have already enrolled in the month of August, showcasing the strong demand for Rex’s pilot training programs.
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