The Alliance Aviation Services Ltd (ASX: AQZ) share price is drifting lower in Monday trade, extending a difficult run for the regional aviation operator.
At the time of writing, the Alliance Aviation share price is down 0.85% to 58.5 cents.
The stock has had a rough start to the year and is now down more than 50% in 2026. It is currently trading near its lowest level in almost a decade.
The latest move comes as fresh insider buying has emerged from within the company's leadership ranks.
Let's unpack.
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Chairman buys shares on market
According to a recent filing, Alliance Aviation Chairman James Jackson has been purchasing shares on market this month.
The disclosure shows that Jackson acquired 50,000 ordinary shares at 59.8 cents each on 13 March.
The purchase was made through an indirect holding associated with Federal Pacific Holdings Pty Ltd, an entity where Jackson is a director.
Following the transaction, Jackson now holds:
- 100,000 shares indirectly through Federal Pacific Holdings
- 20,000 shares indirectly through Mistover Pty Ltd
- 4,050 shares directly
The filing confirmed that the shares were acquired through on market trades.
Director buying is closely watched by investors because it can indicate confidence from insiders with detailed knowledge of a company's operations.
However, the purchase also comes during a challenging period for the aviation services provider.
Shares have slumped this year
Alliance Aviation's share price has been under heavy pressure in recent months.
The stock has now fallen more than 50% since the start of 2026. Over the past 12 months, the decline has been even steeper, with the company losing a significant portion of its market value.
The company currently has a market capitalisation of about $94 million and roughly 161 million shares on issue.
Alliance Aviation operates a fleet of aircraft providing contract, charter, and allied aviation services to the mining sector and major airlines across Australia.
Its business model includes fly in, fly out services for resource companies as well as aircraft leasing and wet lease arrangements with airlines.
Challenges continue to weigh on the business
Recent financial results highlight the pressures the company is facing.
Alliance Aviation reported a statutory loss of $105.8 million for the first half of FY26. The loss reflected a $164.8 million write down related to the value of its Fokker aircraft fleet and inventory.
Management also warned that its wet lease arrangement with Qantas Airways Ltd (ASX: QAN) had become commercially unviable under existing terms.
Negotiations with Qantas are currently underway as the companies work to restructure aspects of the agreement.
The company has previously been linked to takeover interest. Qantas once sought to acquire the business in a $611 million deal, but the proposed transaction was blocked by the Australian Competition and Consumer Commission (ACCC).
Alliance Aviation shares remain under pressure as investors weigh the company's financial performance and ongoing strategic negotiations.
