Rex shares nosedive as profit sinks
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Rex shares nosedive as profit sinks
From the Sydney Morning Herald:
Rex shares nosedive as profit sinks
November 25, 2009 - 12:31PM
Regional Express Holdings' first quarter net profit fell by 23 per cent on the same period last year but the airline forecasts improving conditions in the next quarter.
The regional carrier said today that net profit for the three months to September 30 was $3.7 million, unaudited, down 22.9 per cent on the previous corresponding period.
Rex shares were down 10 cents, or 8.6 per cent, at $1.06 in midday trade.
Unaudited passenger revenue was down 14.6 per cent on the same period last year at $47.5 million, while total revenue fell by 15.8 per cent to $56.9 million.
"Rex sees the operating environment stabilising and expects the following quarter to achieve similar results to the prior year," the company said in a statement.
Deputy chairman John Sharp told the company’s annual meeting today there had been signs of a recovery in the airline sector.
"The group is unable to provide a profit guidance in light of a highly volatile economic outlook, passenger demand, exchange rate and fuel prices," Mr Sharp said. "We are in an uncertain economic climate.
"However there are now signs of a recovery. Rex is well poised for whatever lies ahead having spent the last six years strengthening the business."
The airline posted a 5.6 per cent fall in net profit to $22.98 million in the last financial year.
That result was achieved through cost controls and improved efficiency, Mr Sharp said.
Rex is free of debt and has a strong balance sheet, while its corporate and freight business Pel Air has "a small debt which will be soon paid off", he said.
The company said its board would reassess its dividend postponement in February 2010, with the payment of an interim dividend to proceed if the situation warrants.
AAP
November 25, 2009 - 12:31PM
Regional Express Holdings' first quarter net profit fell by 23 per cent on the same period last year but the airline forecasts improving conditions in the next quarter.
The regional carrier said today that net profit for the three months to September 30 was $3.7 million, unaudited, down 22.9 per cent on the previous corresponding period.
Rex shares were down 10 cents, or 8.6 per cent, at $1.06 in midday trade.
Unaudited passenger revenue was down 14.6 per cent on the same period last year at $47.5 million, while total revenue fell by 15.8 per cent to $56.9 million.
"Rex sees the operating environment stabilising and expects the following quarter to achieve similar results to the prior year," the company said in a statement.
Deputy chairman John Sharp told the company’s annual meeting today there had been signs of a recovery in the airline sector.
"The group is unable to provide a profit guidance in light of a highly volatile economic outlook, passenger demand, exchange rate and fuel prices," Mr Sharp said. "We are in an uncertain economic climate.
"However there are now signs of a recovery. Rex is well poised for whatever lies ahead having spent the last six years strengthening the business."
The airline posted a 5.6 per cent fall in net profit to $22.98 million in the last financial year.
That result was achieved through cost controls and improved efficiency, Mr Sharp said.
Rex is free of debt and has a strong balance sheet, while its corporate and freight business Pel Air has "a small debt which will be soon paid off", he said.
The company said its board would reassess its dividend postponement in February 2010, with the payment of an interim dividend to proceed if the situation warrants.
AAP
Great play on words HEALY, even if it probably wasn't intended!
What really cracks me up though was John Sharp's comment, "However there are now signs of a recovery. Rex is well poised for whatever lies ahead having spent the last six years strenthening the business."
Well poised John? Whatever lies ahead John? The very recovery you refer to will be the same recovery that will once again strip REX of the crews that it needs to operate the services that will enable REX to take advantage of said recovery! Only this time the cupboard is bare when it comes to replacements. In fact it was bare at the end last time, but the GFC gave them a global meltdown lifeline.
So what will happen when 40% of REX's pilots leave for greener pastures. Well, when you consider the ban on overtime as a result of the PIA, and the holes in crewing that simply cannot be filled, I reckon about a 20-30% reduction in the schedule!
Not a good week for memorable quotes John!
What really cracks me up though was John Sharp's comment, "However there are now signs of a recovery. Rex is well poised for whatever lies ahead having spent the last six years strenthening the business."
Well poised John? Whatever lies ahead John? The very recovery you refer to will be the same recovery that will once again strip REX of the crews that it needs to operate the services that will enable REX to take advantage of said recovery! Only this time the cupboard is bare when it comes to replacements. In fact it was bare at the end last time, but the GFC gave them a global meltdown lifeline.
So what will happen when 40% of REX's pilots leave for greener pastures. Well, when you consider the ban on overtime as a result of the PIA, and the holes in crewing that simply cannot be filled, I reckon about a 20-30% reduction in the schedule!
Not a good week for memorable quotes John!
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Hahaha! 
I didn't even realise, I just cut and paste it from the SMH website...brilliant!
I didn't even realise, I just cut and paste it from the SMH website...brilliant!
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Hard to please some people
I dunno. Australian airline companies generally are doing worse than last year, but are still (just) profitable, and we are whinging.
Globally we're losing an airline a day on an industry basis, and iconic flag carriers like Olympic, Alitalia and Brutish Airways are barely surviving.
A little sense of dodged a bullet would seem appropriate, rather than sniping.
Globally we're losing an airline a day on an industry basis, and iconic flag carriers like Olympic, Alitalia and Brutish Airways are barely surviving.
A little sense of dodged a bullet would seem appropriate, rather than sniping.
