Rex eyes breakeven by July amid ‘uneven’ regional demand recovery

Australia’s Regional Express (Rex) is hopeful it will break even by July this year, even as it acknowledges that its regional operations are loss-making “at current demand levels”. In an interim business update disclosed on 10 May, Rex states that its cash position has “improved exponentially”, with its unencumbered cash reserves increasing tenfold compared to March 2020, as a result of strong forward bookings. The carrier notes that while regional demand is at around 60% pre-pandemic levels, “recovery is uneven across the states”. It cites two Australian states — Queensland and Western Australia — where it has had a strong showing. In Queensland, demand has surpassed pre-pandemic levels, while Western Australian flights are approaching pre-pandemic demand levels. As for capacity, Rex discloses that regional capacity now stands at around 35% pre-pandemic levels. “Rex is cautiously expanding its regional network in an effort to stimulate demand. We are keeping our capacity growth about 5% ahead of demand growth,” the carrier states.<br/>