ARC NEWS
Alliance extends trading halt as it flags profit downgrade
November 04, 2025
Alliance Airlines parent company Alliance Aviation Services has extended the trading halt on its shares to 7 November as it prepares to issue a trading update that will show it missing consensus forecasts for its full-year earnings. Shares in the company have not traded on the Australian Securities Exchange since it initiated a halt on 31 October, which was initially expected to lift before trade opens on 4 November but instead it has extended the trading suspension. In a letter to the ASX, Alliance states that the suspension will allow it to meet its disclosure obligations and make a trading update, "which will likely result in Alliance's FY26 earnings being materially lower than analyst consensus estimates of Alliance's FY26 earnings". "This is a result of recent repairs and maintenance costs and depreciation charges being higher than anticipated," it adds. Ground Events data shows that the carrier had six aircraft undergo C-level and heavy maintenance checks in the six months to 31 October, and that four of its Embraer E190-E1s are expected to undergo C-checks over the next year. Alliance did not provide specific guidance when it released its 2025 fiscal year results in August but commented that it had a "solid outlook for FY26" and was shifting its emphasis towards "disciplined financial management, with a particular focus on optimising cash flow and reducing debt levels". The carrier has 39 E190s in service and nine in storage, fleets data shows, plus 20 Fokker 100s and nine Fokker 70s in service, with two and one in storage, respectively. Alliance's announcement will come ahead of its annual general meeting, which is scheduled for 27 November, and will formally see long-term joint managing director Scott McMillan step down from that role but remain in an executive capacity until July 2026.


Regional-aircraft supply issues forecast to last two years
November 03, 2025
Regional aviation has rebounded strongly since the Covid crisis, but supply-chain issues are hampering growth and will continue to do so for another year or two, speakers suggested during a recent Cirium webinar. "Recovery has been strong in 2025, and we've seen higher upswings, [but] whether that will continue in 2026 we will have to see," TrueNoord commercial chief Richard Jacobs said during Cirium's 'Regional aircraft: market dynamics in focus' webinar on 22 October. "Thus far, it's been very positive. With every aircraft – be it turboprop or large regional jet – offered for remarketing, we would've been able to place it three times over." Loganair fleet director Sylvain Gloux agrees that the market has been "recovering strongly", but notes that the recovery past 2019 levels could have been much stronger were it not for supply-chain issues. "What we've seen in the past year is a strong recovery in lease rates and values, but this is the result of limited capacity," says Gloux, although he adds that "we're now seeing some stability and we may be reaching a peak in terms of values and lease rates". The biggest issue for airlines, in his view, is a "lack of visibility" on aircraft delivery times, which makes it difficult to plan schedules with certainty. Gloux believes the supply-chain issues are stabilising rather than improving. "We see some stability going into 2026, but it will take a couple of years," he warns. There were differing views among the panellists on when supply issues for OEMs and MRO providers would be resolved. Jacobs paints the rosiest picture. By 2027, he asserts, "the worst will be behind us". Gloux says he is "less optimistic", believing that "in 2028, we will be in better shape as an industry" – a view shared by Alex Vathylakis, principal valuations analyst at Cirium Ascend Consultancy. The supply-chain challenges facing the regional aviation market are a "new reality" that will likely remain in place "for the coming years", says Vathylakis. A lack of regional aircraft replacement options is also making life difficult for operators in this space, he observes. For instance, the size of the Embraer 175 fleet in the US market has "increased strongly" over the last five or six years and this aircraft "continues to gain traction". However, this is "one of the signs there's a lack of new options", in Vathylakis's view. He notes that Embraer and ATR essentially have a monopoly in the turboprop and regional jet markets, with the ATR 72-600 "enjoying the [70-seat turboprop] market on its own" while a "lack of direct replacement options" in the 50-seat jet segment pushes operators towards larger regional aircraft which "might not work for everyone". Indeed, Gloux points out that 50-seaters "would be more suitable" for many of Loganair's routes, but such aircraft are "very difficult to find", and "the absence of replacement options in the near term is an issue". Vathylakis says "large turboprop deliveries are facing a new reality post-Covid", as an "ATR ramp-up is only expected next year" while large regional jet deliveries have "halved post-Covid". "Supply of ready-to-go turboprops remains tight with minimal availability from lessors," he adds. "It's a similar story with serviceable regional jets: supply is tight with no clear signs of improvement."


Swiss grounds entire A220-100 fleet for 18 months
November 03, 2025
Swiss has taken the decision to ground all nine of its Airbus A220-100 aircraft for 18 months and use the engines to support its A220-300 fleet. The decision was prompted by ongoing maintenance and supply issues with the Pratt & Whitney GTF engines that power the aircraft. "The ongoing global shortage of Pratt & Whitney engines and spare parts has led to the temporary grounding of several Airbus short-haul aircraft worldwide," says Swiss, adding that "there is currently no sign of the situation easing" and "forecasts suggest that it may further intensify in 2026". The airline says that to "enhance planning reliability", it has decided to "temporarily withdraw all nine of our smaller Airbus A220-100 aircraft from service for approximately 18 months". The 18 PW1500 engines from the -100s will be used as spare engines for the -300 fleet, Swiss confirms. "This process will begin in November and is expected to be completed by summer 2026, with detailed planning currently underway," says Swiss, noting that the measure will not reduce the size of its active fleet because it enables the carrier to bring grounded A220-300s back into service. "These aircraft offer greater capacity and efficiency compared to the A220-100." Four of Swiss's A220-100s are already listed as being in storage, Cirium fleets data shows. Four of the Lufthansa subsidiary's A220-300s are listed as being in storage.


LOG ON

CONTACT
SGS Aviation Compliance
ARC Administrator
SGS South Africa (Pty) Ltd
54 Maxwell Drive
Woodmead North Office Park
Woodmead
2191
South Africa

Office:   +27 11 100 9100
Direct:   +27 11 100 9108
Email Us

OFFICE DIRECTORY
Find SGS offices and labs around the world.
The ARC is a mobile friendly website.