News: AQZ Alliance Aviation Services Sees High Level Of Profitability For FY20 & Beyond

March 20 (Reuters) - Alliance Aviation Services Ltd (AQZ) :

• REQUESTED BY VIRGIN AUSTRALIA TO REDUCE MINIMUM NUMBER OF WETLEASE HOURS IT OPERATES DURING 2020
• IN FY20, MAY REPORT LOWER THAN FY19S PROFIT BEFORE TAX
• DURING 2HFY20 ALLIANCE HAS REDUCED STAFF NUMBERS BY 37 AND A RECRUITMENT FREEZE HAS BEEN IMPLEMENTED
• NO NEGATIVE IMPACT DUE TO COVID-19 ON SERVICES OPERATED FOR MAJOR MINING CUSTOMERS
• STILL EXPECTS TO SUSTAIN A HIGH LEVEL OF PROFITABILITY FOR FY20 AND BEYOND
• EXPECTS A REDUCTION IN RPT SERVICES FOR REMAINDER OF CY20 IN ORDER OF 30%
• REDUCTION TO MINIMUM NUMBER OF WETLEASE HOURS WILL HAVE IMPACT ON 2HFY20 EARNINGS
• PERFORMANCE INCENTIVE PROGRAM APPLICABLE TO SENIOR MANAGEMENT TEAM HAS BEEN SUSPENDED FOR FY20
• DECIDED TO CANCEL INTERIM DIVIDEND DECLARED ON 5 FEB
• FOR RESOURCE SECTOR THERE NO NEGATIVE IMPACT DUE TO COVID-19, PREDICTS CONTRACT REVENUE WILL RISE TO 70%-80% OF TOTAL REVENUE
• PERFORMANCE INCENTIVE PROGRAM APPLICABLE TO SENIOR MANAGEMENT TEAM SUSPENDED FOR FY20
• NET EFFECT OF FLEET CHANGES WILL RESULT IN A TOTAL OPERATIONAL FLEET NUMBER OF 42 AT END OF FY20
• CO'S CURRENT FLEET PLAN DOES NOT FORESEE ANY SIGNIFICANT CHANGE TO PREVIOUS CAPEX GUIDANCE
• EXPECTS 2HFY20 CONTRIBUTION FROM AVIATION SERVICES TO BE MARGINALLY LESS THAN H1

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