The Regional Express Holdings Ltd (ASX: REX) share price is shrugging off the continued sell-off on the ASX today.
This comes after the company announced an increase in services across major regional centres on its network.
At the time of writing, the regional airline operator’s shares are swapping hands at $1.10, up 2.8%.
For context, the All Ordinaries Index (ASX: XAO) is trading at 6,830 points, down 0.74%.
Regional Express expands popular services on its network
The Regional Express share price is on the move today as investors digest the company’s latest update.
According to its announcement, Regional Express advised that 11 regional cities will see up to a 67% increase in weekday return services. This includes popular traveller destinations in New South Wales, Victoria, and South Australia.
In total, nine of the services will run from Sydney to other regional cities within the state. They are: Albury, Broken Hill, Coffs Harbour, Dubbo, Orange, Griffith, Merimbula/Moruya, Port Macquarie, and Wagga Wagga.
In addition, Melbourne will add a service to and from Mildura, and Adelaide will run a return service to Port Lincoln.
These services will start on 4 July and, to promote the offering, the new additional services are on sale.
However, the company noted that from June 27, it will be withdrawing from the Sydney to Cooma route. This is due to the lack of demand for the service which has recorded less than 2,000 passengers in the past year.
Regional Express chair John Sharp touched on the update, saying:
Rex sees strong recovery in these regional centres and is dedicating considerable resources to meet this demand. These improved schedules will see us operating more flights on our regional network than pre-COVID and mark a significant turning point for the airline as we return to profitability.
We are confident that FY23 will see a great improvement in the financial performance of our regional operations since Rex will only operate on densely patronized regional routes where the load factors and yields will be much more favourable.
Regional Express share price snapshot
Over the past 12 months, the Regional Express share price has fallen 10% on the back weakened investor sentiment.
When looking at year-to-date, its shares have continued to tread lower to post a loss of 20%.
Based on today’s price, Regional Express commands a market capitalisation of roughly $121 million.