Alliance sees profit in ditching tourism for FIFO and charters
Alliance Aviation has reported a full-year profit of $52.2 million, as the company said its decision to ditch a tourism contract for more profitable work paid off.
Alliance has benefitted from a strong market in FIFO and charters (Photo supplied)
Revenue from operations was up 40 per cent and its EBITDA rose 157 per cent as revenues from its fly-in, fly-out operations to Australian mining operations increased 15 per cent.
Despite the profit performance, Alliance said it would hold on to its cash rather than pay a dividend.
“During the year Alliance made a strategic decision to relinquish its major inbound tourism charter contract so that aircraft could be deployed on more profitable operations,” the company said.
“As a result of the continued growth in activity in both contract charter and wet lease operations, there has been minimal idle capacity to be able to service a number of ad-hoc charter services. Alliance expects that his will continue in the near term.”
Alliance said its Rockhampton maintenance facility had been completed with $17.8 million spent in the year.
Wet leasing, in which it supplies aircraft and crew, was booming for the company. It increased wet leasing hours by 80 per cent.
It also provided additional capacity to existing charter customers.
It said its focus for 2024 was to ensure wet lease aircraft were deployed on time and profitably. It also would receive another 20 of the E190 aircraft and pursue all opportunities in the FIFO market.
