Rex narrows FY21 operating loss; warns of tough FY22

Australia’s Regional Express (Rex) narrowed its operating loss to A$18.4m (US$13.5m) from A$27.4m a year earlier, but warns of tough times ahead given the impact of a major coronavirus outbreak in Australia. The carrier saw passenger revenue decline 41.3% year on year to A$125.2m in H1 of its 2021 financial year to 30 June, according to its results statement. Net losses also narrowed to A$4.9m, from a net loss of $19.4m a year earlier. The carrier also reduced non-fuel expense by 20.9% to A$250m. As of 30 June 2021, the airline had cash and bank balances of A$30m, compared with $11.2m a year earlier. “The airline industry has never been as badly ravaged in its entire history as today with a staggering drop of 56% in passenger numbers globally,” says Rex chairman Lim Kim Hai. “To understand the magnitude of the devastation, the drop in global passenger numbers was 16% during the Global Financial Crisis. Rex’s passenger numbers fell by 29% in the past fiscal year.” He adds that H1 2022 will see continued lockdowns and border closures, and that the airline’s outlook for 2022 is highly uncertain.<br/>