- Airline Regional Express (REX) forecasts greater losses due to the current lockdowns in the east coast
- The company is expecting a full-year loss of $18 million, which is higher than the previously expected $15 million
- The COVID -19 outbreak that began in New South Wales has caused border closures, significantly impacting the airline’s revenue
- Notably, Rex is expecting to temporarily stand down staff, this number will be released later this week
- Just before the market closes, Rex is up 0.42 per cent, trading at $1.19 per share
Regional Express (REX) is expecting an even bigger loss due to the current lockdowns in the east coast.
Rex is now expecting a full-year loss of $18 million, which is higher than the previously expected $15 million.
The COVID-19 outbreak that began in New South Wales has caused border closures, therefore, significantly impacting airlines such as Rex’s revenue.
Rex is expecting to implement temporary stand downs within the company after it consults with the stakeholders.
The number of stand-downs will be released at the end of the week.
Further details on Rex’s financial position will be released in the audited financial reports on August 31.
Earlier this year, Rex added two new Boeing 737-800NG aircraft to its fleet. The aircrafts are expected to arrive in August, taking the airlines fleet of 737s to a total of eight.
Just before the market closed, Rex was trading up 0.42 per cent to $1.19 per share at 3:37 pm AEST.