Australia’s Alliance sees half-year profit triple as wet-lease contracts grow

Charter operator Alliance Aviation recorded a three-fold jump its half-year profit, helped by a sharp rise in contracted wet-lease activities. For the six months to 31 December 2023, the company posted a statutory pre-tax profit of A$37.7m, significantly higher than the A$9.5m in the year-ago period. Operating revenue for the half-year rose 27% to A$299m, led by “significant growth” in wet-lease revenue, which doubled year on year, offsetting a decline seen in its aviation services business. Its major customer is national carrier Qantas, which has a contract to wet-lease up to 30 Embraer E-190s for domestic and short-haul operations. Qantas also has options to take another three E-190s by end-June, with one more in July. On its resources charter operations, Alliance managing director Scott McMillan adds: “Contract charter provides the foundation for fleet expansion activities, with increased activity in the half year. Our market leading on time performance coupled with our ability to react quickly to capacity demands is our competitive advantage.” Still, it warns that its operating expenses “continue to be impacted” by inflation, supply chain woes, as well as other economic challenges. Alliance adds: “The group continues to focus on managing these challenges as they arise however some recent contract negotiations have resulted in increases to the cost base and passed through where contracts allow.” <br/>