Alliance Aviation Services reports stronger first half revenue and profits on more flying

    Alliance Aviation Services reported (07-Feb-2018) the following key highlights for its H1FY2017/2018 results:

    • Revenue of AUD117.2 million (USD91.6 million), +16.6% year-on-year.
      • Contract revenue met expectations with incremental increases in flight schedules for a number of clients;
      • Charter revenue improved in the latter part of the period, with a number of short-term contracts won;
      • Wet lease revenue was AUD13.0 million (USD10.1 million), up 116.7% as a result of the additional flying hours that were introduced during the course of FY2017. Alliance continues to provide contracted wet lease services to Virgin Australia and ad-hoc wet lease services to a number of other domestic carriers;
      • The three Regular Passenger Transport routes that commenced operation in Jul-2017 are performing as expected;
    • “Strong” statutory profit before tax of AUD10.3 million (USD8.1 million), up 18.4%. Profit increase was predominately generated through an increase in flying activity;
    • Operating cash flows of AUD21.3 million (USD16.6 million), +23.8%. Stronger cash flows allowed for continued debt reduction of AUD6 million (USD4.7 million) in the period;
    • Capital expenditure of AUD12.9 million (USD10.1 million), which included AUD8.2 million (USD6.3 million) to introduce additional aircraft into service and components that are available for lease;
    • Declared a fully franked interim dividend of AUD0.025 (USD0.0.0) per ordinary share for six months to 31-Dec-2017;
    • Improved financial performance and outlook of the Group has enabled the core debt facility to be refinanced with the group’s existing financiers for a three year tenor on improved terms;
    • Paid the final Austrian aircraft settlement during Jan-2018.  [more – original PR]