News: Regional Express falls on dire outlook

.

Shares in Regional Express Holdings Limited (ASX:REX) have fallen after it forecast a significant deterioration in its first half profit and a dire outlook for the aviation industry.  

 

The regional airline expects its interim profit before tax to drop 40 per cent to about $5 million, down from $12.5 million posted the prior year. 

 

Rex has attributed the guidance to plummeting business-related travel and a slight decline in leisure and other discretionary travel.

 

The company claims the entire aviation industry is financially haemorrhaging and approaching collapse. Rex has also lashed out at the Abbott Government for failing to reverse the trend and called on the government to take action. 

 

Shares in Rex had fallen 4.44 per cent in morning trade to $0.86. 

 

Regional Express Holdings reported a net profit of $14 million in the 2013 financial year.