Regional Express braces for turbulence as profit falls flat

Australian carrier Regional Express reported a flat full-year profit of A$25.2m (US$17m) and expects it to fall by up to 20% in 2020 due to the slowing economic environment and weaker Australian dollar. Passenger revenue for the year ended June 30 rose 7% to $278m, and group revenue rose by a similar amount to $318m. Yield improved by 2.7% and load factor rose 1.8 points to 63.1%. Despite strong efforts with hedging, the airline's fuel costs for the year increased by 30%, and its second half was particularly impacted by the decline of the Australian dollar. Net profit after tax rose 3.6% to $17.5m. Executive chairman Lim Kim Hai commented that the flat result reflected "strong momentum of the first half just about balancing the downward pressures of the second half." <br/>