Regional Express (Rex) will indefinitely suspend flights between Sydney and the NSW centres of Port Macquarie and Orange from October 25, less than 10 months after the carrier was sold under a federal government rescue package backed by $60 million in support.
Regional Express (Rex) has announced it will indefinitely halt flights to and from Sydney and Port Macquarie on the Mid North Coast and Orange in the Central West from October 25.
The carrier said the routes were no longer commercially viable because of "entrenched high fuel prices driven by the ongoing conflict in the Middle East, together with lack of demand". Affected customers will be offered "refunds or re-bookings", and Rex said it would consider reinstating the routes "once fuel prices decrease to a level that makes it commercially viable for flights to resume".
Rex was bought by US-based air services company Air T in late 2025, a sale endorsed by the federal government and backed by a $60 million support package plus an additional $108 million to help restructure existing Commonwealth debt. In return for that support, Air T committed to increase the number of aircraft in service, maintain an ongoing level of service to regional Australia, and increase frequencies of profitable flights across its network.
Independent MP Andrew Gee, whose federal electorate includes Orange, described the decision as a "real shock". "It feels like a slap in the face or a kick in the guts for the whole region after everyone called for so much support and so much pressure was put on the government to deliver it," he said.
A spokesperson for Federal Transport Minister Catherine King said in a statement the decision would "be disappointing for many", while noting Rex continues to operate one of Australia's largest regional air networks. "The Government continues to work closely with Rex to understand market challenges and to monitor Rex's compliance with regional commitments," the spokesperson said. The statement noted that customers in both regional destinations would still be able to fly to and from Sydney on different carriers.
Rex said it remained "committed to serving regional and remote Australia".
Analysis
Why This Matters
- Regional travellers in Port Macquarie and Orange lose their direct air link to Sydney, with consequences for business travel, health care access and family trips.
- The move tests whether Air T is honouring the regional service commitments it made in exchange for a taxpayer-funded rescue package.
- The decision raises wider questions about the durability of the rest of Rex's regional network if fuel prices stay elevated.
Background
Regional Express is one of Australia's largest regional airlines, serving country towns on routes that are often thin and costly to operate. The carrier required Commonwealth support to keep flying, and in late 2025 it was sold to US-based Air T, with the government backing the takeover through a support package and debt restructuring. In exchange, Air T promised to keep aircraft in service, maintain regional service levels and add frequencies on profitable routes. The grounding of the two NSW routes comes roughly 10 months after that sale.
Key Perspectives
Regional communities (Independent MP Andrew Gee): Gee called the decision a "real shock" and "a slap in the face or a kick in the guts", arguing the region had pushed hard for the government support that helped keep the airline alive.
Federal government: The Transport Minister's spokesperson said the decision would be "disappointing for many", noted that other carriers still connect both towns to Sydney, and said the government is monitoring Rex's compliance with the regional commitments attached to the rescue.
Rex and Air T: The airline cited entrenched high fuel prices driven by the Middle East conflict and weak demand, offered refunds or re-bookings to affected customers, and said the routes would be considered for reinstatement once they become commercially viable. It reaffirmed its commitment to serving regional and remote Australia.
What to Watch
- Whether fuel prices fall far enough for Rex to follow through on its stated intention to consider reinstating the two routes.
- How the government responds if its monitoring finds Air T is falling short of its regional commitments.
- Whether other thin regional routes face similar suspensions if demand stays weak.