Rex launches new Sydney to Canberra route for $99

Days after announcing it wouldn't be axing five regional flights, Rex Airlines has said it was adding another route.

Rex announced today it was starting a route from Sydney to Canberra, selling tickets from $99 one-way.

The airline would begin with seven return flights a day, but could add more depending on demand.

READ MORE: Rex maintains five at-risk regional routes

At present, Qantas has a monopoly on flights from Sydney to Canberra.

Rex Deputy Chairman John Sharp said the flight should stimulate more business and leisure traffic between Sydney and Canberra.

"Rex has a war chest of $150 million funded by private equity for domestic services and we will not be deterred in our goal of bringing safe reliable air services at affordable fares to all major cities in Australia," Mr Sharp said.

"We believe that on the Sydney – Canberra route alone Rex will be bringing annual savings of between $60 - $100 million to commuters when numbers return to pre-COVID levels, such is the level of fare gouging being practised."

Rex will have a lounge in Canberra Airport.

Tickets go on sale later this week.

Driving from Sydney to Canberra takes around three hours. A flight takes less than an hour.

On Monday Rex made the surprise decision to keep open five routes: Sydney to Bathurst, Sydney to Cooma, Sydney to Lismore, Sydney to Grafton, and Adelaide to Kangaroo Island.

It is also introducing flights from Sydney to Port Macquarie and Coffs Harbour.

READ MORE: Rex Airlines starts flights between Melbourne and Sydney for first time