Alliance Aviation Posts 19% Revenue Rise, EBITDA Hits $207 Million
Alliance Aviation Services reported a robust 19% revenue increase to $769.7 million in FY25, driven by fleet expansion and strong operational performance. The company’s strategic investments and contract growth set a positive tone for FY26.
- 19% revenue growth to $769.7 million in FY25
- EBITDA rises 16.2% to $207.3 million
- Net debt increases to $378.1 million due to Embraer E190 acquisitions
- Flight hours up 8.7%, with 97.3% under long-term contracts
- Qantas wet lease program reaches 30 aircraft in operation
Strong Financial Performance Amid Fleet Expansion
Alliance Aviation Services has delivered a solid financial performance for the fiscal year ending June 2025, with revenue climbing 19% to $769.7 million and EBITDA increasing by 16.2% to $207.3 million. This growth reflects the company’s strategic focus on expanding its fleet and capitalising on long-term contracts, which now cover 97.3% of flight hours.
Despite a modest 4.9% decline in profit before tax to $82.1 million, largely impacted by increased finance costs linked to aircraft acquisitions, Alliance generated a healthy operating cash flow of $105.6 million. The company’s net debt rose to $378.1 million, primarily due to the purchase of Embraer E190 aircraft, with further settlements planned for FY26.
Operational Highlights and Fleet Modernisation
Flight hours increased by 8.7% to 113,621, marking the fifth consecutive year of record activity. The company maintained an industry-leading on-time performance of 91%, underscoring operational resilience despite challenges such as weather disruptions and industrial action. The fleet now comprises 36 Fokker and 43 Embraer E190 aircraft, with the transition from Fokker to E190s in North Queensland expected to complete by October 2025, enhancing efficiency and reliability.
Alliance also expanded its infrastructure footprint by acquiring additional hangars at Brisbane Airport to support fleet growth and maintenance capabilities. The Qantas wet lease program, a key growth driver, concluded FY25 with 30 aircraft in service, positioning the company for further revenue gains in FY26.
Sustainability and Governance Initiatives
On the ESG front, Alliance is advancing fuel efficiency and emissions reduction through initiatives such as enhanced engine management, fuel analytics, and the installation of a 100kW solar array at its Rockhampton base. The company is preparing for compliance with new climate reporting standards starting FY26 and plans to release a comprehensive Climate Action Plan.
Governance improvements include board renewal with the appointment of Bernie Campbell, an experienced director in equipment finance, and the elevation of CEO Stewart Tully to Joint Managing Director. A strategic review is underway to convert recent growth into enhanced shareholder value.
Outlook and Strategic Focus
Looking ahead, Alliance anticipates continued organic growth in contract activity, particularly in Western Australia and Queensland. The first full year of Qantas wet lease operations in FY26 is expected to boost revenue and crew utilisation. The company remains committed to cost control and operational efficiency while pursuing strategic aviation services transactions to strengthen profitability and cash flow.
With operational staffing stabilised and fleet expansion progressing, Alliance is well positioned to capitalise on a strong market outlook. The completion of remaining Embraer E190 aircraft settlements in FY26 will also unlock significant cash flow, supporting further growth initiatives.
Bottom Line?
Alliance’s FY25 results set a strong foundation, but the coming year’s fleet settlements and strategic execution will be critical to sustaining momentum.
Questions in the middle?
- How will the increased net debt impact Alliance’s financial flexibility in FY26?
- What are the expected financial contributions from the full year of Qantas wet lease operations?
- How will the strategic review reshape Alliance’s growth and shareholder value creation?
