Alliance Airlines (QQ, Brisbane International) will reduce the number of aircraft committed to Qantas (QF, Sydney Kingsford Smith) under their wet-lease agreement from 30 to 23 during the 2027 financial year, ending June 30, 2027, the carrier stated in an Australian Securities Exchange filing.

The staged reduction follows a planned decrease in flying hours, lowering committed capital and freeing aircraft for other opportunities. The revised contract includes higher pricing effective July 1, 2026, alongside a new annual escalation mechanism to offset future cost increases.

"This agreement improves the expected returns and cash flow for Alliance and demonstrates the strength of our partnership with Qantas," managing director Stewart Tully said. The company expects the revised terms to improve its profitability.

While Alliance Airlines did not specify the wet-leased aircraft type, previous ch-aviation reporting shows that the operator provides thirty E190s to Qantas. Qantas increased the commitment to the current number after exercising its final four options in 2024.

Alliance Airlines operates a fleet of 78 aircraft, comprising forty-three E190s, twenty-three F100s, and twelve F70s.

Business reorganisation

Alliance Airlines will adjust its workforce and operating model to match the reduced flight schedule. The carrier plans phased employee consultations over the coming months but did not disclose how many positions could be affected.

The airline expects an underlying pre-tax profit of AUD37.5 million Australian dollars (USD26.4 million) for FY26, which ended June 30, 2026. It will disclose the full financial impact of the revised agreement when releasing its FY26 results on August 25, 2026.

In November 2025, Alliance undertook a review of its wet-lease contracts and business model due to rising aircraft acquisition, maintenance, and logistics costs eroding its earnings outlook.

Separately, QantasLink (QLK) took its first in-house E190 in June 2026. Alliance Airlines did not say whether that programme had affected the revised wet-lease requirements.