Australia’s largest independent regional airline, Regional Express (Rex), has
recorded a massive 10 fold increase in its profits even as oil prices almost doubled
in the last year.
Announcing the results, Rex Executive Chairman Lim Kim Hai said, “Our numbers
continued the strong growth pattern of the previous years and we reached our
millionth passenger for the year on the back of a 22% increase in passengers. Our
revenue also grew 22% to $137m bringing a net profit of $11.3m.”
“This result is all the more satisfying as Rex was completely unhedged last year
and faced the full brunt of the oil price increases that resulted in huge drop in profits
or even losses for many regional airlines.”
“This is a fine testimony to the staff and management of the Company and a fitting
tribute to all those who supported the airline through the difficult times of
establishment and initial operations 3 years ago. This includes Federal and State
Governments, local councils and communities and our many passengers who gave
us the chance we needed. With the overwhelming endorsement from the bush, we
are confident that this financial year will see a continuation of the trend of the last
three years”, Mr Lim said.
| || ||FY2003/04 ||FY2004/05 ||%increase|
|1 ||Passengers ||0.9m ||1.1m ||22|
|2 ||Revenue ||112.4m ||137.1m ||22|
|3 ||Earnings Before Interest, Taxation, |
Depreciation & Amortisation (EBITDA)
|4.0m ||13.7m ||242|
|4 ||Net Profit After Tax ||1.0m ||11.3m ||1003|
|5 ||Available Seat Kilometre (ASK) ||524m ||613m ||17|
|6 ||Revenue Passenger Kilometre (RPK) ||323m ||399m ||23.5|
|7 ||Load Factor ||62% ||65% ||3|
|8 ||Cost per ASK ||23.8c ||21.8c ||-8.4|
Earlier in the week Rex also announced a 50 percent investment in Pel-Air Aviation
Pty Limited, one of the largest and most profitable regional freight and passenger
air charter operators in Australia. Pel-Air has operations from northern Queensland
and Darwin to Melbourne and Adelaide, provides international medivac services
and contract target towing services to the Australian Defence Forces.
According to Geoff Breust, Rex’s Managing Director, this investment will bring
about synergies in operations, management and administration and will provide the
platform for strategic growth.
Rex rose from the ashes of the two Ansett owned regional airlines, Hazelton
Airlines and Kendell Airlines and commenced in August 2002. Originally established
as Australiawide Airlines Limited trading as Regional Express, the Company has
this week changed its name to Regional Express Holdings Limited. Three
subsidiary companies of Australiawide Airlines have also been renamed.
The new structure of the group of companies is set out below.
The restructure and renaming is designed to more closely align to the trading name.
Media contact: 0402 438 361 – Sara–Jane Uden