Australia’s Rex sees revenue decline, swings to pre-tax loss

Australian carrier Regional Express (Rex) swung to pre-tax loss in the first half of its 2022 financial year, as revenue also declined. Rex’s pre-tax loss was A$53m in the six months to 31 December 2021, compared with a pre-tax profit of A$14.2m in the previous corresponding period, according to its financial results. The carrier also swung to a net loss of A$36.7m, compared with a net profit of A$9.9m a year earlier. The carrier’s net result was aided by A$16m in tax benefits. Total revenue fell 6.8% to A$116m, mainly due to government grants and subsidies declining from $59m to $28m. Otherwise, revenue from ‘contracts from customers’ grew 34.7% to A$88m, owing to the carrier’s new domestic air transport business, which operates Boeing 737-800s on trunk routes. The first half of Rex’s 2022 financial year was the first accounting period in which the 737 domestic operation is fully reflected, following the operation’s launch in early 2021. This operation helped ASKs more than double, with Rex carrying 346,000 passengers, up 82% from the first half of its 2021 financial year. Load factors, however, were challenged, falling 7.3 percentage points to 53.4%. Charter revenue for the six months ended 31 December declined 2.5% to A$15.4m. Rex attributed its performance to the coronavirus pandemic, which had two resurgences in Australia in 2021.<br/>