Alliance Aviation Services on Wednesday reported a statutory loss before tax of $129.9 million for the year ended June 30, 2026, as non-cash impairments and write-downs weighed on results, even as underlying profit before tax came in at $38.2 million, within revised guidance.
The Brisbane-based regional aviation provider posted underlying revenue of $712.6 million, a 7.4% decline from $769.7 million in FY25, while underlying EBITDA fell 14.4% to $177.5 million. Net debt rose to $459.8 million from $378.0 million, though the company raised $40 million in equity to reduce pro forma net debt to $419.8 million.
Statutory losses were driven by $144.6 million in Fokker aircraft impairments, $7.2 million in right-of-use asset impairments, $12.9 million in inventory write-downs, and $1.6 million in redundancy costs. The company also flagged approximately $12 million in future workforce restructuring expenses.
Second-half performance showed improvement, with underlying profit before tax rising 61% to $23.6 million from $14.6 million in the first half. EBITDA margins expanded to 26% in H2 from 24% in H1, supported by a 15.3% decline in employee costs and a 14.6% reduction in repair and maintenance expenses.
Alliance outlined a turnaround plan targeting $60–75 million in asset sales by FY27, including surplus E190 aircraft, two Brisbane hangars, engine cores, and surplus parts inventory. The company expects to finalize a $33 million payment from AerCap in H1 FY27 and aims to reduce net debt to EBITDA to 2.1x by June 30, 2027, from 2.5x currently.
FY27 guidance includes underlying EBITDA of $175–190 million and underlying profit before tax of $55–60 million, with annualized cost savings expected to reach $38 million by FY28. The company also plans to reduce its fleet from 30 to 23 committed aircraft under revised Qantas wet lease terms, which include improved annual price escalations starting July 1, 2026.
Alliance’s fleet consists of 80 aircraft, including 35 Fokker and 45 Embraer models, with 75 operational and five in storage. The company delivered approximately 110,000 flight hours in FY26 and maintained a 95% on-time performance, with 91% of revenue contracted under 25 major Fly-In, Fly-Out agreements.
Steven Greenway will succeed Stewart Tully as CEO on October 1, 2026, following Tully’s 11-year tenure. The company’s equity raising, underwritten by Barrenjoey Markets, included a 1-for-5.6 pro rata accelerated non-renounceable entitlement offer and an institutional placement at $0.70 per share, a 17.4% discount to the theoretical ex-rights price.
