REX ANNOUNCES THIRD QUARTER RESULTS FOR FY2011

Regional Express (Rex) announced an unaudited Group Profit Before Tax (PBT) of $15.7 million for the nine months ended 31 March 2011, representing a reduction of 9.8% from the same period last year.

In comparison to the same period in FY 2010,
- Group revenue increased by 2.8% to $176.3 million
- Passengers carried decreased by 2.8% to 908,667
- Capacity (Available Seat Kilometre) increased by 1.8% to 560 million

The unaudited consolidated income statement and statement of financial position for that period are attached.

Commenting on the results, Rex’s Executive Chairman Lim Kim Hai notes that the outcome is consistent with the profit guidance given on 20 April 2011 which showed an expected drop in PBT of 10% for the full financial year.

“The operating environment is extremely challenging with fuel price (MOPS) in the third quarter almost 20% higher than the previous period and with continued softening of passenger demand.” Mr Lim said.

“The very high fuel price is making the situation quite untenable and all airlines are compelled to put in place rigorous measures to remain profitable. As foreshadowed in the earlier media release, the Rex Board has carried out a review of its network and has identified a number of routes that may not be sustainable should the situation degrade further especially in light of the Federal Government’s decision to significantly reduce its contributions to regional air services throughout Australia from 1 July 2012.”

The routes identified are:
- Sydney-Taree
- Sydney-Grafton
- Sydney-Moruya
- Sydney-Bathurst
- Melbourne-Griffith
? Melbourne-King Island
? Melbourne-Merimbula

Rex has started briefing some stakeholders of these communities and will provide ample notice when the final decision is made.

Regional Express (Rex) is Australia’s largest independent regional airline operating a fleet of more than 40 Saab 340 aircraft on some 1,300 weekly flights to 35 destinations throughout New South Wales, Victoria, Tasmania, South Australia and Queensland. The Rex Group comprises Regional Express, air freight and charter operator Pel-Air Aviation and Dubbo- based regional airline Air Link, as well as the pilot academy Australian Airline Pilot Academy.