Residents in two regional West Australian communities fear they could be left without regular flights after issues emerged with the nation's third largest airline.

Rex Airlines remained in a trading halt on the ASX as of Tuesday afternoon, pending an upcoming announcement.

In WA, Rex offers regional routes to Esperance, Albany, Carnarvon and Monkey Mia.

The trading halt has not yet stopped flights, but there is rising uncertainty for the people who rely on Rex for travel.

Esperance mother of three Keena Creedon was diagnosed with advanced breast cancer last year.

While there is "no sign" of the disease now, she will need treatment in Perth every three weeks for the foreseeable future.

Crucial connections

The 700-kilometre one-way drive is too difficult for Ms Creedon to manage and she has been depending on the Rex service, which is the only airline connecting Esperance and Perth.

Now the 38-year-old is worried for her family's future in the region.

"If we ended up with no airline … we would potentially have to look at moving closer to Perth, because we're just too far away for me to be able to go to Perth every three weeks, and that's not going to change anytime soon," Ms Creedon said.

"We'd have to move our three kids — they're settled, they've got their own lives.

Ms Creedon said if the air service was discontinued, the impact on Esperance would be significant.

"I don't mind if it's Rex – or whoever it is – but we can't be left without an airline in our town," she said.

Albany resident David Gee flies to Perth each week for medical treatment and read about the airline's woes while waiting to board a flight.

"There's rumours going around … when someone runs out of money, regional areas always cop it," he said.

"When Virgin stopped flying to Albany their reason was they didn't make money out of Albany at all."

Albany business owner Leanne Whittingstall said any reduction of flights to the city would be devastating.

"It'll have a big impact particularly for people needing medical treatment here or Perth," she said.

"There's people that are more elderly that don't want to drive and need to access Perth … if we lose the flights it's going to really impact the town."

About 1,300km north of Albany, on Doorawarrah Station in WA's Gascyone, Waddi Robinson said Rex flights to nearby Carnarvon were a key service.

"The government won't be able to allow the services to cease — it'll just impact people too much," he said.

Mr Robinson said the Rex flights provided Carnarvon and nearby stations with a critical link to the capital.

"You need to have that connection to Perth for all sorts of reasons," he said.

"When the holidays are on that plane is absolutely chock-a-block with (boarding) school students."

'Immature air market'

Albany airport is managed by the City of Albany, which Mayor Greg Stocks said had been kept in the dark, but had worked hard in recent years to secure air services.

"It's a vital service … people rely on it for medical, for work, leisure and tourism," he said.

"There are bigger things at play here and we have to wait and see and what that impact means for Albany."

WA Transport minister Rita Saffioti said she was in contact with federal government and was seeking more information from Rex.

"We've always been a supporter of Rex — they've been a key player in regional market," she said.

Ms Saffioti said was worried about the impact on competition when an airline started having issues.

"We've had an immature air market," she said.

"WA intrastate travel is a significant part of many of the airlines programs because of FIFO.