Rex misled market with big talk before $31.7m loss
A regional airline misled the stock market by claiming it would deliver strong financial results months before announcing an eight-figure loss, it has been revealed.
The corporate watchdog has taken legal action against embattled regional carrier Rex in the NSW Supreme Court over a statement predicting a positive outcome in 2023.
Judge Ashley Black ruled on Tuesday that the Australian Securities and Investments Commission had proven the allegations against Rex and former chief executive Lim Kim Hai.
But it emerged that ASIC had failed to prove its case against three former non-executive directors – former chairman John Sharp and directors Lincoln Pan and Siddharth Khotkar.
Judge Black made his decision but did not give his reasons.
A sentencing hearing will be held on a date to be determined.
The finding against Lim is not surprising, given that he admitted to the allegations against him in May.
ASIC claimed Rex’s former directors misled the market with statements claiming the board was confident of a strong financial result, months before it announced a $31.7 million loss.
On February 28, 2023, the airline released a statement to the market stating that it was optimistic that barring any external shocks, the company would post a positive operating profit for the financial year.
The statement was not corrected until June 20, when Rex projected a $35 million loss with 10 days left in the fiscal year.
The company watchdog sought criminal and disqualification orders against the former executives.
Rex went into administration in 2024 with around $500 million in debt and was later acquired by US aviation group Air T through administrators EY in October 2025.
The federal government handed the carrier an $80 million lifeline in late 2024, buying $50 million of its debt from a major creditor to keep regional routes running.
Rex is Australia’s largest independent regional airline, flying to 53 destinations across the country.
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