Rex reported an after-tax loss of $31.11 million for the financial year 2022 (July 2021 to June 2022). The airline attributed the loss to pandemic after-effects, suspension of domestic services, reduced frequency on regional New South Wales routes for the majority of the first half of 2022, from July 2021 to December 2021, and high fuel costs.
On the other hand, Rex started FY2023 on a strong note reporting a $1.35 million profit before tax on its September 2022 domestic jet operations for the second consecutive month.
Rex remained optimistic about 2023, despite the economic slowdown. “The world economic environment remains bleak with high inflation, interest rate, and fuel prices giving rise to the possibility of a recession. Nevertheless, the Rex Board is cautiously optimistic that the Rex Group will be overall profitable in FY23 due to the positive developments cited,” the airline said in a statement.
Rex reported a significant rise in domestic passengers in the first four months of 2023. The airline also plans to add two more Boeing 737-800 in the first half of 2023, making the total fleet count to nine.
Rex reported that the losses in its regional Saab operations were due to what the company described as "predatory actions" by Qantas.
The Australian Financial Review reported Rex Deputy Chairman John Sharpe saying: “You could literally buy one of our business class airfares for half the price of an economy seat on some Qantas flights and we are on the same planes. We operate a 737-800NG to and from Melbourne. It is the same plane; the same route and I would say the in-cabin product is as good as theirs. I don't think Virgin is gouging people but with Qantas and their prices they are gouging."
Going ahead, Rex expects that the regional Saab operations will return to profit by the third quarter of the financial year 2023. Rex operated to a total of 58 destinations with a fleet of 61 Saab 340s.