Regional Express adds capacity with Boeing 737-800 boost

The country’s newest domestic carrier, Regional Express, has secured two more Boeing 737-800s and is readying to unlock extra capacity after a string of profitable months.

The airline confirmed it had signed a letter of intent to lease the Boeing 737-800NGs, bringing Rex’s fleet to nine. The aircraft are due to arrive in Australia in June and July.

Rex’s deputy chairman, John Sharp, said the carrier’s domestic jet services had been profitable for the past four months and the airline was well positioned to capitalise on the insatiable demand.

“The travelling public has been crying out for our reliable and affordable services in the light of the shameless price gouging by Qantas and these new additions will help to alleviate the situation,” Sharp said.

Rex is yet to decide where to deploy the extra aircraft, but Sharp did not rule any routes out. The airline began flying on major domestic routes in 2021 and was the most reliable airline last year, a time dominated by slumping consumer confidence in airlines despite record demand, lost bags, missed flights and extensive delays.

In addition to its fleet of 737s, Rex flies 61 Saab 340s on its 50 regional routes. With about 5 per cent of market share, the airline has a significantly smaller operation than competitors Qantas Airways and Virgin Australia, with 75 and 65 737s respectively.

The airline finalised its acquisition of fly-in, fly-out carrier National Jet Express from Cobham last year for $48 million.

Qantas, Virgin and Regional Express declared a return to profitability in 2022 with Qantas issuing two profit upgrades for the December half of 2022 and Virgin Australia’s owner, Bain Capital, considering returning the airline to the ASX boards less than three years after it exited voluntary administration.