Australia’s Rex in talks for more 737s after boost in passenger numbers
Australian regional and domestic carrier Rex is speeding up deliveries of Boeing 737 aircraft after reporting strong passenger numbers for July.
The carrier said new agreements with travel agencies and corporate accounts had helped drive passenger numbers and that it expected further growth over the next few months. Rex, which competes with Qantas on regional routes, also said its on-time performance and low cancellation rates were helping to attract new customers.
“With this in mind, we have decided to accelerate the introduction of further aircraft to our domestic fleet,” said Rex executive chairman Lim Kim Hai in a statement on August 2, 2022.
“Our 7th Boeing 737-800NG aircraft will enter service later this month and we are in advanced discussions to lease another two for later this year.”
Rex said that on regional routes, July’s revenue and passenger numbers were “almost identical” to the pre-pandemic month of July 2019. On domestic routes, its base passenger revenue stood at AUD 13.6 million, nearly double the monthly average of the previous three months.
Rex said it believed that domestic and regional operations would be profitable in its current financial year, which runs until June 30, 2023.
Rex currently operates a fleet of 61 Saab 340 and six Boeing 737-800NG aircraft.
The Australian market could soon be seeing more competition, with low-cost start-up Bonza taking delivery of its first Boeing 737 MAX ahead of its planned launch.
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