Fly in, fly out charter operator Alliance said its ability to adapt planes for coronavirus has helped it to increase profits this financial year by $7 million.
The business said its “pioneering” measures, including social distancing seating plans, new cleaning regimes and passenger temperature checks, have been adopted by much of Australia’s industry.
“The swift and flexible response has seen Alliance capitalise on additional demand for flights in the resource sector and, particularly, increases in flight schedules of contracted clients,” Alliance said in a statement to the ASX.
This financial year, Alliance expects to make $40 million in profit before tax, up from $32.8 million in 2019.
Its board called the result “exceptional” and said it would award most of its employees, other than senior management, $1,000 in free shares, which are now trading at a four-month high.
The business said that while inbound tourism flights were suspended, it had seen demand actually increase in the resource sector for both regularly scheduled and charter flights.
“The company has experienced a substantial increase in demand for these services subsequent to the outbreak of COVID-19 and expects to deliver its strongest charter revenue results in many years,” it said in a statement. “The additional demand is being driven by a combination of social distancing and a lack of availability of scheduled flights by other operators.”
Alliance Aviation, the parent company of Alliance Airlines, describes itself as Australia’s leading air charter service operator, providing specialised services for the resources industry, as well as inbound and domestic group travel.
It currently has a fleet of 40 Fokker aircraft, employs 500 staff and provides regular and ad hoc charter services in Australia and New Zealand.