REX Airlines has downgraded its profit guidance for 2022/23, forecasting a $35 million operational loss for the 12 months to 30 June in a recent update posted to the ASX.
The announcement is a significant downgrade on the interim profit guidance posted by the regional carrier in late February, which predicted an operational profit for the current financial year.
Rex blamed disruptions to its network due to supply chain issues and shortages of pilots and engineers, in addition to a notable drop in business travel over the last two months, which it attributes to “corporate travel budgets being exhausted following exponential increases of international fares”.
Dispute the blow, Rex said it “remains optimistic for its outlook on a group operational profit before tax for FY2024 and beyond with the continued expansion of its domestic jet operations network and with the start of several new contractual works one by its subsidiaries”.
MEANWHILE, the partly Rex-owned Dovetail Electric Aviation revealed that Hyundai Motor Group’s HTWO has signed on to supply a hydrogen fuel cell system for electric aviation powertrain trials.
The deal will progress Rex’s ambition of converting its turbine-powered aircraft to electric propulsion jets (render pictured), with the new fuel cell system to be tested Down Under before being integrated with Dovetail’s Iron Bird.
The electric aviation start-up, which Rex purchased a 20% stake in earlier this year, expects to operate its first electric flight as soon as 2024.