Regional Express Holdings Limited (Rex), Australia's largest regional airline, announced a revised group net profit forecast of above 40% growth for its full financial year over the previous period.

In comparison to the first 9 months of FY06:

• Group revenue increased by 20.6% to AU$153.3 million;
• Passengers carried increased by 19.8% to 1.045 million;
• Capacity (Available Seat Kilometre) grew 13.5% to 573 million; and
• Group profit after tax increased by 51.8% to AU$17.3 million.

Rex also announced that it would advance its purchase of the remaining 25% of Pel Air Aviation Pty Ltd to June 30 2007. The original settlement date as disclosed in Rex's prospectus was November 2007.

The AU$6 million purchase will be funded by Rex Shares in line with the Put and Call Option Deed entered into by Rex and the original shareholders of Pel Air as disclosed in the prospectus.