Alliance Aviation Services Limited (ASX: AQZ) operates as a major aviation services company across Australasia, delivering contract flying, charter operations, wet-lease capacity and related aviation solutions, with a strong focus on servicing the mining, energy and government industries. For the half year ended 31 December 2025, the Company reported revenue of AU$359.3 million, reflecting growth in wet-lease and aviation services, while core FIFO operations remained resilient.
Despite record flight hours and stable contracted demand, profitability was significantly impacted by a commercially unviable wet-lease arrangement and elevated maintenance costs. A comprehensive review led to non-cash impairments and inventory write-downs totalling AU$164.8 million, resulting in a statutory loss of AU$105.8 million. Net tangible assets stood at AU$2.22 per share.
Management has initiated a turnaround program focused on disciplined capital allocation, asset sales, cost control and improved contract quality. With revised FY26 guidance of AU$35–40 million in profit before tax, the Company is prioritising cash flow generation and balance sheet strength.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Alliance Aviation Services Limited: Navigating Impairments Amid Operational Turnaround
Alliance Aviation Services Limited (ASX: AQZ) operates as a major aviation services company across Australasia, delivering contract flying, charter operations, wet-lease capacity and related aviation solutions, with a strong focus on servicing the mining, energy and government industries. For the half year ended 31 December 2025, the Company reported revenue of AU$359.3 million, reflecting growth in wet-lease and aviation services, while core FIFO operations remained resilient.
Despite record flight hours and stable contracted demand, profitability was significantly impacted by a commercially unviable wet-lease arrangement and elevated maintenance costs. A comprehensive review led to non-cash impairments and inventory write-downs totalling AU$164.8 million, resulting in a statutory loss of AU$105.8 million. Net tangible assets stood at AU$2.22 per share.
Management has initiated a turnaround program focused on disciplined capital allocation, asset sales, cost control and improved contract quality. With revised FY26 guidance of AU$35–40 million in profit before tax, the Company is prioritising cash flow generation and balance sheet strength.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au