REX chops flights between Lismore, Grafton and Sydney

FLIGHT capacity on Regional Express airline services between Lismore and Sydney will be significantly reduced after the airline announced this week it was struggling to make a profit.

Grafton stopovers will also be part of the service changes, scheduled to come into effect from October 27.

Rex chief operating officer Neville Howell said the reduction in capacity on several NSW marginal routes was part of the most wide ranging network review to date.

"The review was triggered by two consecutive years of steep profit declines which saw the airline's profits plummet by 75% during this period," he said.

"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."

Rex announced the new arrangements would affect Taree, Grafton, Lismore and Newcastle.

Monday to Friday flights from Lismore to Sydney departing at 6.40am, 10.45am and 4.05pm will include a stopover in Grafton from the end of October.

Return flights to Lismore departing Sydney at 7am and 5.45pm will also include Grafton stopovers.

Flight departure times from Lismore to Sydney will change slightly with the 6.30am moving to 6.40am, 9am to 9.35am, 11.15am Saturday flight to 10.45am and the 5pm flight to 4.05pm.

Some return flights times from Sydney to Lismore will also change with the 9.15am Saturday flight moving to 8.45am, the 3pm flight to 2.05pm, and the 6.25pm flight to 5.45pm.

The Saturday 3pm flight will also move to the Saturday 5.45pm flight.

Mr Howell said the network review was the second phase of the airline's overall strategy to boost profitability.

The first phase includes possible redundancies across the Rex Group, to be reviewed at the end of November.

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