Alliance Aviation Services (ASX:AQZ) provided preliminary fiscal 2027 guidance for underlying profit before tax of about AU$55 million to AU$60 million following its revised wet lease agreement with Qantas Airways (ASX:QAN), according to a Friday filing with the Australian bourse.
The company said the impact of the revised agreement on its financial performance cannot be considered in isolation as its results will also depend on the outcome of associated operational initiatives, which include a right sizing of the business.
The revised agreement disclosed Aug. 5 is expected to deliver a material improvement in Alliance Aviation's profitability.
The company said its fiscal 2027 outlook remains subject to a range of assumptions and risks, including customer demand, fuel costs, labor availability, and broader economic conditions.