REX managed to claw its way closer to profitability in the six months to 31 December, but the latest financial update was not as startling as the massive return to the black noted by fierce rival Qantas during the same period.
Regional Express Holdings announced an after tax loss of $16.5 million, and while it may not be the profits the carrier is after, it did represent a sizable improvement of 55% over the same six months last year.
Rex also called out working more closely with travel agency groups as a strong factor toward generating stronger revenues in the second half of 2023, building on earlier announcements backing the trade in its sales strategy.
The position is a world away from the way Qantas has been treating agents, despite launching agent-related promotions sporadically over the last six months, has been fairly clear about tis intention to create its own sales ecosystem.
Rex’s latest result was negatively impacted by regional operations, which the airline conceded had been a “drag on the group’s performance”, as well as a $23 million hit resulting from mark-to-market valuation of the Convertible Note and Warrant facility entered into with Hong Kong-based PAG in 2020.
“This loss is not cash in nature and was brought about by the increase in value of Rex shares,” Rex was careful to point out.
An operating loss after tax of $1.9 million was also incurred in the six months to 31 December, but in more positive news, cash in the bank almost doubled compared to the prior period.
Further highlights from the update included domestic jet services returning to profitability from Sep 2022 onwards, with operations achieving consistent growth for four consecutive months to the end of the period.