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Alliance Aviation Services (ASX: AQZ) felt the wind beneath its wings this past financial year.
The charter flight company favoured by Aussie fly-in fly-out (FIFO) workers reported a FY19 record profit of $32.8 million, an impressive 25.7 per cent lift on FY18.
More than 38,000 flying hours across a fleet of 38 aircraft also supported a revenue of $277.1 million, up 11.9 per cent.
According to Alliance, its success is largely due to a healthy contract retention rate as total contract revenue accounted for 40 per cent of the overall increase this year.
CEO Lee Schofield says achieving the best financial result in the company's history is only the beginning.
"This financial result is underpinned by the continued focus of all Alliance employees on ensuring the safe, on time and cost-effective provision of services to all of our clients," he says.
"Whilst we have announced the best financial result in the company's history, we will continue to focus on financial and operational growth as this continues to be an important part of our strategy."
Alliance recently acquired a further five Fokker 100 aircraft which Schofield says will add significant value to the business.
In the year ahead, Alliance expects scheduled services will grow for several resource clients as commodity prices and mine production levels increase.
Alliance also plans to grow its tourism footprint and will commence flights into Western Australia from Victoria in the coming year.
The company has declared a fully franked dividend of 8.8cps to be paid on 14 November.
The strong performance comes as Alliance is the subject of a takeover from airline giant Qantas (ASX: QAN).
The deal is currently in question from the ACCC which noted some red flags relating to certain transport routes only travelled by Qantas and Alliance last week.
The ACCC says that Alliance is Qantas' only competitor on regular passenger transport routes between Brisbane and the regional centres of Bundaberg and Gladstone, sparking the commission's concerns.
The watchdog is now accepting comments from customers and competitors about the effects of Qantas' $60 million acquisition of 19.9 per cent of Alliance.
AQZ shares are currently priced at $2.75.
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