Alliance Aviation Services Ltd reported an underlying net profit of AUD 26.8 million for the fiscal year ended June 30, 2026, a rebound from the first half as cost reductions and stronger charter demand offset non-cash impairments tied to its Fokker fleet.
Underlying earnings before interest, tax, depreciation and amortization totaled AUD 177.5 million, up from AUD 17 million in operating cash flow before aircraft purchases and AerCap payments. Underlying profit before tax reached AUD 38.2 million, within the revised guidance range, while statutory results showed a loss of AUD 129.9 million due to asset write-downs.
Revenue for the year was AUD 712.6 million, with underlying profit before tax rising 61% from the first half to the second half. The company’s EBITDA margin expanded to 26% in the second half from 24% in the first half, supported by a 14% decline in block hours and reductions of 15.3% in labor costs and 14.6% in repairs and maintenance.
Alliance’s fleet stood at 80 aircraft at year-end, including 45 Embraer E190s and 35 Fokker aircraft. Five Fokker 100s were placed into storage during FY2026, with additional retirements planned for FY2027 to reduce the operating fleet to around 72 aircraft.
The company completed a fully underwritten AUD 40 million equity raising at AUD 0.70 per share, underwritten by Barrenjoey, reducing net debt to approximately AUD 420 million on a pro forma basis. Available liquidity increased to AUD 69.2 million before transaction costs, while the net debt-to-EBITDA ratio fell to 2.5 times from 2.7 times.
Alliance targets asset sales of AUD 60-75 million or more through FY2027, including surplus aircraft, two Brisbane hangars, engine cores and parts inventory. The company aims to reduce its net debt-to-EBITDA ratio to approximately 2.1 times by June 30, 2027.
Guidance for FY2027 includes underlying EBITDA of AUD 175-190 million and underlying profit before tax of AUD 55-60 million. Cost savings of AUD 27 million are expected in FY2027, with an annualized reduction of AUD 38 million from FY2028. Business-as-usual capital expenditure is projected at AUD 137 million, with depreciation and amortization expense of AUD 90 million embedded in guidance.
Alliance’s Qantas wet lease agreement was restructured to raise pricing from July 1, 2026, with an annual escalation mechanism. The fleet commitment will step down from 30 to 23 E190s by July 1, 2027, as part of the renegotiated terms.
