Alliance Aviation Services (AQZ) Company Presentation summary

Financial performance and guidance

• FY25 EBITDA guidance updated to $205–210M, up from $202.1M, despite operational disruptions such as aircraft damage, industrial action, and weather events.

• Profit before tax guidance lowered to $80–85M from $92.9M due to flight cancellations, airport closures, and fleet relocations.

• Net debt forecasted at $425–430M by June 2025, with a target reduction to $315–360M by June 2026, aiming for a Net Debt/EBITDA ratio of 1.5–1.7x.

• Debt reduction to be funded by operating cash flow, asset monetisation, and cost efficiencies, enabling potential dividend recommencement.

• Strong revenue and EBITDA growth, with EBITDA CAGR of 23% from FY20–FY24 and record cash generation.

Strategic growth and fleet expansion

• Fleet expanded from 38 aircraft in 2020 to 77 in 2024, including significant E190 acquisitions and Fokker 50 retirement.

• Staff headcount increased from 551 in 2020 to 1,445 in 2024, reflecting operational scale-up.

• Annual flight hours grew from 37,913 in FY20 to 104,545 in FY24, a 63% increase.

• Major milestones include Qantas wet lease agreements, new hangar acquisitions, and CASA approvals.

• Focus on 100-seat market, leveraging fleet flexibility and technical expertise for trading and operational advantage.

Operational focus and challenges

• Emphasis on safety, on-time performance, and financial sustainability as core KPIs.

• Addressing rapid growth challenges through technology upgrades, leadership changes, and improved staff benefits.

• Implementation of new IT systems, project management office, and Lufthansa systems to enhance efficiency.

• E190 Entry in Service program increased available aircraft and operational flexibility.

• Expanded maintenance capabilities and inventory management to support fleet growth.