Alliance Aviation Services Limited (ASX:AQZ) Unveils Financial Guidance and Strategic Plans at Investor Day
Financial Update
Alliance Aviation Services Limited provided an update on their financial performance, adjusting EBITDA guidance to $205-$210.0 million and Profit Before Tax to $80-$85.0 million. The results were impacted by aircraft damage, protected industrial action, North Queensland floods, Tropical Cyclone Alfred, a four-day Brisbane Airport closure, cancellation of 272 flights, and fleet relocation.
Net Debt Outlook
The company forecasts net debt by 30 June 2025 to be between $425 million and $430 million, with a Net Debt to EBITDA ratio of 2.0 to 2.1 times. By 30 June 2026, the target net debt is $315 million to $360 million, with a Net Debt to EBITDA of 1.5 to 1.7 times.
Debt Reduction Activities
Alliance Aviation Services is maximising operating cash flow, monetising engines, aircraft, and parts inventory, consolidating infrastructure assets, and focusing on cost and capital expenditure efficiencies. These efforts aim to enable the board to consider the recommencement of dividends.
Strategic Advantages
The company’s unique competitive advantage includes ownership of an aircraft fleet, flexibility in trading, long-term international relationships, a strong reputation as a reliable supplier, in-house technical expertise, a history of repeatable transactions, and a concentration on the 100-seat market.
Fleet and Growth Strategy
Alliance Aviation Services continues to optimise their fleet with the deployment of E190 aircraft, expanding operational bases, and enhancing maintenance capabilities to support growth and operational efficiency.
ESG Commitments
The company is committed to eco-friendly initiatives, improving fuel efficiency, emissions reductions, aircraft and parts recycling, fostering social responsibility, prioritising safety, and maintaining strong corporate governance principles.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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