Rex Airlines records $46.1m loss amid rising costs

Rex Airlines posted a loss of $ 46.1 million, the company’s worst performance in 16 years due to rising costs.

This comes despite an increase in revenue of $ 319.2 million, with the airline hoping for better results in the next fiscal year.

Rex said fuel costs amounted to $ 65.4 million due to the war in Ukraine, while personnel costs reached $ 149.4 million, an almost 40% increase due to new flights. national.

“The persistent impact of Covid-19 meant that passenger services only began to recover in February 2022,” Executive President Lim Kim Hai said.

“Before that, Saab’s domestic jet operations and regional operations were either suspended or significantly curtailed.

“Considering that Covid devastated virtually three quarters of the fiscal year and the war in Ukraine since February, causing crude oil prices to skyrocket by more than 70% in the fiscal year, reaching a near-record high of AU $. 174 a barrel in June 2022 – along with other supply shocks to the international economy, I am slightly pleased that our performance is not much worse than it is today.

Rex suffered a huge financial blow.  Provided
Camera iconRex suffered a huge financial blow. Provided Credit: Provided

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

“In July, the load factor for domestic jet operations hit an all-time high of 86%, while Saab’s regional operations had higher passenger numbers, revenues and load factors than Saab’s figures. before Covid despite 5% fewer flights, ”he said.

“These good results are the result of partnerships with companies and travel agencies concluded at the end of the previous year.

“We have already seen 35% of the monthly amounts committed to partnerships in the first two months and we have every reason to believe that performance will strengthen in the months to come.

“I also see that fuel prices have dropped to AU $ 130 per barrel over the past week.”

The company has not declared a final dividend given the losses due to the pandemic.

Leave a Reply

Your email address will not be published. Required fields are marked *