Australia's largest independent regional airline, Regional Express, will cut the number of flights on several regional routes in NSW because of heavy losses.
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After reviewing its regional network, Rex will reduce frequencies between Sydney and Taree, Grafton, Lismore and Newcastle from October 27.
Rex chief operating officer Neville Howell said the airline had been suffering major losses on a number of marginal routes from Sydney to regional towns.
"Several routes on the NSW network carry heavy losses and the situation is no longer tenable. The board had ordered a review to either drop or reduce services on our most marginal routes," he said.
The ASX-listed airline began a review after two years of steep falls in profits.
"Management was able to gain board approval to maintain services to all routes but with capacity reduced to better match demand. To improve operating efficiencies some routes are being linked with another port," he said.
Rex said it would stick by its promise to offer a direct early morning flight from Broken Hill to Sydney, as well as an evening service. At the moment, services between Sydney and Broken Hill are via Dubbo or Mildura.
After large annual losses by Qantas and Virgin Australia, Rex warned last month that regional aviation was in worse shape by highlighting the collapse of two small airlines within nine months.
Darwin-based Vincent Aviation was placed in the hands of receivers in May, five months after regional NSW carrier Brindabella Airlines met the same fate.
