Alliance Aviation Services (AQZ) H1 2026 earnings summary

Executive summary

• Group performance was negatively affected by a commercially unviable wet-lease arrangement, leading to disappointing half-year results and a statutory net loss of $105.8 million, primarily due to $164.8 million in impairments and write-downs on the Fokker fleet and related assets.

• Turnaround actions include a comprehensive business review, leadership changes, increased board oversight, and a focus on capital allocation, free cash flow, asset sales, and expense management.

• The core FIFO (fly-in, fly-out) business remains resilient, supported by strong safety, operational performance, and a positive outlook for the resources sector.

• Aircraft trading activity ceased as of 31 December 2025 to reduce volatility and focus on core operations.

Financial highlights

• Underlying revenue for the half was $368.8 million, up 9% year-over-year, with record flight hours exceeding 59,000.

• Underlying EBITDA was $87.4 million (down 14%), profit before tax $14.6 million, and underlying NPAT $11.9 million (down 59%), all materially lower year-over-year.

• Statutory EBITDA was negative $78.3 million, and statutory net loss after tax was $105.8 million.

• Net debt at period end was $433.4 million; net tangible assets per share fell to $2.22.

• Operating cash flow before aircraft purchases was $8.2 million, with cash conversion weaker than desired.

Outlook and guidance

• FY26 underlying profit before tax is expected to be $35–40 million, reflecting the cessation of aircraft trading, reduced depreciation, and ongoing margin pressure.

• Guidance reflects uncertainty around wet-lease negotiations, asset divestments, and cost efficiency delivery.

• Net debt outlook is uncertain, depending on timing and execution of surplus asset sales.

• CapEx expectations tightened, focusing on essential maintenance and limited growth spend.