Alliance Aviation Services Shares Surge 30% After Qantas Deal

Shares of Alliance Aviation Services surged 30% to 78.25 cents and entered a trading halt after the company finalized a revised wet lease agreement with Qantas Airways. Under the new terms, Alliance will reduce the number of aircraft it operates for Qantas from 30 to 23 during the 2027 fiscal year to align with a decline in flying hours.

In exchange for the smaller fleet, the agreement provides a meaningful pricing increase effective July 1 and a revised annual escalation mechanism to mitigate future cost increases. Managing director Stewart Tully stated that these terms will materially improve the company's profitability, cash flow, and expected returns.

To support the transition, Alliance intends to right-size its business. This process involves adjusting its operating model and workforce through a phased employee consultation process.