AUSTRALIA'S largest regional airline is expecting to take almost a $12 million hit in the next year.
Regional Express is blaming a combination of factors for the revised Profit Before Tax forecast for 2012/13.
In August it forecast a cost hit of between $5 million to $6 million but after further calculations the amount has blown out to almost $12 million, or 25-35 per cent lower than last year's Profit Before Tax amount of $35.1 million.
The company says the carbon tax, the end of enroute rebate scheme, extra security costs and an expected slowdown in the economy in the near future will hit the accounts.
Rex chief operating officer Garry Filmer said in a statement: "As foreshadowed in our earlier warnings, the Government's slew of draconian measures at the start of this FY is having its expected impact on the general economy which in turn is hurting regional aviation badly."
A spokeswoman said: "There will be a continued high focus on internal efficiency improvements. We will not discount any route changes and will continuously undertake a network route review."
The company also runs charter services, freight and pilot training.
In a joint statement today Leader of the Nationals Warren Truss and Liberal MP Greg Hunt said the carbon tax was adding an extra cost to air travel which was further isolating country communities.
"It becomes a defacto financial penalty for regional communities and further isolates those who can't afford the extra cost of flights," it read.