The Regional Express (Rex) Group has released its preliminary final report announcing a statutory loss after tax of AU$$19.4 million, on a turnover of AU$$321.8M for the financial year 2020 (FY20).
Rex Executive Chairman Lim Kim Hai said, “The COVID-19 pandemic devastated almost every industry with aviation being hit the hardest. Even Rex, which had virtually no debt and strong cash flow in the past, was brought to its knees with passenger numbers plummeting
90% between March 15, 2020 and March 28, 2020. Passenger revenue declined by AU$65 million in the last quarter of FY20.”
“The Rex Group managed to post a small underlying profit before tax of AU$250,000 but ended with a significant statutory loss before tax of AU$27.4 million and loss after tax of AU$19.4 million. This is because the Group has decided to book in a substantial AU$62 million impairment in anticipation of difficult trading conditions in the next two years. The losses were reduced by grants provided by the Commonwealth to all regional carriers to assist with financial liquidity. Rex booked in AU$62.1 million of such government grants and subsidies in FY20 which included the “JobKeeper subsidy.”Email Post to a Friend