Australia’s would be 4th domestic airline Regional Express (Rex) has warned that the continuing lockdown in NSW will add $3 million to its projected losses for the June 30 year.
The company told the ASX that it is now forecasting an $18 million net loss for the 2020-21 financial year.
Singapore-controlled Rex said in a June 9 trading update that it was heading for a $15 million loss for 2020-21 but said the subsequent COVID-19 outbreak and lockdown in Sydney had “significantly impacted revenue”.
“Furthermore, no measures were taken initially to mitigate the losses as the lockdown was perceived to be temporary and of short duration,” the group said in statement to the ASX on Tuesday.
“Consequently, the losses for the month of June increased substantially and Rex now believes that the statutory losses for the full 2020-21 will be $18 million.”
Rex said it would stand down staff temporarily at the end of the week after it has consulted with “stakeholders”. no numbers for the standdowns were given on Tuesday.
Larger rival Qantas’ decision stood down 2,500 workers last week.
Rex operates a mix of small and medium jets and prop aircraft to regional and rural destinations around the country. Earlier this year leased a fleet of Boeing 737s start rival services to those offered by Qantas, Jetstar and Virgin in the capital city market.
It had launched six routes between capital or major cities, including on the busy Melbourne-Sydney corridor and had hired new pilots and cabin crew, all of whom have been or will be stood down.
Rex said it will be releasing more details when it releases the audited financial reports on August 31, “including its view on the outlook for aviation in Australia in the months ahead.”
