• Operational performance remains resilient and long-term fundamentals remain sound
• New Board and management focused on executing near-term priorities to improve performance
• Seeking to renegotiate a major wet lease contract to address rising industry cost pressures

The Chair's address to shareholders provides an overview of Alliance Aviation Services' performance and outlook. The key points highlighted include:- Operational performance remains resilient and the long-term fundamentals of the business remain sound. The book value of the fleet is supported by an independent third-party valuation as of 30 June 2025.- The new Board and management team are focused on executing near-term priorities to improve performance, including optimizing the core business, freeing up capital through the sale of excess assets, and renegotiating key contracts to reflect industry cost pressures.- The company is seeking to renegotiate a major wet lease contract signed in 2021 to address repricing mechanisms that do not reflect industry-wide cost inflation, as well as the impact of COVID-era asset pricing and a growing cost base.- The company maintains a strong financial position, with total assets of $1,218.9 million, net tangible assets of $473.3 million, and net debt of $436 million as of 31 October 2025. The company remains compliant with all banking covenants.- The Board and management are taking decisive action to remediate financial performance, including engaging with ACMI customers, reviewing non-core assets, implementing new systems and purchasing processes, and conducting comprehensive reviews of capital expenditure and operating costs.

FY26 EBITDA: $190-$210 million FY26 EBIT: $77-$85 million FY26 PBT: $46-$50 million FY26 capital expenditure and depreciation review ongoing, with potential to extend useful life of assets to reduce annual depreciation charge. $15 million increase in year-on-year maintenance capex and associated depreciation charges.

The company's long-term fundamentals remain sound, with the company being one of Australia's largest commercial aviation companies, a critical transport partner to the mining and resources sector, and having longstanding relationships with corporate and government clients. The company is focused on navigating near-term challenges, with operational performance remaining resilient and the company committed to maintaining the highest standards of customer service, safety, and on-time performance.