Alliance Aviation Services (ASX:AQZ) negotiated materially revised terms for its wet lease agreement with Qantas Airways (ASX:QAN) and outlined a business realignment plan to match the reduced fleet and flying requirements under the updated arrangement, according to an Australian bourse filing on Wednesday after market hours.
The key changes include a pricing increase from July 1, an amended annual price escalation mechanism, and a staged reduction in the contracted fleet to 23 from 30 aircraft during fiscal 2027, lowering the company's committed capital and freeing aircraft for other opportunities, per the filing.
In addition, Alliance Aviation will resize its workforce and streamline operations to align with the revised contract, the filing said.
The company reaffirmed its fiscal 2026 underlying profit before tax guidance at the midpoint of AU$35 million to AU$40 million, the filing added.