Regional Express Holdings Ltd (ASX: REX) shares are lifting off today following the release of the airline's half-year (1H21) results. At the time of writing, the Rex share price is trading 2.84% higher at $1.63 a share.
Let's take a look at how the company has been performing.
What's driving the Rex share price?
The Rex share price is on the rise today despite the airline reporting that its passenger numbers decreased by 71.2% for the period due to coronavirus travel restrictions.
Revenue (excluding government grants and subsidies) for the half sank by 60.5%, or $100.6 million, to $65.6 million compared to 1H20 revenue of $166.2 million.
However, Rex's total 1H21 revenue including government grants and subsidies was $125.1 million.
Net profit for 1H21 jumped 43.5% to land at $9.9 million vs $6.9 million for 1H20.
In other news boosting the Rex share price, the company's earnings per share (EPS) popped up to 9 cents for the 1H21 period from 6.2 cents in the prior corresponding half.
Total assets at the end of the first half came in at $274.2 million, compared with $252.8 million in total assets in 1H20.
CEO comments
Commenting on the airline's results, Rex executive chair Lim Kim Hai said:
The COVID pandemic has completely devastated every passenger airline and has been the most significant set-back the global airline industry has ever experienced in its history. Rex would have been obliged to shut down over 90% of its network if not for various federal and state governments assistance programmes…
Rex's regional operations in 2H FY21 are only expected to be marginally improved compared to the first half as the roll out of vaccination from March is not expected to make a significant difference until the new financial year. Should this eventuate, then the expected cessation of all government assistance packages in the final quarter of this FY will mean that the Group is expected to incur significant losses in that period.
The board did not declare a dividend and Rex did not provide any guidance due to the "extreme volatility" the company is facing.
Rex share price snapshot
The Rex share price has climbed by more than 50% over the past six months and more than 65% over the past year.
Based on the current share price, the company's market capitalisation is approximately $174.6 million. Rex currently has 110.2 million shares outstanding.
