Profit Drops For Regional Airline Rex, But It's Still The Only Australian Airline In The Black

Regional Express has seen its profit nearly halved. Photo: supplied

Australian regional airline Regional Express Holdings Ltd (Rex) has posted a $10.7 million profit before tax for the 2013-14 year, despite executive chairman Lim Kim Hai calling the industry environment “toxic” and in a “prolonged and endemic crisis”.

The result is down 45% on the previous financial year, but a slight improvement on the first half predictions. Passenger numbers fell 3.4% or 34,000 over all.

But, Lim pointed out, Rex remains Australia’s most profitable passenger airline group for the third consecutive year.

“It has accumulated more PBT than Qantas or Virgin Australia over the last nine years,” he said.

But the Singapore-based boss took aim at the federal Government for continuing to add to costs for airlines, pointing to the company paying record average fuel prices that included an increase in the fuel levy to fund the Civil Aviation Safety Authority.

“I call on the Abbott government to urgently start implementing the concrete initiatives promised in the Coalition’s Policy for Aviation. Otherwise, the repeal of the carbon tax alone will not be sufficient to avoid the irreversible damage done to aviation, especially to regional aviation, where we have seen 16 carriers collapse since 9/11,” Lim said.

Rex’s share price remains unchanged at 84 cents.

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