Shapeshifter
27th May 2006, 09:38
Rex earnings flying smoothly
May 24, 2006 - 9:29AM
Airline Regional Express Holdings Ltd (Rex) is on track to achieve its full year net profit forecast as it prepares to ramp up its charter business.
Rex on Wednesday reported a net profit of $12 million for the nine months to March 31, almost double the $6.2 million reported in the previous corresponding period.
The company reaffirmed that it expects to achieve its prospectus forecast of a net profit of $15.1 million in 2005/06.
The airline, which floated on the stock exchange last November, said it could double its charter business to $1.6 million a year, after it sets aside a dedicated aircraft to exploit mining activity surrounding Australia's current resources boom.
Rex currently earns $800,000 annually from charter operations to areas like Cobar in central NSW - where miners are overcrowding local accommodation and are flown to nearby towns instead.
"We currently do charter only if we have an available aircraft," Rex managing director Geoff Bruest told AAP.
"We are doing about $800,000 a year worth of charter at the moment and we think we can double that easily, if not a lot more, simply by having that aircraft available."
Mr Bruest said a charter-specific aircraft is likely to be ready by October.
The nine months result was struck on passenger revenue of $108.8 million, up 18 per cent on same period last year.
Earnings per share stood at 12 cents, up from 11 cents a year earlier.
The company also said it was looking at further fleet additions and rationalisation while exploring an increase in network capacity.
Rex's Pel Air operation generated profit before tax of $3.986 million in the nine months, up five per cent.
The company's Air Link operation generated profit before tax of $560,000, up 20 per cent on the previous year.
Rex said its fuel bill accounted for 19.6 per cent of total expenditure, compared to 15.3 per cent previously, after the cost of fuel rose over the period.
Rex shares were unchanged at $1.045.
© 2006 AAP
May 24, 2006 - 9:29AM
Airline Regional Express Holdings Ltd (Rex) is on track to achieve its full year net profit forecast as it prepares to ramp up its charter business.
Rex on Wednesday reported a net profit of $12 million for the nine months to March 31, almost double the $6.2 million reported in the previous corresponding period.
The company reaffirmed that it expects to achieve its prospectus forecast of a net profit of $15.1 million in 2005/06.
The airline, which floated on the stock exchange last November, said it could double its charter business to $1.6 million a year, after it sets aside a dedicated aircraft to exploit mining activity surrounding Australia's current resources boom.
Rex currently earns $800,000 annually from charter operations to areas like Cobar in central NSW - where miners are overcrowding local accommodation and are flown to nearby towns instead.
"We currently do charter only if we have an available aircraft," Rex managing director Geoff Bruest told AAP.
"We are doing about $800,000 a year worth of charter at the moment and we think we can double that easily, if not a lot more, simply by having that aircraft available."
Mr Bruest said a charter-specific aircraft is likely to be ready by October.
The nine months result was struck on passenger revenue of $108.8 million, up 18 per cent on same period last year.
Earnings per share stood at 12 cents, up from 11 cents a year earlier.
The company also said it was looking at further fleet additions and rationalisation while exploring an increase in network capacity.
Rex's Pel Air operation generated profit before tax of $3.986 million in the nine months, up five per cent.
The company's Air Link operation generated profit before tax of $560,000, up 20 per cent on the previous year.
Rex said its fuel bill accounted for 19.6 per cent of total expenditure, compared to 15.3 per cent previously, after the cost of fuel rose over the period.
Rex shares were unchanged at $1.045.
© 2006 AAP