At least one airline is doing well, and staff share in the success
Alliance Airlines is expecting a pre-tax profit of $40 million this year as it capitalised on a surge in demand, particularly from the resources sector.
in comparison its pre-tax profit for the first six months was $15.5 million and the company said the performance was an āexceptional resultā, but warned tourism flights would probably not resume in full until āat least 2022ā.
It has also announced it will give away $1000 in shares to each of its employees because of their work during the pandemic.
The companyās balance sheet was already in an excellent position before COVID-19, and the extra cash generated by the increase in the forecast result will further enhance the already strong net debt and balance sheet position, it told investors.
āThe swift and flexible response has seen Alliance capitalise on additional demand for flights in the resource sector and, particularly, increases in flight schedules of contracted clients,ā it said.
During this time, Alliance has also attracted a number of new resource sector clients.
Allianceās wet lease agreement with Virgin was still in place but suspended and Alliance was not expecting any wet leasing activity for the remainder of 2020 and was anticipating limited demand for these services in 2021.
It said it had experienced a substantial increase in demand for charter services and expected to deliver its strongest charter revenue result in many years.
Stay informed, daily
āThe additional demand is being driven by a combination of social distancing and a lack of availability of scheduled flights by other operators.
āAllianceās operational expertise and flexible approach has seen a significant number of new resource sector clients take up charter services and the expectation is that this level of revenue will continue through 2021.
āThe impact of COVID-19 has been unprecedented and one of the reasons that Alliance has been able to continue its excellent financial performance, during this time, is its staff.
āOn that basis, in recognition of their exceptional performance, flexibility and ongoing contribution to the success of the company, eligible employees will be offered free shares to the value of $1000.ā
Want to see more stories from InDaily Qld in your Google search results?
- Click here to set InDaily Qld as a preferred source.
- Tick the box next to "InDaily Qld". That's it.
