Rex misled market with big talk before $31.7m loss

Rex faced legal findings after allegedly misleading the stock market with optimistic statements before posting a large loss. The Australian Securities and Investments Commission launched action in the NSW Supreme Court over a 2023 statement in which Rex forecast a positive result months before it reported an eight-figure deficit. On Tuesday, Justice Ashley Black ruled ASIC had proven the allegations against Rex and former executive chairman Lim Kim Hai, while finding ASIC had not proven its case against three former non-executive directors: former chair John Sharp and directors Lincoln Pan and Siddharth Khotkar. The judge did not provide reasons, and a penalty hearing will be scheduled later. ASIC alleged misrepresentation through claims of board confidence in strong financial performance, despite eventual results showing a $31.7 million loss. The airline’s earlier statement on February 28, 2023 projected optimism for positive operating profits unless external shocks occurred, and it was not corrected until June 20 when Rex forecast a $35 million loss with 10 days remaining. Rex entered administration in 2024 with about $500 million in debt, later acquired by US group Air T via administrators EY in October 2025, after receiving an $80 million support package in late 2024 and a $50 million debt purchase by the federal government. Rex flies to 53 destinations and is Australia’s largest independent regional airline.