The Regional Express Holdings Ltd (ASX: REX) share price has taken off today following the release of a strong full-year result.
In afternoon trade the regional airline’s shares are up 7% to $1.16.
Here are key takeaways from the release:
- Total revenue rose 9.7% to $281 million.
- Fuel costs fell 12.2% to $30.9 million.
- Profit before tax came in at $17.8 million, compared to a $10.7 million loss in FY 2016.
- Passengers rose 9% to 1.2 million.
- Average fare increased 3% to $213.90.
Much like Qantas Airways Limited (ASX: QAN), Regional Express benefitted greatly from low fuel costs in FY 2017.
This, and an increase in passenger numbers and average fares, resulted in an impressive swing to profit from a sizeable loss in FY 2016.
Pleasingly for its shareholders management has forecast mid-teen earnings growth in FY 2018.
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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.