Qantas to Fully Exercise Options for Embraer E190s Amid Growing Aviation Demand

Qantas is set to fully exercise its remaining four options for Embraer E190 aircraft with Alliance Airlines by the end of 2024, signaling strong confidence in the aviation sector’s growth. This decision was confirmed by Scott McMillan, managing director of Alliance Airlines, during an analysts’ briefing on August 29.

Reflecting on the strategic acquisition of thirty E190s from AerCap last year, McMillan stated, “Our commitment is proving to be a sound decision.” The bullish outlook for the aviation market is driving Qantas and Alliance to capitalize on increasing demand for aviation capacity.

Currently, Qantas holds a 19.73% stake in Alliance and operates twenty-six E190s through a wet lease arrangement. The schedule includes two more E190s arriving in September, with the remaining deliveries slated for October and December. As of June 30, 2024, Alliance had already integrated ten E190s from AerCap into their fleet, with an additional twenty expected by June 2026. The plan also includes parting out seven aircraft to support fleet maintenance and provide parts for sale to other operators.

Moreover, Alliance has expanded its fleet with the acquisition of four E190s from Azorra Aviation, all operational, and thirty-three from Jetran and Azorra. By early 2026, Alliance anticipates a total of sixty-seven E190s, although some will be sold or parted out due to high demand for E190 components.

In the financial year ending June 30, 2024, Alliance Airlines reported a profit of AUD 60.5 million on revenues of AUD 646.8 million, highlighting the profitability of their diversified operations, which include closed charter contracts, wet lease operations, and regular passenger services.

McMillan reaffirmed the airline’s growth strategy, emphasizing the expansion of both the Embraer and Fokker fleets while maintaining a strong focus on enhancing financial stability and reducing debt. This strategy positions Alliance Airlines to leverage opportunities in a dynamic market and supports Qantas’s broader goals in the aviation industry.

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Sources: AirGuide Business airguide.info, bing.com, bloomberg.com, Qantas