Rex Airlines posts $46.1 million loss, worst in 16 years amid fuel and employee costs

Rex Airlines has posted a loss of $46.1 million, which is the company’s worst performance in 16 years amid rising costs.

It comes despite an increase in revenue of $319.2 million, with the airline hoping to do better in the coming financial year.

Rex reported that fuel costs were $65.4 million due to the war in Ukraine, while personnel costs reached $149.4 million, an increase of nearly 40 percent as a result of new flights. nationals.

“The lingering impact of Covid-19 meant that passenger services did not begin to recover until February 2022,” Chief Executive Lim Kim Hai said.

“Prior to that, both Saab’s domestic aircraft operations and regional operations were either suspended or greatly reduced.

“Considering that Covid devastated nearly three-quarters of the fiscal year and the war in Ukraine starting in February, causing crude oil prices to soar more than 70 percent over the fiscal year, reaching a near-record high of A$174 per barrel in June 2022, as well as other supply shocks in the international economy, I am mildly pleased that our performance is not much worse than it is.”

He said he was confident the airline had “turned the corner”.

“In July, the load factor of domestic aircraft operations reached an all-time high of 86%, while Saab’s regional operations recorded higher passenger numbers, revenue and load factors compared to pre-COVID figures. , despite five percent fewer flights,” he said. he said.

“These pleasing results are the result of partnerships with corporations and travel agencies that were formalized at the end of the previous fiscal year.

“We have already seen 35 percent of the monthly amounts committed to partnerships in the first two months and we have every reason to believe that performance will be stronger in the coming months.

“I also note that fuel prices have slipped back to A$130 a barrel in the most recent week.”

The company did not declare a complementary dividend due to losses due to the pandemic.

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