Financial Data and Key Metrics Changes - In Q1 2021, Azul's top-line revenue grew by 2.4% to BRL 1.8 billion, with a positive EBITDA of BRL 130 million, marking the second consecutive quarter of positive EBITDA [14][15] - The company flew 23% fewer ASKs compared to Q1 2020, yet maintained flat unit costs despite a 24% year-over-year increase in fuel prices [15][16] - Total liquidity remained strong at BRL 6.3 billion, with an additional BRL 540 million accessible, bringing the total to BRL 6.8 billion [19][20] Business Line Data and Key Metrics Changes - Azul Cargo experienced a record quarter with a 63% year-over-year increase in revenues, and is projected to double revenues compared to 2019 [17][18] - The logistics market in Brazil is estimated to be over BRL 300 billion annually, with the addressable air cargo market potentially reaching BRL 45 billion [18][60] Market Data and Key Metrics Changes - Domestic demand is recovering, with a 40% increase in bookings observed as restrictions are lifted across all 27 states in Brazil [24][25] - Corporate demand has rebounded to 35%-40% of pre-second wave levels, indicating positive trends in business travel [27] Company Strategy and Development Direction - Azul aims to leverage its fleet flexibility and network advantages to capture demand as the industry recovers, focusing on sustainable growth and operational efficiency [10][12][23] - The company is committed to environmental, social, and governance (ESG) responsibilities, with plans for a sustainability report outlining targets for net-zero carbon emissions [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery trajectory, citing significant vaccination progress in Brazil and a corresponding increase in travel demand [22][23] - The company anticipates a strong recovery in domestic travel, similar to trends observed in the U.S., with expectations for improved booking volumes and fare increases [22][25] Other Important Information - Azul's fleet transformation is expected to enhance efficiency and profitability, with CO2 emissions already down 20% per ASK compared to 2016 [12] - The company has no significant debt repayments expected in the next 12 months, allowing for continued investment in growth [20] Q&A Session Summary Question: What is the current state of domestic demand? - Management noted a recovery trend in domestic demand, with bookings increasing significantly as restrictions are lifted across Brazil [24][25] Question: How is the cargo strength driven? - Cargo growth is primarily driven by domestic customers shifting from ground to air logistics, indicating a growing market rather than a supply issue [28][30] Question: Can you elaborate on the repayment of deferrals? - The repayment plan for deferrals remains in place, with adjustments made due to the second wave impacting cash flow generation [33][35] Question: What is the outlook for yields and profitability? - Yields have improved recently, and management expects to exit 2021 with yields comparable to pre-crisis levels, supporting a path back to profitability [73]

Azul S.A. (NYSE:AZUL) Q4 2020 Earnings Conference Call March 4, 2021 10:00 AM ET Company Participants Thais Haberli - Investor Relations David Neeleman - Founder and Chairman John Rodgerson - Chief Executive Officer Alex Malfitani - Chief Financial Officer Abhi Shah - Chief Revenue Officer Conference Call Participants Mike Linenberg - Deutsche Bank Savi Syth - Raymond James Dan McKenzie - Seaport Global Stephen Trent - Citi Josh Milberg - Morgan Stanley Stefan Styk - Bank of America Murilo Freiberger - Bank ...

Financial Data and Key Metrics Changes - Azul ended Q3 2020 with R$2.3 billion in cash, an increase from the second quarter, reflecting the effectiveness of the management plan [10] - The company successfully issued over R$1.7 billion in convertible debt, resulting in a total cash position of R$4 billion, sufficient for more than five years at current cash burn levels [11] - The company reported a significant reduction in debt maturities, with only R$425 million amortizing between now and the end of 2021, providing a competitive advantage [11] Business Line Data and Key Metrics Changes - Azul's diversified fleet allows for flexibility in network customization, with plans to serve 113 destinations by the end of the year, having added back 88 cities [12] - The company reported that corporate travel revenue has improved to about 25%, up from 15% in the U.S., indicating a recovery trend [14] - Azul Cargo is experiencing record revenue growth, particularly from e-commerce, with expectations to increase its revenue share from 5% to 10-12% as passenger demand returns [16][77] Market Data and Key Metrics Changes - The recovery in demand is being led by leisure travel, with leisure revenue reaching nearly 100% of last year's levels, while corporate travel is recovering at a slower pace [22] - The company noted that the Northeast region of Brazil is showing strong recovery, contrasting with the slower recovery in major cities like São Paulo [52] Company Strategy and Development Direction - Azul's management plan focuses on maintaining operational flexibility and optimizing costs, which has resulted in significant cash savings and working capital [8] - The company is prioritizing domestic travel recovery while being cautious about international routes, with plans to resume flights to Orlando once U.S. borders open [66] - The strategic partnership with Latam is expected to enhance Azul's market position and expand its network [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing Brazil's potential for growth and the airline's strong cash position as key advantages [18] - The company is confident in its ability to recover to pre-COVID levels, emphasizing the unique demand dynamics in Brazil compared to other Latin American countries [17][55] Other Important Information - Azul has implemented various health and safety measures to enhance customer confidence, contributing to a strong demand recovery [8] - The company has successfully preserved liquidity without raising cash in the second and third quarters, a unique achievement among airlines in the Americas [9] Q&A Session Questions and Answers Question: Can you discuss the demand trends in Q3 and how they relate to leisure and business travel? - Management noted that leisure travel is leading the recovery, with corporate travel improving but lagging behind, currently at about 35-40% recovery [24] Question: What are the expectations for fleet deliveries in Q4 and beyond? - The company plans to take additional units in Q4 under existing financing structures, with flexibility to convert aircraft to cargo if needed [26] Question: How is the competitive landscape evolving in Brazil? - Management acknowledged the potential for new entrants in the premium segment but emphasized Azul's unique position and network advantages [79]

Company Overview and Strategy - Azul is a leading airline in Brazil, holding the 1 position in destinations served, market share in 83% of its markets, and domestic departures[9] - The company's business model is built upon a foundation of over US$1.3 billion of invested capital[14] - Azul's strategy includes a diversified fleet, a large network with multiple hubs, unparalleled network connectivity, and renowned customer service[15, 17] - The airline focuses on serving all of Brazil, with only 37% of its domestic ASKs from/to cities in the triangle compared to over 90% for competitors[260] Financial Performance and Market Opportunity - In 2019, Azul achieved an operating margin of 17.8% and an EBITDA margin of 31.7%[11] - Brazil's domestic passenger count was 126 million in 2022[12] - Azul Cargo has a 27% market share in Brazil[281] COVID-19 Response and Recovery - Azul implemented a management plan with over R$7 billion in cash savings and deferrals until December 2021[293] - The company achieved a 21% lease liability reduction through renegotiations with leasing partners[299] - By September 2020, Azul planned to serve 88 destinations with 404 daily flights[310]

Azul S.A. (NYSE:AZUL) Q2 2020 Earnings Conference Call August 13, 2020 11:00 AM ET Company Participants Andrea Bottcher - Investor Relations Manager David Neeleman - Founder & Chairman John Rodgerson - Chief Executive Officer Abhi Shah - Chief Revenue Officer Alex Malfitani - Chief Financial Officer Conference Call Participants Josh Milberg - Morgan Stanley Savi Syth - Raymond James Victor Misuzaki - Bradesco BBI Mike Linenberg - Deutsche Bank Stephen Trent - Citibank Pablo Monsivais - Barclays Operator Hel ...