Alliance Aviation Services Limited expects resource sector revenue increase

Alliance Aviation Services Limited reported (20-Mar-2020) the following market updates due to coronavirus:

• Contract revenue:
  • Resource sector: Schedule frequency increasing as customers deal with impacts on their workforces. Alliance expects an increase of 70% to 80% of total revenue as a result of these changes;
  • Inbound tourism: Reduction in the number of services operated by the company for tourism clients:
• Wet lease: Virgin Australia requested to reduce the minimum number of wet lease hours operating in 2020, with a reduction of up to 2000 hours;
• Charter revenue: Discretionary travel reduced with increased new opportunities from coronavirus;
• Aviation services: The carrier expects the H2FY2020 contribution to be marginally less than the first half;
• Regular public transport: The carrier expects a 30% reduction for the remainder of 2020. The continuation of services from Brisbane to Gladstone, Bundaberg and Port Macquarie is under review. [more - original PR]