Alliance Aviation’s Revenue Jumps 19% While Profit Falls 5% in FY25
Alliance Aviation Services reported record flying hours and strong revenue growth in FY25, while statutory profit dipped slightly amid operational challenges.
- Record 113,621 flying hours achieved, fifth consecutive annual record
- Revenue up 19.4% to $760.9 million, EBITDA increased 16.2% to $207.3 million
- Statutory profit before tax declined 4.9% to $82.1 million
- Fleet expanded to 79 aircraft including five new Embraer E190s
- Net debt rose to $378.1 million due to fleet investments and maintenance
Strong Operational Performance Amid Challenges
Alliance Aviation Services Limited has delivered a robust operating performance for the 2025 financial year, setting a new record with 113,621 flying hours; marking the fifth consecutive year of growth in this key metric. This achievement comes despite significant headwinds, including severe weather disruptions, protected industrial action, and structural damage to two aircraft, which temporarily reduced fleet availability.
Joint Managing Director Stewart Tully highlighted the resilience of the company’s operations, praising the adaptability of its crews and maintenance teams in mitigating schedule disruptions and meeting client commitments. The company’s ability to maintain service continuity under such conditions underscores its operational strength and reliability in the contract and charter aviation sector.
Financial Highlights – Growth in Revenue and EBITDA, Profit Slightly Down
Alliance reported total revenue from continuing operations of $760.9 million, a significant 19.4% increase over the previous year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also rose by 16.2% to $207.3 million, reflecting improved operational efficiency and higher flying activity.
However, statutory profit before tax declined by 4.9% to $82.1 million. This dip is attributed to increased costs associated with fleet expansion, maintenance, and other operational investments. Operating cash flow decreased slightly by 3.4% to $105.6 million, while net debt increased to $378.1 million, driven primarily by aircraft acquisitions and infrastructure investments.
Fleet Expansion and Strategic Initiatives
The company expanded its fleet to 79 aircraft, including the addition of five Embraer E190 jets during the year. This expansion completed the deployment of 30 E190s under a wet lease agreement with Qantas, a key strategic partnership that is expected to contribute positively to revenue and crew utilisation in the coming year.
Owning its entire fleet provides Alliance with a competitive advantage, enabling the company to trade surplus aircraft and parts, streamline maintenance operations, and generate additional revenue streams. Investments in maintenance facilities, including the acquisition of a hangar at Brisbane Airport and plans to expand base maintenance capabilities at Rockhampton, aim to reduce operational costs and carbon emissions by limiting ferry flights to offshore maintenance providers.
Outlook – Focus on Growth, Efficiency, and Debt Reduction
Looking ahead to FY26, Alliance anticipates continued organic growth in contract flying, particularly in Western Australia and Queensland, driven by existing and new client demand. The full-year contribution from Qantas wet lease operations is expected to enhance revenue and operational efficiency.
The company plans to maintain disciplined cost control and prioritise cash flow optimisation to reduce debt levels. Strategic aviation services transactions remain on the agenda to complement core operations and improve profitability. With the fleet expansion phase concluding, the focus will shift towards consolidating gains and strengthening financial health.
Bottom Line?
Alliance’s record operational performance sets a strong foundation, but managing rising costs and debt will be critical as it navigates FY26.
Questions in the middle?
- How will Alliance balance fleet expansion costs with profitability in the near term?
- What impact will ongoing industrial actions and weather disruptions have on future contract flying hours?
- Can the Qantas wet lease partnership sustain growth and improve margins as planned?