Rex glides to profit on NJE acquisition

The news: Regional Express Holdings (Rex) has swung to a full-year profit on the back of an acquisition, but the airline was still struggling from legacy pandemic effects in FY23.

The numbers: Rex posted a statutory net profit after tax of $14.4 million, compared to a $46.1 million loss the year before. Rex recorded a $31.7 million operational loss, narrowing from $106 million the year before, and swung into the black following a $44.5 million fair value contribution from its 50% National Jet Express acquisition in September 2022. Rex Shares were down 2.4% shortly after 1pm AEST.

The context: Rex executive chairman Lim Kim Hai said while pilot shortages and supply chain issues forged in the pandemic had continued in FY23, the future was looking brighter ahead of the delivery of Rex's 8th and 9th 737-800NG aircraft, expected in the first quarter of the new financial year. As a federal inquiry into competition investigated the airline industry this week, former ACCC chair Rod Sims has called on the Commonwealth government to look into how airport slots are allocated, noting smaller players struggle to snare landing slots, the Australian Financial Review reported.