Regional Express (Rex) Group today announced a statutory Profit After Tax (PAT) of $6.9 million (M) on a turnover of $166.2M for First Half Financial Year 2020 (1H FY20), down from $9.8M for the prior period.
The results were foreshadowed during Rex’s AGM back in November 2019 when the Group’s Profit Before Tax for 1H FY20 was forecast to be reduced by 30% from the prior period.
Rex Executive Chairman Lim Kim Hai said, “Since the start of the FY, the economy was severely impacted by the US-China trade war with a series of natural disasters further compounding the situation. The very weak AUD also impacted earnings severely.”
“Although earnings were down by 30% in 1H FY20, we believe that the Rex Group remains fundamentally strong to weather the temporary setback. The devastating bush fires of the last three months and the COVID-19 outbreak since the end of January did not appear to have a very big impact on regional travel on Rex’s network.”
“The Rex Group has recently secured two very exciting and significant new businesses and we believe that these will bring about considerable contributions to Rex’s earnings over the next decade. Full details will be released in the Group’s half yearly results briefing to shareholders.”
This announcement is authorised by the Board of Directors, Regional Express Holdings Limited.
Regional Express (Rex) is Australia’s largest independent regional airline operating a fleet of 60 Saab 340 aircraft on some 1,500 weekly flights to 60 destinations throughout all states in Australia. In addition to the regional airline Rex, the Rex Group comprises wholly owned subsidiaries Pel-Air Aviation (air freight, aeromedical and charter operator) and the two pilot academies Australian Airline Pilot Academy in Wagga Wagga and Ballarat.