Rex Airlines warns of $35m loss due to ‘supply chain shocks’

Rex Airlines’ expectation of posting a profit this financial year has been dashed, with the predominantly regional carrier revising its rosy prediction to warn of a $35m loss, just as the aviation market booms. The airline has blamed the global shortage of pilots and engineers, as well as “supply chain shocks” after the peak of the pandemic for disrupting its network and contributing to the revised financial result. Rex said it had been forced to make “significant reductions” to its flight schedule in recent months “to match the need for aircraft, pilot and engineers to what is available”. Roaring post-pandemic travel demand has set up rival Qantas to post a record multi-billion dollar profit this financial year and Virgin Australia to also record a bumper result. However much of Rex’s ageing fleet of 36-seater Saab 340 aircraft it uses for regional routes remain grounded and the significant maintenance task in the face of engineer and parts shortages have forced the airline to cut regional services. Rex also said appetite for domestic business travel had been down in recent months, as companies were instead footing the bill for exorbitant international air fares. “Business travel in the months of May and June have significantly reduced due largely to corporate travel budgets being exhausted following exponential increases of international fares,” Rex said.<br/>