Alliance Aviation Services says the focus on the year ahead will be growing its non-mining flying after reporting a return to profitability in 2015/16.
The charter and fly-in/fly-out operator said net profit for the 12 months to June 30 2016 came in at $13.5 million, compared with a statutory net loss of $36.6 million in 2014/15 when the company wrote down the carrying value of its fleet in response to changing market conditions.
Profit before tax came in at $13.5 million, compared with a $39.3 million loss in the prior year, Alliance said in a regulatory filing to the Australian Securities Exchange on Thursday.
Revenue declined 9.3 per cent to $182 million. This was due to a reduction in the price of fuel during the year, given fuel savings and increases were passed through to customers in most of Alliance’s long term contracts.
Alliance said the company was in the midst of a transition into a “broad based aviation business” with a diversified revenue stream that covered charter opportunities in tourism, aircraft sales, wet and dry leasing and spare parts sales.
“This result has been driven by continued cost control and the diversification of revenue streams,” Alliance said.
“The financial outlook for Alliance for the year ended 30 June 2017 is one of opportunity. Whilst contract revenues remain stable, Alliance has continued to restructure its business, diversify its revenue and operate in new ways to grow the business.”
The company said the acquisition of 21 Fokker 100 and Fokker 70 aircraft from Austrian Airlines that was announced in November 2015 had “positioned Alliance to derive significant revenue opportunities from aircraft and spare part sales together with wet and dry leasing opportunities in a number of countries”.
In July, Alliance said it had delivered the first of three aircraft due to be handed over to QantasLink during the first half of 2016/17. The Fokker 100 VH-NHA previously operated with an Austrian subsidiary.
Alliance said discussions with Virgin Australia about a proposed strategic partnership, which was first announced in February, were continuing.
“Once this agreement is finalised it will provide further opportunities to Alliance,” the company said.