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Alliance has halted trading on the ASX as it considers a recapitalisation plan.
The charter and FIFO carrier requested the trading halt on Monday morning, to last until Wednesday or until an announcement is made about capital raising, following reports in The Australian Financial Review over the weekend that a plan may be in the works.
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According to the AFR, investment banker Barrenjoey Capital Partners was setting up meetings last Friday with equities investors, with a cash call potentially to be announced this week.
“Alliance confirms that while it is contemplating a capital raising, a final decision has not yet been made to proceed with a capital raising,” the company told the ASX in a statement.
“The trading halt is requested pending an announcement relating to the potential capital raising and is required to ensure that Alliance securities are not trading on a misinformed basis.”
It comes after Alliance appointed aviation veteran Steven Greenway as its new CEO following the exit of Stewart Tully, as well as the scaling-back of its E190 wet-lease contract with QantasLink.
Alliance earlier this month told the ASX there will be a “staged reduction from 30 aircraft to 23 aircraft [in the QantasLink agreement] over the course of FY27”, as well as a “meaningful increase in pricing” and a revised annual price escalation mechanism.
“This agreement improves the expected returns and cash flow for Alliance and demonstrates the strength of our partnership with Qantas,” said Tully at the time.
“Alongside the broader actions announced today, the revised agreement represents an important early step in our transformation program, which is required to improve Alliance’s operational and financial resilience and position the business for sustainable long-term performance.”
The renegotiation of the contract was signalled late last year due to unexpected high costs; the company had recorded a $105.8 million loss in the back half of 2025, having written down the value of its ageing Fokker 70 and 100 jets.
According to Alliance, its profitability in the first half of the financial year was impacted by “a major wet-lease customer arrangement which is currently in the process of being negotiated, higher than expected maintenance costs, and costs associated with the AVIAN program implementation”.
The carrier had previously signalled a downgrade in its forecast EBITDA for the year to around $190-$210 million.
Its full-year results are expected on Wednesday.
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