Alliance and Qantas Revise Wet-Lease Agreement, Reducing Fleet Commitment

Alliance Aviation Services and Qantas have agreed to revise their long-term wet-lease agreement, introducing improved commercial terms while reducing the number of aircraft committed to the partnership.

Under the revised agreement, Alliance will receive a meaningful increase in pricing effective July 1, 2026, along with a new annual price escalation mechanism designed to better reflect future cost increases. The agreement also reduces the number of aircraft dedicated to the contract from 30 to 23 during FY2027, reflecting lower planned flying hours and freeing aircraft for alternative opportunities.

Alliance said the revised agreement is expected to materially improve profitability and cash flow while strengthening its long-term partnership with Qantas. Managing Director Stewart Tully said the new terms represent an important step in the company’s broader transformation program to improve operational and financial resilience.

To align with the lower flying requirements, Alliance will begin a phased consultation process with employees and adjust its workforce and operating model over the coming months while continuing to prioritize safety, regulatory compliance and operational performance.

The company also reaffirmed its FY2026 underlying profit before tax guidance, expecting results to be at the midpoint of its previously announced range of A$35 million to A$40 million. Alliance said it will provide additional details on the financial impact of the revised agreement when it releases its FY2026 results on August 25, 2026.