The Regional Express (Rex) group has announced a $9.6 million after-tax loss for the 2015-16 financial year.
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Rex, which operates flights out of Orange, confirmed on Wednesday the result was due to a $15 million impairment of goodwill and assets.
The company reported a before-tax operating profit of $4.3 million, based on a turnover of $261.9 million, compared with $6.7 million in operating profit the previous year.
The result followed a $6.7 million after-tax profit in 2014-15.
Rex chief operating officer Neville Howell said the group had to make some non-cash write downs.
“[This was] due to the cessation of a defence contract, which resulted in the first full-year statutory loss Rex has reported since 2002-03,” he said.
The group had to make some non-cash write downs due to the cessation of a defence contract.
- Rex chief operating officer Neville Howell
He said the Western Australian routes, which began on February 28, were expected to contribute 9 per cent of Rex’s total passengers in the 2017 financial year.
“This, together with the reduced fuel costs from hedging initiatives, should see Rex post better results in [2017]," he said.
Orange passenger numbers in 2015-16 were steady on the previous year.
