Alliance Aviation Services reported an underlying profit before tax of $38.2 million for the year ended June 30, 2026, while posting a statutory loss before tax of $129.9 million due to non-cash impairments. Revenue declined 7.4% year-over-year to $712.6 million, reflecting reduced aviation trading activities that contributed $21.6 million compared with $110 million in the prior year.
The company outlined a turnaround plan targeting underlying EBITDA of $175-190 million in FY27, down from $177.5 million in FY26. Underlying profit before tax is projected at $55-60 million for FY27, up from $38.2 million in FY26, supported by a $38 million annualized cost-reduction program expected to deliver $27 million in savings during FY27. Free cash flow is forecast at $10-20 million for FY27.
Alliance Aviation raised $40 million in equity through a fully underwritten placement priced at $0.70 per share, a 17.4% discount to the theoretical ex-rights price. Major shareholder commitments totaled approximately $12.2 million, including $8.1 million from a holder with a 19.7% stake. Net debt increased to $459.8 million but is projected to decline to a pro forma $419.8 million post-equity raising, with a leverage target of 2.1x net debt to underlying EBITDA by June 30, 2027.
The company plans to sell $60-75 million in assets through FY27, including surplus E190 aircraft, two Brisbane hangars, engine cores, and inventory. Capital expenditure fell to $162.2 million in FY26 from $271.2 million in FY25. ANZ debt facilities have been extended to September 2027.
Operational performance improved in the second half, with underlying profit before tax rising 61% to $23.6 million from $14.6 million in the first half. EBITDA margins expanded from 24% to 26%, while employee costs declined 15.3% and repair and maintenance costs fell 14.6%. The fleet consists of 80 aircraft, including 35 Fokker and 45 Embraer models, with 75 operational and five in storage.
Qantas remains the company’s largest customer, with a staged fleet reduction from 30 to 23 committed aircraft over FY27 under an amended wet lease agreement that includes improved pricing escalation mechanisms. Steven Greenway will succeed Stewart Tully as CEO effective October 1, 2026.
