Rex profits hit

Rex shares fell nearly 10% after the regional airline warned that full-year profit could be down by as much as 40%, prompting market concern about weaker earnings and the company’s outlook.

The company warned that full-year profit could be down by as much as 40% compared with prior expectations.

For the six months to December 31, Rex’s net profit slumped 33% to $9 million, while revenue fell 2.7% to $135.4 million.

Rex cited increasing government taxes and regulations that are dampening domestic expenditure and slowing passenger demand, as well as rising fuel costs, as reasons for the negative outlook.

Rex specifically named rising fuel costs as a factor in its profit downgrade, indicating higher operating costs are contributing to weaker profit outcomes.

In plain terms, Rex is saying that higher taxes and regulations are reducing how much people spend domestically, which is leading to fewer passengers and lower ticket revenue—key drivers of the airline’s earnings.

Investors may want to watch Rex’s updates on passenger numbers and revenue, any guidance on fuel cost management, and government policy or tax changes that could affect domestic travel demand.

Yes — Rex reported revenue was down 2.7%, falling to $135.4 million for the six months to December 31.