The Regional Express Holdings Ltd (ASX: REX) share price has taken off today following the release of a strong full-year result.
In afternoon trade the regional airline's shares are up 7% to $1.16.
Here are key takeaways from the release:
- Total revenue rose 9.7% to $281 million.
- Fuel costs fell 12.2% to $30.9 million.
- Profit before tax came in at $17.8 million, compared to a $10.7 million loss in FY 2016.
- Passengers rose 9% to 1.2 million.
- Average fare increased 3% to $213.90.
Much like Qantas Airways Limited (ASX: QAN), Regional Express benefitted greatly from low fuel costs in FY 2017.
This, and an increase in passenger numbers and average fares, resulted in an impressive swing to profit from a sizeable loss in FY 2016.
Pleasingly for its shareholders management has forecast mid-teen earnings growth in FY 2018.
