Alliance Aviation Announces ASX Quotation of New Securities under AQZ Code

(AU) Alliance Aviation Services Limited said it will quote new securities on the Australian Securities Exchange from August 15, 2025, trading under code “AQZ.” The step anchors the carrier’s capital program after a year shaped by higher flying activity, stronger EBITDA, and a mix of one-off operational setbacks. In May, management lifted FY25 EBITDA guidance to AU$205–210 million (from AU$202.1 million), while trimming expected profit before tax to AU$80–85 million as disruptions hit schedules and costs. The company is also targeting a leaner balance sheet, pointing to a path from forecast net debt of AU$425–430 million by June 2025 toward AU$315–360 million by June 2026.

Financial markers and operational performance

Alliance reported momentum through HY25 (six months to December 31, 2024):

• Statutory profit before tax: AU$41.3 million (up 9.5% year‑on‑year)
• Total revenue: AU$333.0 million (up 11.3%)
• EBITDA: AU$101.2 million (up 25.9%)

The airline flew 58,362 hours in the half, with 97% of those hours locked into long-term contracts. As at December 31, 2024, 76 aircraft were in revenue service. By mid‑2025 the fleet had grown to 77 aircraft, supporting a workforce of 1,445 employees and record demand.

Management noted FY24 delivered 104,545 flight hours, a rise of 63% since FY20, underscoring ongoing appetite for contract and charter services across Australia and the wider region.

Drivers behind the FY25 guidance reset

The company’s May FY25 guidance update was influenced by several external shocks that tightened capacity and raised costs:

• Aircraft damage and industrial action — slowed flying programs and added expense
• Severe weather in North Queensland — restricted services and created knock‑on delays
• Four‑day Brisbane Airport closure — compressed schedules and reduced revenue opportunities

Despite those pressures, higher flying—particularly wet lease contracts—helped cushion the impact. Stronger EBITDA reflects more block hours, greater contract certainty, and steady demand from resource‑sector shuttles and regional networks.

Market reaction and investor focus

Investors now face a new instrument on‑market as AQZ securities begin trading. The May guidance changes caused share price swings earlier in the year, but management argues the fundamentals remain intact:

• Larger fleet
• Deep contract cover
• Improving operational productivity

Analyst commentary has been broadly constructive on the longer view, including a recent Buy call with a AU$4.22 target price cited in market coverage.

For retail holders, the immediate focus is the balance between cash generation and debt paydown, and what that balance might mean for future capital returns.

Capital plan and leverage targets

Alliance’s capital plan centers on reducing leverage while protecting growth. Key targets and metrics:

Management has flagged several levers to reach these targets:

1. Higher operating cash flow from contracted flying
2. Selected asset sales
3. Tighter cost control across fleet and maintenance programs

Finance chief Andrew Evans described this as a staged reset—keeping capacity available for profitable work while retiring debt as conditions allow.

Important: Achieving the debt reduction targets depends on execution across flying hours, contract delivery, asset sales and cost management.

What the move means for workers and communities

Alliance’s expansion in charter and wet lease work often requires specialized crews and engineers. The company highlighted technology‑led productivity as part of its plan.

• Growth does not change visa rules, but workforce planning may include local hiring and, where permitted, employer sponsorship for roles hard to fill domestically.
• For official information about work rights and employer sponsorship in Australia, see the Department of Home Affairs guidance: https://immi.homeaffairs.gov.au/visas/working-in-australia.

Communities served by long‑term contracts may see steadier schedules as the fleet plan leans on regional jets—particularly ongoing deployment of Embraer E190 aircraft. Benefits include:

• More predictable lift for remote worksites, regional towns, and FIFO families
• Stable demand for small businesses tied to airport activity (catering, maintenance support, etc.)
• Clearer staffing plans and purchasing cycles for supply‑chain partners

VisaVerge.com notes airlines and contractors track hiring needs alongside operational growth. Their analysis suggests candidates watch employer demand, contract wins, and published flying hours to time applications and training.

Operational focus and fleet strategy

Managing Director Scott McMillan pointed to resilience as a recurring theme: despite cost pressures and episodic incidents, flying hours climbed and wet lease revenue rose.

Management’s operational priorities:

• Deliver contracted services first, then place spare capacity into short‑notice assignments
• Refine fleet, schedules, and maintenance windows to sustain reliability
• Center ongoing fleet strategy on the E190 platform, valued for range and economics across resources flying, regional routes, and ad hoc charter

Longer‑term contracts (reported 97% of HY25 flying) provide predictable cash flow—helpful when rising interest costs or weather events test budgets. That predictability supports the debt plan and creates flexibility to act on asset sales when market conditions are favorable.

Potential return to shareholder distributions

Alliance has outlined a possible path back to shareholder distributions:

• If the net debt target and Net Debt/EBITDA band of 1.5–1.7x are achieved by June 2026, the board may consider resuming dividends in FY26.
• This outcome hinges on execution: maintaining aircraft availability, schedule integrity through peak demand, and managing costs (fuel, labor, maintenance).

With AQZ securities now quoted, investors will monitor monthly flying trends and any updates to FY25 finish lines.

Customer and supplier implications

For customers:
– Enlarged fleet and improved reliability could mean more options for contract uplift and short‑term cover, particularly during maintenance peaks or temporary airport capacity constraints.

For supply‑chain partners:
– Steadier block hours can translate to clearer staffing plans and purchasing cycles, reducing the risk of stop‑start work.

Final assessment

The August 15 listing step is not a cure‑all for short‑term volatility. However, the disclosed HY25 numbers and the May guidance update—higher EBITDA, expanded fleet, and record flight hours—show a business progressing while absorbing shocks.

If Alliance can:
– Keep flying hours high
– Hold its contract base
– Reduce debt as planned

then the company’s position in contract and charter services is likely to strengthen through FY26.