Alliance Aviation Services has announced a record statutory full year profit before tax (PBT) of A$48 million with an underlying PBT of A$51 million. This is an increase of 19% and 25% when compared to the previous financial year. Statutory net profit after tax (NPAT) also increased by 26% to A$34 million.
Commenting on the 2021 financial year results, Alliance’s Managing Director, Scott McMillan, stated, “Alliance has produced a record result at a time when we are investing heavily in supporting the growth of the business. The underlying business, utilising the Fokker fleet, continues to reap the benefits of past planning and investment and is the financial and operational foundation on which the E190 expansion has been built. This expansion program will provide the Company with an increase in annualised flight hours of up to 3 times by the end of FY2022.
“Due to earlier than expected capacity demand, Alliance has brought forward investment required to deploy the E190 fleet. We have and continue to recruit pilots, cabin crew, engineers, and other operational and corporate staff to support the earlier deployment of the fleet. We expect to have at least 14 E190 aircraft in service by December 2021 with the balance to be deployed by mid-2022.”
The increase in total revenue, in the year, was driven by growth in contract and charter revenues of 6% and 66% respectively. These increases more than offset wet lease and RPT revenues decreasing by 68% and 3% when compared to the previous year. Both wet lease and RPT revenues however did increase in the second half of the financial year as COVID-19 related travel restrictions eased across the country.
Alliance brought forward the E190 implementation program to facilitate the earlier deployment of aircraft. Additional operating costs, of $11.5 million, were incurred by Alliance to 30 June 2021 as a result of the E190 program.
During the year Alliance was in receipt of $8.8 million of aviation-related government assistance.
Underlying operating cash flow for the year was $75.9 million, an increase of 73% or $31.9 million when compared to the previous year.
Cash outflows for investing activities were $205.7 million for the financial year (FY2020: $30.8 million). $175.9 million was expended on the purchase of 26 E190 aircraft, base maintenance costs for nine E190 aircraft and the purchase of the E190 full flight simulator.
Fokker fleet capital expenditure was $20.5 million for the year. The balance of cash outflows was for the acquisition of Unity Aviation Maintenance Pty Ltd, and sundry support and other equipment purchases.
Alliance retains a positive outlook for the FY2022 with organic growth opportunities geographically and across the majority of revenue streams. Alliance is entering the new financial year with strong momentum and intends to build on this with the E190 fleet expansion.