Highlights

  • Alliance Aviation Services reported a FY26 statutory net loss after tax of A$90.9 million, largely reflecting non-cash fleet impairments and asset write-downs.
  • Underlying profit before tax was A$38.2 million and underlying EBITDA was A$177.5 million for FY26.
  • The company launched a fully underwritten A$40 million Equity raising at A$0.70 per new share to support Liquidity and balance-sheet flexibility.

Alliance Aviation Services Limited (ASX:AQZ) entered September 2026 in the middle of a financial and operational reset. Its FY26 result included a statutory net loss after tax of A$90.9 million, while Underlying Profit before tax was A$38.2 million. The difference primarily reflected non-cash Impairment and asset write-downs associated with the Fokker fleet.

Alongside the result, Alliance Aviation Services Limited (ASX:AQZ) announced a fully underwritten A$40 million equity raising comprising an institutional Placement and an accelerated non-renounceable entitlement offer. The Offer Price was A$0.70 per new share. The institutional component was completed in late August, while the retail entitlement offer closed on 11 September 2026, with its outcome scheduled to be announced on 16 September 2026.

Company Overview

Alliance Aviation Services provides contract, charter, wet-lease and related aviation services, with substantial exposure to resources-sector fly-in, fly-out activity. It also supplies specialised aviation services including aircraft leasing, engineering, airport management and parts-related activities.

The company is working through a strategic reset that includes cost reduction, changes to fleet deployment and revised commercial arrangements with major aviation customers.

Financial and Operational Position

For FY26, Revenue from continuing operations was A$693.1 million. Underlying EBITDA was A$177.5 million and underlying profit before tax was A$38.2 million. Statutory loss before tax was A$129.9 million and statutory net loss after tax was A$90.9 million.

The FY26 accounts included A$164.8 million of impairment and asset write-downs. At 30 June 2026, cash and cash equivalents were A$29.2 million, Debt was A$488.8 million and net cash inflow from Operating Activities was A$17.7 million. No final Dividend was declared for FY26.

Management has guided to FY27 underlying EBITDA of A$175 million to A$190 million and underlying profit before tax of A$55 million to A$60 million. These are company guidance ranges rather than forecasts from external analysts.

What Investors May Watch Next

The retail entitlement offer outcome is the immediate financing milestone. Investors may monitor the final proceeds, the pace of debt reduction and any asset sales used to improve liquidity.

Operationally, the key measures are fleet utilisation, maintenance costs, performance under the revised Qantas wet-lease arrangement and progress from the strategic reset. Delivery against FY27 guidance will be an important test of whether the restructuring is translating into improved Earnings and cash generation.

Risks

Alliance carries material financial and operational risk. Its FY26 accounts identified a material uncertainty related to Going Concern that depends on sufficient cash being generated from the Capital raising or asset sales within the expected timeframe. The Business also remains exposed to fleet maintenance, aircraft availability, labour, fuel, customer concentration and resources-sector demand.

Key Takeaways

Alliance Aviation Services Limited (ASX:AQZ) is now being assessed on execution of its Recapitalisation and strategic reset rather than on historical share-price performance. FY26 produced a large statutory loss after fleet write-downs, but the business remained profitable on an underlying basis. The next phase depends on completing the equity raising, improving liquidity and demonstrating that FY27 operating performance can meet management guidance.