Azul announces record quarterly results amid ongoing financial restructuring

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Azul announces record quarterly results amid ongoing financial restructuring

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Airbus A380 | Airbus

By Sky Industry News

Nov 15, 2024

Azul Linhas Aéreas Brasileiras (Azul) has announced record-breaking financial results for the third quarter of 2024. The airline reported an all-time high in operating revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA).

For the quarter, Azul recorded total operating revenue of R$5.1 billion ($879.9 million) and operating expenses of R$4.1 billion ($707.3 million), resulting in an operating margin of 20%. The company's EBITDA reached R$1.6 billion ($276 million), with a margin of 32.2%. Azul's net profit for the quarter was R$360.3 million ($62.1 million). However, after adjustments for unrealized derivative results and foreign currency impacts, the profit turned into a loss of R$203.1 million ($35 million). Over the first nine months of 2024, Azul reported a loss of R$4.6 billion ($793.6 million).

John Rodgerson, CEO of Azul, highlighted that these figures reflect significant recovery from Q2 when operations were affected by seasonal factors and floods in Rio Grande do Sul: “More importantly, it demonstrates the sustainability and profitability of our growth strategy.”

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The airline noted a 22.9% increase in total operating revenues quarter-on-quarter and a 4.3% rise year-on-year due to strong demand and ancillary revenues growth.

Rodgerson pointed out that rational capacity deployment helped passenger revenue per available seat kilometer (PRASK) grow by 0.3% YoY while revenue per ASK (RASK) increased by 0.6% YoY.

Azul continues to manage costs closely; cost per ASK (CASK) remained flat while CASK excluding fuel decreased by 2.8% YoY: “We are laser-focused on our efforts to drive further margin expansion.”

Alongside its financial performance update, Azul provided information on liquidity measures: “[…] Azul continues to collaboratively negotiate with its lessors, original equipment manufacturers (“OEMs”) and vendors for additional mutually-beneficial cash flow improvements.”

Despite rumors about potential bankruptcy filings like competitors GOL and LATAM Airlines did under Chapter 11 proceedings recently; various creditor deals have helped avoid such steps so far including one agreement announced October end securing $500m funding more recently finalized earlier this month - part ongoing efforts towards long-term success setting up unique business model generating growing profits alongside improving cash generation.

Rodgerson concluded expressing optimism over recent progress while acknowledging future challenges ahead stating: “I could not be more excited about steps taken support received stakeholders thank them continued confidence company.”