Regional Express says it won’t swing to a profit this financial year after all and is instead predicting a $35 million loss after cutting back on flight schedules.

Rex said on Wednesday it had been forced to significantly reduce its flights in recent months because of a global shortage of pilots and engineers and post-COVID supply chain shocks.

Also, business travel in May and June has been significantly reduced, largely because of corporate travel budgets being exhausted due to “exponential increases” in international fares.

The regional airline in February declared it had incurred an after-tax loss of $16.5 million for the six months to December 31 but said it was hopeful it would have positive operating profits for the full financial year “barring any further external shocks”.

On Wednesday, the airline said it was optimistic for a group profit before tax for 2023/24.

Rex flies a fleet of 59 Saab 340s turboprops and seven Boeing 737-700NG jet aircraft to 58 destinations across Australia. Two more Boeings are expected to arrive in the next few weeks.

– AAP