Alliance hit with $90m statutory loss for 2025-26

According to the airline, profits were hit by “lower wet lease utilisation, commercial performance issues within key wet lease arrangements, elevated maintenance expenditure, compliance costs, AVIAN implementation costs and increased depreciation and finance charges associated with prior fleet investments”, though cost performance improved in the second half.

“FY26 was a defining year for Alliance, with the Board and management taking decisive action to reset the business and position it for stronger and more sustainable returns,” said outgoing managing director Stewart Tully.

“Following a comprehensive review of our operations, fleet strategy, capital allocation priorities and key customer contracts, we have taken significant steps to address the factors that weighed on our financial performance, including right-sizing our cost base.”

The result comes as Alliance scales back its Embraer E190 wet-lease agreement with QantasLink, which will go from 30 aircraft to 23.

“Our agreement with Qantas to revise the terms of our wet lease contract is expected to deliver a material improvement in Alliance’s profitability and represents an important step forward in Alliance’s valued partnership with Qantas,” said Tully.

“It underpins the sustainable long-term performance of our business and unlocks a number of strategic options to strengthen the company’s financial position.

VIEW ALL

>

“Our ongoing work to strengthen the balance sheet will be further reinforced by a fully underwritten $40 million equity raise.”

Alliance’s turnaround plan includes a revised fleet strategy which will phase out Fokker 100s while retaining Fokker 70s “where operationally appropriate”, and increase E190 utilisation, helped by reductions in the Qantas contract and the expiry of dry-leases, which will bring 12 aircraft back into the available fleet.

“As Australia’s leading FIFO aviation operator, Alliance’s core FIFO operations continue to perform well,” said Tully.

“Moving forward, FIFO will be our core growth platform, underpinned by our long-term customer relationships and strong demand from the Australian resources sector.

“The strategic decisions we have made, position Alliance to continue to provide industry-leading safety performance and service to our customers and deliver sustainable long-term returns to shareholders.”

The renegotiation of the Qantas contract was signalled late last year due to unexpectedly 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.

The carrier had previously signalled a downgrade in its forecast EBITDA for the year to around $190–$210 million.