Growth in passenger numbers, expansion into Western Australia and a lower fuel bill have helped airline Regional Express return to profitability, and it expects its improved performance to continue.
The airline made a net profit of $12.6 million in the year to June 30, up from the prior year's $9.6 million loss.
Rex's passenger revenue rose by 22 per cent as passenger numbers on its traditional services increased, while it also benefited from the addition of routes linking Albany and Esperance to Perth in February 2016.
Profit growth was also driven by favourable exchange rates and lower fuel costs, Rex said.
Executive chairman Lim Kim Hai said a recovery in the airline's passenger numbers reflected the health of Australian economy.
"As long as the Australian economy continues this modest recovery, I have confidence that Rex will continue to perform well," Mr Hai said in a statement.
The airline said it expects to achieve profit growth of approximately 15 per cent if its passenger numbers continue to improve.
It has also declared a final dividend of 10 cents per share, its first payout to shareholders in five years, in light of its confidence in its future prospects.
The dividend is subject to approval by shareholders at the company's next annual general meeting.
Rex shares were up 6.5 cents, or six per cent, at $1.15 at 1310 AEST.
REX SAYS CLEARER SKIES AHEAD:
* Full year net profit of $12.6m vs loss of $9.6m
* Revenue up 7.3pct to $281m
* Final dividend of 10 cents, up from no dividend
