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Highlights:
- Regional Express Holdings, popularly known as REX, has signed various significant deals with major travel companies in June 2022.
- The agreements will be effective from July 2022.
- REX expects to deliver improved financials in the next financial year, with zero change in fleet number.
The shares of Regional Express Holdings Limited (ASX:REX) were spotted trading 3.960% higher at AU$1.050 per share at 1:30 PM AEST on the ASX today (24 June).
The ASX-listed transportation company announced that it has struck multiple deals with major travel agency groups in June 2022.
The share price of Regional Express has fallen over 19% on the ASX in last 12 months. On the other hand, Regional Express’ year-to-date share price also fell over 28% (as of 1:54 PM AEST on the ASX today, 24 June).
Why are Regional Express shares under investors’ radar today?
Regional Express has signed agreements with Flight Centre (ASX:FLT), Helloworld (ASX:HLO), Webjet (ASX:WEB), Consolidated Travel and Corporate Travel Management.
With Flight Centre, REX has signed a decade-long agreement. According to the terms of the agreement, REX will be Flight Centre’s partner of choice over the next ten years.
Region Express expects that all these agreements will help the company double its annual domestic jet revenue in FY23 compared to its annualised domestic jet revenue at present, with no increase in fleet size. REX’s regional revenue is also expected to improve once these agreements come into effect.
All the agreements of Regional Express are expected to come into effect from July 2022, with the commencement of the new financial year (FY23).
Meanwhile, the S&P/ASX 200 Industrial sector (ASX:XNJ) was marked 0.495% higher at 6232.600 at 1:30 PM AEST on the ASX today (24 June).
Image source: © Kenchiro755 | Megapixl.com
What did Regional Express’ management say?
Ann Elliott, General Manager, Sales, Regional Express, stated that the company is looking forward to working in close partnership with its travel agency community as Regional Express continues to grow its network.
Ann further added that these new partnerships signify the company’s growing reputation as a safe, reliable, and affordable full-service airline which is enjoying ever-increasing passenger support.
About REX:
Regional Express Holdings Limited is an Australian airline company with a market capitalisation of AU$111.25 million. The company is primarily involved with the transportation of freight and passengers through air transport services.
Regional Express operates a significant number of fleets across 60 destinations throughout various parts of Australia. The company also offer ticket booking services, airport lounge facility, web check-in facilities, travel insurance, and many more.
Also read: FLT, QAN, REX- Travel stocks to watch out for in March
