More than 70 jobs will be cut at troubled regional airline Rex as administrators continue to evaluate the business and search for an appropriate buyer.

Rex collapsed into voluntary administration in late July, after days of speculation about the airline’s future.

Since administrators from consulting firm EY were appointed, a total of 594 jobs have been lost from the airline’s domestic business, which was responsible for operating its capital city routes, serviced by Boeing 737s.

But an email sent to 261 employees on Monday afternoon, seen by the ABC, states an additional 73 roles will be cut from Rex, with all positions stemming from its now-defunct capital city business.

“At this stage, subject to the outcome of a consultation process, it is proposed that 73 of 261 current positions will become redundant,” the email read.

“No decisions have been made about which employees will be retrenched as a result of the redundancy of any position.

“No final decision will be confirmed in relation to the proposed structure until we complete this consultation process.”

A meeting between administrators and the 261 affected staff will be held at 4:30pm on Monday.

“The administrators commenced consultation with an additional 261 employees in areas of the business that have a higher headcount than what is required for the operation of a regionally focused airline,” the administrators said in a statement.

“Subject to the outcome of these consultations … under one-third of those participating in consultations may be impacted.”

Among the roles being made redundant within the business are aircraft support officers and team leaders, customer services officers, ground school trainees, flight/pilot trainees and call centre operators.

Administrators say the job losses will not impact the viability and operations of the airline’s regional business, which continues to operate.

“No changes have been made to the operations of the regional network, and the Rex Group has retained all employees who operate these regional services,” the administrators said.

The additional redundancies will see Rex’s total employee headcount reduced to about 1,200 staff — about the same number of workers the business had prior to its failed expansion to capital city services and the COVID-19 pandemic.

Last Thursday, the federal government announced Rex’s regional flights were subject to a regional flight guarantee, meaning Rex’s regional customers would be entitled to receive a full refund in the event their flights were cancelled — although administrators say cancellations are unlikely.

The additional job losses announced by administrators on Monday mean 667 roles have been axed since the airline collapsed in July.

Last week, EY administrator Sam Freeman said more than 20,000 passengers had flown on Rex’s regional services and the business was operating “without fault”.

At Rex’s first creditors’ meeting on August 9, administrators said the airline was around $500 million in debt and owed money to 4,800 creditors, including former staff, suppliers, investors, and other agencies, and it could take months before they were paid their entitlements.

Administrators from EY are still working to determine what led to Rex’s downfall, but have identified preliminary issues including a shortage of pilots and supply chain issues.

A sales process is currently underway for the airline, and administrators are confident a buyer will be found after being inundated with expressions of interest.

A second creditors’ meeting is expected to be held in the first week of September.

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