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Highlights

  • In H1FY25, revenue reached AUD 338.9 million, reflecting an 11% YoY increase and EBITDA stood at AUD 101.2 million, up 25% YoY.
  • Recently, the company’s directors, James Jackson and Scott McMillan increased their holdings in AQZ.
  • AQZ plans to expand its fleet, enhance operational efficiency through the Rockhampton maintenance facility, and invest in new technology.

Alliance Aviation Services Limited (ASX:AQZ) is an ASX-listed company that offers contract, charter, and allied aviation and maintenance services. With a growing fleet and strategic expansion, AQZ intends to strengthen its position in the aviation industry.

Positive Market Indicators

According to the latest Australian Bureau of Statistics (ABS) data, in December 2024, total visitor arrivals increased by 8.7% annually to 1,853,030, while departures surged by 11.6% to 2,262,020.

ABS data released on 11 February 2025 indicates a 2.8% increase in Australian businesses in the financial year 2023-24, adding 73,125 new enterprises. While 436,018 new businesses entered the market in FY24, and 362,893 companies exited in the previous year. The net increase in business activity and increase in travel is expected to drive demand for transportation and professional services companies.

Financial Performance in H1FY25

AQZ demonstrated significant growth in the six months ended 31 December 2024 (H1FY25).

  • Revenue Growth: Total revenue increased by 11% YoY to AUD 338.9 million, driven by record flight hours and the addition of four operational aircraft.
  • EBITDA Surge: EBITDA grew 25% annually to AUD 101.2 million.
  • Net Profit Growth: Net profit after tax (NPAT) rose 10% YoY to AUD 28.9 million, compared to AUD 26.3 million in FY23.

Shareholder Confidence

On 13 February 2025, the company announced that director James Jackson acquired an additional 9,500 shares for a total consideration of AUD 24,795, and on the same day, director Scott McMillan purchased 70,000 ordinary shares for AUD 181,646.64.

Outlook

AQZ anticipates further fleet expansion in FY25 with the deployment of its final wet lease aircraft to Qantas and the addition of another dry-lease aircraft. Furthermore, the Rockhampton maintenance facility is expected to boost both financial and operational efficiency.

The company also plans to invest in new technology to drive growth while maintaining a strong focus on cost control to sustain profitability. Additionally, AQZ foresees improved aviation services trading in the second half of the fiscal year, leveraging its asset base to explore new opportunities.

Share performance of AQZ

AQZ shares closed 3.54% lower at AUD 2.45 per share on 17 February 2024. Over the past year, AQZ’s share price has dropped by almost 16.67% and in a month, it has decreased by nearly 13.43%.

52-week high of AQZ is AUD 3.20, recorded on 3 June 2024 and 52-week low is AUD 2.48, recorded on 13 February 2025.

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 February 2025. The reference data in this report has been partly sourced from EODHD/Others.