Airline Regional Express will temporarily stand down staff as NSW coronavirus lockdowns and border closures increase the size of expected losses.
Rex, which flies to 61 destinations in Australia, said it would release the number of stand downs at the end of the week after consultation with "stakeholders".
New guidance issued on Tuesday forecast an $18 million loss.
"The lockdowns that eventuated in New South Wales in June and the ensuing border closures have significantly impacted revenue," Rex told the ASX.
"Furthermore, no measures were taken initially to mitigate the losses as the lockdown was perceived to be temporary and of short duration.
"Consequently, the losses for the month of June increased substantially and Rex now believes that the statutory losses for the full financial year 2021 will be $18 million."
IN OTHER NEWS:
The pandemic and travel restrictions also crunched Rex in 2019-20.
It reported a statutory after tax loss of $19.4 million for that year.
Rex on Tuesday said it would release more details with its audited financial reports on August 31.
That would include its view on Australian aviation's outlook for coming months.
Sean Ford
The Advocate Newspaper, Tasmania. Business, economics, politics, crime.
The Advocate Newspaper, Tasmania. Business, economics, politics, crime.
