Alliance Aviation Services Limited retains positive outlook for FY2020

    Alliance Aviation Services Limited announced (05-Feb-2020) it retains a positive outlook for FY2020 based on a strong first half and opportunities for growth and improvements in the second half. Key details include:

    • Contract revenue is expected to increase as existing mining and resource sector clients continue to request additional capacity. Contracted impacted tourism may be affected;
    • Charter sector is expected to be stable;
    • Contracted wet lease hours expected to be stable. Opportunities exist in ad-hoc wet lease flights;
    • Aviation services continue to contribute high margin sources of revenue to Alliance. Continued opportunities in the sale of parts and components, other engineering services and aerodrome management to add value to Alliance;
    • Free cash flow to continue to be strong due to be strong due to cessation of aircraft and spares acquisitions and low expenditure being incurred on base maintenance and entry into service maintenance checks.