Rex is on the rebound, expanding geographic reach with Delta Air Lines

Airlines are examples of logistical excellence. There’s a mind boggling amount of operational planning cogs that need to turn to move people and their stuff to where it needs to go. Getting there on time and in one piece is one thing, maximising efficiencies for the airline is another. 

In an effort to improve their customer experience and increase efficiency, regional airline Rex (ASX: REX) has partnered with leading global airline Delta Air Lines (NYSE: DAL). As one of the world’s oldest airlines still in operation, Delta knows a thing or two about boosting efficiency having been recognised for their world class customer experience and operational reliability by J.D Power, Fortune’s World’s Most Admired Companies, the Wall Street Journal and Business Travel News.

The two carriers have signed a letter of intent to enter into a definitive commercial agreement which will see Delta and Rex provide ticketing and baggage services to one another, providing customers with a seamless connection experience. 

Delta operates over 4,000 flights per day to over 275 locations worldwide. One such route is their daily non-stop service from Sydney to Los Angeles. Delta is intent on increasing the route’s frequency to ten flights a week come December. Interline ticketing will allow travellers to fly regionally in Australia through Rex, and internationally through Delta, significantly expanding potential revenue and customer base.

Deputy Chairman of Rex, the Hon John Sharp AM is optimistic that the partnership will give a much needed boost to the post-COVID return of international travel. “Delta will not only connect international travellers on Rex’s trunk domestic routes, but could also allow them easy access to Rex’s expansive network of over 60 routes throughout regional Australia.” 

Delta’s Vice President – Alliance Partner Development, Jeff Arinder said: “Rex will be a valued partner that will bring additional connectivity and geographic reach to both airlines. We look forward to welcoming more customers to our flights from Sydney to the U.S and providing a world-class customer experience in the air and on the ground.” 

Reeling from the effects of COVID, Rex saw an operating loss of $27.4 million in FY20 and $18.4 million in FY21. The Company is on the rebound though, with customer numbers on the rise and passenger revenue up 60.5% to $68.7 million for the first half of 2022.