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Alliance Airlines has completed a $40 million capital raising flagged in its annual results.
The FIFO and charter operator has finished both the institutional and retail components of the equity raising after it recorded a $38.2 million underlying pre-tax profit, but a $90 million statutory loss, for the 2025–26 financial year.
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“We are pleased to have completed the final stage of our capital raising, with a total of approximately $40 million in new funds significantly strengthening our balance sheet as we execute our turnaround strategies,” said chairman James Jackson.
“I thank the many shareholders who took up their entitlements and applied for additional shares. Their support remains vital to the company’s ongoing success.”
The retail component of the capital raising came after the institutional component closed last month, having raised around $33 million.
“A total of 9,915,132 new shares, representing $6.9 million, were available under the retail entitlement offer,” Alliance said.
“The company received applications from a total of 113 eligible retail shareholders who subscribed for 909,226 new shares, including applications under the top up facility. This represents a take-up rate of approximately 10.6 per cent, raising approximately $636,000.
“The remaining 9,005,906 new shares not taken up by eligible retail shareholders under the retail entitlement offer will be allotted to the sub-underwriters.”
The news comes as Alliance scales back its Embraer E190 wet-lease agreement with QantasLink, which will go from 30 aircraft to 23.
According to the airline, full-year 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.
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.
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.
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