Alliance Aviation Services posts $106m first-half loss amid Fokker fleet impairment
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The news: Alliance Aviation Services has swung to a $105.8 million loss after taking an impairment to its Fokker fleet and facing “margin pressure from a commercially unviable arrangement” with a major wet-leasing customer.
The numbers: The swing to a loss came despite revenue increasing by 7.9% to $359.3 million compared to the previous comparable period.
Alliance Aviation Services posted an $5.8 million cash outflow, which was 61.6% less year on year. Statutory net cash out flow however was $38.1 million, which was lesser than the $103.5 million in the previous corresponding period.
FY26 profit before tax guidance has been revised to between $35 million and $40 million, down from the range between $46 million and $50 million that was announced to the market in November 2025.
The context: Alliance Aviation Services is in the midst of negotiations regarding the commercially unviable arrangement.
The company also took a $164.8 million impairment and write-down on the value of its Fokker fleet and inventory due to the “subdued financial performance”, according to Alliance managing director Stewart Tully.
Tully said the company’s immediate priority is “the disciplined execution of the operational turnaround plan to improve capital allocation, profitability and cashflow generation, and strengthen the balance sheet”. It is undertaking an organisation-wide cost review.
The source: ASX
