The Regional Express Holdings Ltd (ASX: REX) share price is in positive territory during late afternoon trade. This comes after the regional airline company dropped its full-year results for the 2021 financial year.
At the time of writing, Regional Express shares are travelling 2.54% higher to $1.21.
Let's take a look at how the company performed for the period.
Regional Express share price moves ahead despite mixed performance
Investors are adding the Regional Express share price to their holdings following the company's latest results. Here are some of the key operational highlights:
- Group total revenue of $256.2 million, down 20.4% on the prior corresponding period (FY20 $321.8 million);
- Underlying operating loss before tax of $18.4 million, up 33% (FY20 loss of $27.4 million);
- Statutory profit after tax (PAT) loss of $4.9 million, up 34.6% (FY20 statutory PAT loss of $19.4 million);
- No dividend declared
What happened in FY21 for Regional Express?
The company reported mixed numbers for its scorecard for the 2021 financial year. However, this hasn't affected the Rex share price, and its peers alike. In fact, most travel shares are up today as the Australian government accelerates its vaccination program.
For the 12 months ending 30 June 2021, Regional Express recorded passenger revenue of $125.2 million, down 41.3%. This is a stark contrast from the $213.2 million achieved in FY20.
Management managed to keep costs down with expenses, excluding fuel, coming in at $249.7 million, down 20.9%. In comparison, this time last year, costs not including aviation fuel were at $315.6 million.
This led to Regional Express registering an underlying operating loss before tax of $18.4 million, up 33% (FY20 loss of $27.4 million).
What did management say?
Regional Express executive chair, Lim Kim Hai touched on the result, saying:
The airline industry has never been as badly ravaged in its entire history as today with a staggering drop of 56% in passenger numbers globally. To understand the magnitude of the devastation, the drop in global passenger numbers was 16% during the Global Financial Crisis. Rex's passenger numbers fell by 29% in the past financial year.
FY22 outlook for Regional Express
Looking ahead, Regional Express noted the first half of FY22 will be impacted by the current lockdowns and domestic border closures. Furthermore, given the unpredictable nature of the pandemic, new waves of infection could hit Australian shores.
Given this outlook, Regional Express is pessimistic about the recovery of the aviation market. While snap travel restrictions and border shutdowns can happen at any time, the company moved against providing a profit guidance.
