Alliance Aviation is seeking to renegotiate a contract with a major airline, citing unprofitability. The regional wet lease provider reported a net loss of $105.8 million for the first half of 2026, prompting the company to address the concerning agreement. Alliance Aviation provides aviation services, including wet leasing, charter flights, and aircraft sales. It primarily serves the resource industry and tourism sectors with its fleet of specialised aircraft.
Chief Executive Officer Stewart Tully stated that discussions are underway with the customer, believed to be Qantas, to secure a commercial outcome that aligns with the actual operational costs of the aircraft and ensures a satisfactory return. Tully emphasised the necessity of achieving mutually agreeable terms to rectify the financial strain imposed by the current contract.
Tully informed investors that the company is actively evaluating alternative options if a revised agreement cannot be reached. While he did not elaborate on the specific nature of these alternatives, his statement indicates a proactive approach to mitigating potential risks associated with the unprofitable contract. The outcome of these negotiations will likely have a significant impact on Alliance Aviation’s financial performance in the coming periods.
