April 13, 2024
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In a significant announcement, Rex Airlines has projected a $35m loss for the financial year. The regional airline attributes this grim outlook to a shortage of pilots and engineers, as well as a decline in business travel impacting their flight schedules.

Qantas, on the other hand, plans to address the capacity issue by adding one million extra seats to its international routes starting in October. According to Chief Executive Alan Joyce, this move aims to bring down airfare prices.

The shortage of skilled professionals in the aviation industry, coupled with supply chain disruptions post-Covid, has impacted Rex’s network. The airline has had to make significant flight reductions over the past months to align aircraft, pilots, and engineers with the available resources.

Additionally, reduced corporate travel budgets following steep increases in international fares have contributed to the decline in business travel during May and June.

Rex Airlines, known as Australia’s largest independent regional airline, operates a fleet of 59 Saab 340s and seven Boeing 737s, serving 58 destinations nationwide.

While facing these challenges, Rex remains optimistic about its future outlook. The airline expects a group operational profit before tax for the 2024 financial year, and its unaudited revenue from regional Saab operations has surpassed pre-Covid levels.

The shortage of skilled staff has compelled Rex to cut a significant number of flights, causing disruptions to their operations.

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