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Highlights:
- Rex Airlines has delivered record passenger numbers and revenue on both domestic and regional networks in July.
- The pre-audited base passenger revenue in July is almost double than the monthly average of last three months.
- The air transport services provider will be bringing in its seventh Boeing 737-800NG aircraft to service later this month followed by two more in near future.
- REX shares closed over 6% higher on the ASX today.
Air transport services provider, Regional Express Holdings Limited (ASX:REX) on Tuesday shared that in the very first month of the financial year 2023 (FY23), it has delivered record revenue and a high number of passengers across its regional and domestic networks.
On the back of today’s update, Regional Express’ share price has closed 6.015% stronger at AU$1.410 per share on the ASX. The shares outperformed its benchmark index, ASX 200 Industrials (INDEXASX:XNJ) which ended 0.302% lower at 6,507.50.
Why is REX gaining the limelight today?
As per ASX release, in the month of July, the pre-audited base passenger revenue almost doubled to AU$13.6 million, in comparison with the total monthly average of the last three months which stood at AU$6.87 million.
REX also shared that the load factor was at 86% across the domestic network.
Talking about the regional routes, the passenger numbers and the revenue were equal to that reported in July 2019. The revenue per flight surged by 8% and load factor by 7%.
Lim Kim Hai, executive chairman, REX, stated that the tie-ups largely drove its phenomenal performance that it signed with corporate accounts and Travel Agency groups a few months back.
Kim added that the company expects to see a surge in its numbers in the coming months as the commitment of these tie-ups is not fulfilled yet.
Considering the expected growth in the number of passengers, the company has decided to bring its seventh Boeing 737-800NG aircraft to service this month only.
Also, the company is considering leasing another two aircrafts later this year.
REX emerged ‘stronger and bigger’ than its competitors
Image source: © 2242323 | Megapixl.com
REX has shared some facts and figures that show it has delivered an on-time performance with low cancellation rates compared to its competitors.
Departures OTP (on-time performance) of Rex Airlines was 82.7%, whereas it was 60.4% for Virgin Australia and 58.4% for Qantas. The cancellation rate at Rex Airlines was only 0.7%, and it was 8.1% at Qantas and 5.8% at Virgin Australia.
Road ahead!
Kim said that later this month, the company would begin with Melbourne-Devonport servicing. At this route, QantasLink has had a monopoly for 17 years. The company also intends to break the monopoly of QantasLink by covering other monopolised routes.
REX expects an improvement in its yearly results as it is launching the Frequent Flyer programme and expanding its network.
