MinRes Air posts $112m loss in first full year of operations

By Andrew Curran.

Mineral Resources’ in-house fly-in-fly-out (FIFO) airline, MinRes Air, posted an underlying net loss after tax of AUD112 million (USD77.7 million) in the 12 months to June 30, 2025, along with AUD632 million (USD438.4 million) in impairments over the same period, according to the Australian Financial Review.

The newspaper also reported that Mineral Resources acquired the remaining 49% stake in the fledgling carrier from a Tom Roberts-controlled entity, AVWest FIFO Pty Ltd, for AUD10 million (USD6.9 million) in September 2025, giving the mining company full ownership of its airline.

MinRes Air was established in mid-2024 as a joint venture between Mineral Resources and Perth-based billionaire Tim Roberts.

Mineral Resources CEO Chris Ellison, the driving force behind the airline, has previously argued that running an in-house airline is cheaper than relying on traditional fly-in-fly-out operators such as Qantas, Virgin Australia Regional Airlines or Alliance Airlines to transport workers to remote mine sites.

The company’s financial reports, publicly available through Australian Securities Exchange (ASX) reporting requirements, do not disclose how much Mineral Resources spends transporting employees to and from its mines. However, Ellison has previously said establishing MinRes Air would save the company “tens, if not hundreds, of millions of dollars”.

However, the Australian Financial Review report provides the first insight into the costs of establishing MinRes Air and maintaining its fly-in-fly-out operations.

Less reliance on wet-leases, more use of dry leased aircraft

Mineral Resources has extensive lithium, iron ore, energy and mining services operations across Western Australia. The company generated revenue of around AUD4.5 billion (USD3.1 billion) in the 2024/25 financial year and employs approximately 7,000 people, most of whom travel regularly to remote mine sites.

Initially, MinRes Air relied on A319-100 aircraft supplied by Skytraders and later by SmartLynx Australia (now rebranded as Skytrans). The airline has since secured its own air operator’s certificate and, in addition to leasing third-party aircraft as required, has acquired two A320-200s directly from aircraft lessors and maintains its own flight, ground and engineering crews.

Ellison also argues that operating its own airline gives Mineral Resources greater flexibility than contracting third-party FIFO airline operators, allowing the company to deploy aircraft when and where they are needed.

The airline operates flights between Perth (PER) and Mineral Resources’ Onslow iron ore mine near Ken’s Bore (KYB); Perth and the company’s Wodgina lithium mine (QBW); Perth and Kalgoorlie (KGI) to support another lithium operation; Perth and Newman (ZNE), providing access to the Lamb Creek and Wonmunna iron ore mines; and Brisbane (BNE) to both Ken’s Bore and Wodgina.

Photo: MinRes Air.

Contact the writer: andrew@aerosouthpacific.com