Alliance Aviation Services and Qantas have revised their long-term wet-lease agreement, reducing the number of Embraer E190 aircraft committed to the deal from 30 to 23 in FY2027. The updated terms also lift pricing under the contract, while keeping the partnership in place across Alliance’s Australian operations.
The changes take effect from 1 July 2026 and include an annual escalation mechanism intended to better reflect future costs. Alliance said the revised structure should support profitability, cash flow and longer-term returns after describing the previous commercial terms as a drag on performance.
The fleet cut removes seven dedicated aircraft from the arrangement and will trigger a phased consultation process with employees as Alliance adjusts its workforce and operating model. The company expects to provide further detail on the financial impact when it reports full-year 2026 results on 25 August. Alliance also reaffirmed its underlying profit before tax guidance for FY2026 at the midpoint of A$35 million to A$40 million.