Alliance, Australia’s third-largest airline, is selling two multimillion-dollar airport hangars with direct runway access at Brisbane Airport.
The airlines shares are currently trading around 59 cents per share, down from $2.85 a year ago.
Alliance has been taking on the impact of inflation because its main ACMI (Aircraft, Crew, Maintenance, and Insurance) contracts, likely with QantasLink, don’t have strong enough pricing provisions to pass rising wages and operating costs onto customers.
They recently reported a significant statutory loss of $105.8 million for the first half of the 2026 financial year. This downturn is primarily driven by a massive one-off write-down and escalating operational costs that have outpaced revenue growth. The largest factor was a $164.8 million non-cash impairment on its ageing Fokker 70 and Fokker 100 aircraft. As these jets approach the end of their useful lives, their book value was significantly reduced.
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Repair, maintenance, and logistics costs have been running about $1 million over budget each month, mainly due to global supply chain inflation and inefficiencies in the aviation industry. Alliance runs a sizable fleet of Fokker F70, F100, and E190 aircraft, with plans to gradually shift to Embraer jets. Qantas has held a 19.9% stake since 2019.
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