REX claims $19mil profit in tough year
REGIONAL Express Holdings Ltd (REX) is claiming to be the most profitable listed airline group in Australia after releasing its full financial year results.
The results for the year ending 30 June 2013 gave a profit before tax of $19.2 million.
REX Executive Chairman, Lim Kim Hai said it would ordinarily be grounds for much jubilation.
"But instead we at REX are all too painfully aware that this pole position is an aberration arising from one of the most toxic environments ever to face aviation in Australia," he said.
"Indeed for Rex, we barely had time to celebrate our 10- year anniversary and record profit in FY (financial year) 12, when we saw sales plunge almost immedi- ately from 1 July 2012 after the Federal Government's carbon tax was implemented, together with a whole host of poli- cies hostile to regional aviation."
REX ended the year with profits down 45% and passenger numbers down 6.8%.
"REX is a very efficient, formidable and operationally excellent airline. Our earnings are even more than double that of Qantas," Mr Lim said.
"REX remains confident of Australia's future and our board has authorised an unprecedented investment plan of $50 million in this FY."
In June, Minister Albanese promised $2.12 million for the upgrade of the Grafton Airport, which REX currently flies out of.
But a REX spokeswoman at the time said the upgrade would not guarantee it would continue to use the airport.