Alliance Airlines clarifies Qantas deal after ASX trading halt

By Andrew Curran.

Alliance Aviation Holdings Limited, trading as Alliance Airlines, has clarified its August 5 market announcement regarding a revised wet-lease agreement with Qantas and other organisational changes. The clarification followed a request from the Australian Securities Exchange (ASX) and a temporary trading halt.

Last week, Alliance said it had reworked its wet-lease agreement with Qantas, under which the number of Embraer E190s flown for Qantas will be reduced from 30 to 23 over the next 12 months, among other changes. Alliance Airlines said the revised arrangements were expected to "deliver a material improvement” in its profit.

When the market opened the following morning, August 6, Alliance's share price jumped 38% before trading was halted after the ASX requested further details about the expected material improvement in profit.

"In connection with the revised agreement, there will be associated operational initiatives and organisational changes at Alliance, which include right sizing the business," an August 7 clarification from Alliance Airlines reads.

Revised wet leased agreement part of bigger picture changes at Alliance

The initial filing noted that jobs were likely to be lost at Alliance Airlines because of the organisational changes, although it did not specify how many. It said only that there would be a "phased consultation process with its workforce over the coming months".

As of December 31, 2025, Alliance Airlines employed 1,429 people.

In its clarification, Alliance Airlines said the financial impact of the revised wet-lease agreement "cannot be considered in isolation".

In addition to reducing the number of aircraft flying for Qantas, Alliance also negotiated a price increase backdated to July 1, 2026, along with a new annual price escalation mechanism designed to better reflect future cost increases.

"The financial performance of Alliance will also depend on the impact of the associated operational initiatives and organisational changes," the clarification adds.

Alliance Airlines' fleet comprises 85 aircraft, although not all are in service and several are being sold or broken down for parts. The fleet includes twelve F70s, twenty-two F100s and fifty-one E190-100s.

In the six months to December 31, 2025, Alliance Airlines derived 41.4% of its revenue from closed charter (FIFO) flying and 46.1% from wet-lease operations. During the same period, the company posted a statutory loss of AUD105.8 million (USD74.8 million),

Alliance issues profit guidance for FY2027

In its initial filing last week, Alliance reaffirmed its previous guidance that underlying profit before tax for the 12 months to June 30, 2026, was expected to be between AUD35 million and AUD40 million (USD24.7 million–USD28.3 million).

In its clarification, the airline also issued its first guidance for the current financial year ending June 30, 2027. While the guidance remains subject to various assumptions and risks, Alliance expects to report underlying profit before tax for FY2027 of between AUD55 - AUD60 million (USD38.9 – USD42.4 million).

This guidance is based on current assumptions, including the benefits of the revised Qantas wet-lease agreement and the timing of other associated operational initiatives and organisational changes.

Trading in Alliance Aviation Holdings Limited shares is expected to resume when the market opens on August 10.

Photo: Aero South Pacific.
Contact the writer: andrew@aerosouthpacific.com