Insights

Alliance (ASX:AQZ) share price edges lower despite positive update

The Alliance Aviation Services Ltd (ASX: AQZ) share price is backtracking today despite releasing an positive update. Here’s what the company announced.
The post Alliance (ASX:AQZ) share price edges lower despite positive update appeared first on The Motley Fool Australia. –

airplane on the ground at airport terminal

The Alliance Aviation Services Ltd (ASX: AQZ) share price is slightly in negative territory during mid-afternoon trade. This comes despite the company announcing an update to its wet lease agreement with Qantas Airways Limited (ASX: QAN).

At the time of writing, the aviation services company’s shares are selling for $4.17, down 0.4%.

What did Alliance announce?

Investors appear unfazed by the company’s latest announcement, sending Alliance shares lower.

According to its release, Alliance advised that Qantas has exercised its option to call up 5 additional Embraer E190 aircraft. This follows a wet-lease agreement signed in early February, enabling Qantas to lend 11 aircraft based on market conditions.

Previously, Qantas asked Alliance for 3 E190 aircraft to service its route network, which is expected to commence 25 May.

However, with today’s update, Qantas will now take delivery of 8 aircraft. The E190 planes will be based in Adelaide and commence operating from 21 June 2021 onwards. Qantas recently created a new Adelaide-Gold Coast route which will service 4 times per week, beginning 25 June.

The planes are expected to compete for market share against Regional Express Holdings Ltd (ASX: REX) and ASX-delisted company Virgin Australia.

Alliance managing director, Scott McMillan welcomed the extended agreement, saying:

This is an exciting development for Alliance and further extends on previous wet leasing arrangements that Alliance has had with Qantas.

The extension of the arrangements with Qantas is also further confirmation that the E190 is the perfect aircraft to take advantage of the new route network that is developing in the post- COVID aviation recovery.

Each option has an initial 3-year period, with the remaining aircraft available at Qantas’ disposal.

About the Alliance share price

In the last 12 months, Alliance shares have climbed to register a 100% gain, with year-to-date performance just below 10%. The company has been on an upwards trajectory citing a recovery in the aviation sector from COVID-19.

At today’s prices, Alliance has a market capitalisation of roughly $670 million, with approximately 160.4 million shares on issue.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Alliance (ASX:AQZ) share price edges lower despite positive update appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!