Rex increases half-year PBT by 10%

The Regional Express (Rex) Group has published its results for the first half of its fiscal year (FY14/15) with its profit before tax (PBT) increasing 10% to A$5.5 million on a turnover of A$129.8 million.

The Group reports that passenger revenue was flat but that it managed to have lower operating costs aided by the repeal of the Carbon Tax. Fuel cost was also lower on a hedged price that would see A$2 million of savings for the full financial year.

Rex chief operating officer, Neville Howell commented, “Whilst passenger demand was seen to stabilise in the first half of the financial year, the Group remained cautious on the second half. The sharp fall of oil prices could have a negative impact on the resource industry, especially the energy sector. The early weeks of the second half did record a softening of passenger demand again. On the other hand, the new Queensland routes which began on 1 January 2015 are expected to perform well.

"The Board remains optimistic that the net result of the headwinds and tailwinds will still be moderately positive for the Group and is committed to paying a final dividend if this materialises," Howell confirmed.

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