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Highlights

  • AQZ reported 11% YoY revenue growth to AUD 338.9 million in H1FY25.
  • AQZ has optimised operational staffing, with final Qantas wet lease delivery set for 2HFY25.
  • AQZ maintains FY25 guidance with PBT of AUD 92.9 million and EBITDA of AUD 202.1 million.

Alliance Aviation Services Limited (ASX:AQZ) is an ASX-listed company that provides contract, charter, and aviation maintenance services. The company offers specialised aviation services to its clients and airlines, including aircraft leasing, parts sales, airport management, engine leasing, trading and engineering solutions.

In the first half of the financial year 2025 (H1FY25), AQZ’s revenue rose 11% YoYr to AUD 338.9 million, primarily driven by an increase in flight hours to 58,362—up from 50,793 in H1FY24. Of these, 97% were operated under long-term contracts, with 76 aircraft actively in revenue service. NPAT rose by 10% YoY to AUD 28.9 million in H1FY25.

Business Update

Through an ASX announcement dated 27 June, AQZ announced that it has agreed to sell most of its Embraer E190-E1 inventory to AVIAN for USD 32.5 million as part of its long-term E190 support strategy, with the inventory to be relocated to Brisbane Airport to establish a major regional E190 parts hub. This makes the company better positioned to strengthen its balance sheet, reduces inventory and net debt, while maintaining its FY25 profit guidance.

On 24 June, AQZ announced that it has signed a binding agreement to sell 12 CF34-10 engines to Beautech Power Systems for approximately AUD 62.3 million, with deliveries spanning FY25 and early FY26. The transaction will significantly lower inventory and net debt, with no change to FY25 profit guidance.

Company Outlook

AQZ shares an optimistic FY25 outlook on the back of the additional aircraft deployments on wet and dry lease services, steady charter operations, and a focus on cost management and margin growth. The company has optimised operational staffing, and the final Qantas wet lease delivery is set for 2HFY25.

Alliance Aviation expects thirteen E190 aircraft to settle between January 2025 and June 2026, boosting cash flows. The company is investing in technology and expanding maintenance facility use, with FY25 guidance unchanged at AUD 92.9 million PBT and AUD 202.1 million EBITDA.

Share performance of AQZ

AQZ shares ended flat at AUD 2.640 per share on 17 July 2025. The stock has risen 10.46% in the past month and 3.53% over three months. However, it is down 7.37% over six months, 8.65% over nine months, and 13.16% across the last year.

AQZ reached its 52-week high of AUD 3.170 on 2 August 2024, while the 52-week low of AUD 2.120 was recorded on 23 June 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 17 July 2025. The reference data in this report has been partly sourced from EODHD/Others.

 

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.