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Rex First Quarter Unaudited Profit Rise Sparks Increase in Forecast for Full Financial Year
Thursday, November 16, 2006

Regional Express Holdings Limited (“Rex”) today announced a first quarter rise in net profit and a revised profit guidance forecast for the full financial year 2007.

Rex reported an unaudited Group profit after tax for the first quarter of $5.7m, up 46 percent on the same period last year.

Rex Executive Chairman, Lim Kim Hai said the first quarter result was pleasing given the continued high price of fuel in the quarter and the severe drought conditions covering much of regional Australia.

“To continue to improve markedly on our performance shows the strength of our Group even in trying conditions. As a result we have revised our guidance for the full year forecast to a 20 percent increase in profit after tax over last year.

Passengers carried increased almost 20 percent with average load factor improving from 65 to 68 percent and passenger revenue up 22.3 percent over the first quarter last year. Total costs increased 8.5 percent mainly due to higher fuel and staffing costs. Before tax profit margin improved from 13.9 percent to 15.5 percent.

“The results are a further testimony to the commitment and efforts of staff and port agents and reflect our success in minimising costs and improving productivity,” Mr Lim said.

The unaudited results were announced at Rex’s Annual General Meeting of shareholders held in Sydney today, its maiden AGM following its successful listing in November last year.

Rex is Australia’s largest independent regional airline operating services to 26 regional destinations from its hubs at Sydney, Melbourne and Adelaide.