Rex Airlines Returns to Profitability
Rex Airlines (ZL) has returned to profitability for the first time since resuming operations in February.
Rex Airlines (ZL) has returned to profitability for the first time since resuming operations in February.
DALLAS - Australian domestic carrier Rex Airlines (ZL) has announced a return to profitability for September 2022. It marks the first time ZL has made a profit since resuming operations in February.
In a statement, Rex's Executive Chairman, Lim Kim Hai, said that the return to profit so soon after restarting operations was "truly unprecedented in the airline world."
Like all Australian airlines, Rex has been impacted by the country's strict lockdowns that restricted non-essential travel for almost two years.
"Our domestic jet network passenger numbers for the first three months of this FY [financial year] grew by 60%, 34% and 77%, respectively, when compared to June 2022," Mr Lim explained.
"Revenue growth has been even stronger at 84%, 47%, and 137% for the same three months, suggesting significant yield improvements."
This growth has been helped by developing agreements with travel agencies and corporations. These include Consolidated Travel, Corporate Travel Management, Flight Centre, Helloworld and Webjet, signed in June 2022. Mr Lim said these agreements "would very quickly translate into strong passenger and revenue growth."
Mr. Lim explained that the carrier remains confident about this year's overall results. "The Board gave guidance on 2 August 2022 that it expected FY 2023 to be profitable overall and the current results have further strengthened its conviction. Encouragingly, October 2022 appears to be even stronger than September 2022, with passenger numbers on the jet network 16% higher for the first half of the month when compared with the previous month, while revenue increased 35% on 13% more flying."
The resurgence in regional air travel has led the airline to begin "actively looking for another two Boeing 737-800NG aircraft to expand our domestic jet services," Mr. Lime explained.
Rex currently operates a fleet of seven Boeing 737-800s and 61 Saab 340. It serves 58 destinations across Australia and has become s strong competitor to rivals Qantas (QF) and Virgin Australia (VA).
Featured Image: VH-RYU was Rex's sixth Boeing 737-800. Photo: Rex Airlines
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