Rex Australia's most profitable airline, despite 45 per cent drop in profit

FLYING HIGH: Rex remains Australia’s most profitable airline.
FLYING HIGH: Rex remains Australia’s most profitable airline.

REGIONAL Express may have experienced a 45 per cent drop in profit in the past 12 months, but it remains Australia’s most profitable airline for the third consecutive year. 

On Thursday, Rex announced a $10.7 million profit before tax in the year ending June 30, 2014.

Rex executive chairman Lim Kim Hai said the results reflected a drop in passengers and higher fuel prices.

“The Australian economy continued to deteriorate in the period under review and resulted in 38,000 fewer Rex passengers, or a reduction of 3.4 per cent,” he said.

“On top of that, we had the burden of increased government taxes in the form of the carbon tax and a significant increase in the fuel levy to fund the Civil Aviation Safety Authority.”

Mr Lim said the tax increases had added more nails in the coffin of the aviation industry.

“The environment is so toxic that, incredible as it sounds, Rex is not only the most profitable passenger airline group for the third consecutive year, it has more accumulated [profit before tax] than Qantas or Virgin Australia over the last nine years,” he said.

“Our high efficiencies have enabled us to continue to be profitable, and our very strong foundations allowed us to make a significant investment of over $56 million even during these difficult times.”