Half Year 2025 Alliance Aviation Services Ltd Earnings Call Transcript
Key Points
- Alliance Aviation Services Ltd (ASX:AQZ) reported record revenue of $339 million, up 11% compared to the same period last year.
- Earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 26% to $101.2 million.
- The company expanded its fleet to 76 aircraft, an increase of 6 aircraft from the previous period.
- Wet lease revenue grew by $32 million, up 25%, due to increased partnerships with Qantas and Virgin.
- Alliance Aviation Services Ltd (ASX:AQZ) successfully raised $150 million to support its business expansion and acquisition program.
- The company experienced a significant increase in labor costs due to enterprise agreements, impacting the cost base by 7.5% to 8%.
- Net debt increased from $306 million to $425 million, primarily due to aircraft acquisitions.
- On-time performance fell short due to industrial action, ground damage, and weather events.
- The cessation of the Rolls-Royce engine program may impact future maintenance capabilities.
- Shareholders expressed concerns over the lack of dividends despite the company's financial performance and franking credits.
Good morning.
It's Stewart Tully, Chief Executive Officer of Alliance Airlines.
Thank you for joining the results presentation for the half year 31 December 2024.
Joining me today is Scott McMillan, our managing director to my left and to my right is our Chief Financial Officer Andrew Evan.
This morning, we will walk through the results presentation, which is available on the ASX website. And at the end of the presentation, there'll be an opportunity for questions and answers.
I'll hand over to Andrew now to kick off the discussion.
Thank you. Good morning, everybody. Slide 2, please.
Hope everybody can see flight too. So, as it says there, we had, very strong revenue and profit, results on the back of, increased flight hours as we, as we've added the aircraft to our, operating fleet. All numbers are comparative to the same 6-month period to December 23.
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