Azul(AZUL)

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Here's Why You Should Retain AZUL Stock in Your Portfolio Now
ZACKS· 2024-12-27 17:15
Core Insights - Azul S.A. (AZUL) is experiencing growth due to increased air-travel demand, fleet modernization, and fuel efficiency improvements, although rising operating expenses pose challenges [1][5]. Financial Performance - In Q3 2024, AZUL's passenger revenues, which account for 92.8% of total revenue, increased by 4% year over year, with consolidated traffic rising by 4.3% [9]. - Operating expenses grew by 3.8% year over year, influenced by a 3.7% increase in total capacity, a 13.6% depreciation of the Brazilian real against the US dollar, and an 8.6% rise in fuel prices [5]. - AZUL reported a record EBITDA of R$1.65 billion in Q3 2024, marking a 6% year-over-year increase and a 57.1% sequential rise, with an EBITDA margin improvement of 50 basis points to 32% [14]. Operational Efficiency - AZUL operates the most fuel-efficient fleet in Brazil, with approximately 83% of its capacity derived from next-generation aircraft, leading to a 2.9% reduction in fuel consumption per available seat kilometer (ASK) [12]. - Cost per ASK (CASK) remained nearly flat year over year, with CASK excluding fuel decreasing by 2.8%, despite the depreciation of the Brazilian real and inflation [13]. - The airline has reduced its full-time equivalent (FTE) employees by 1.5% sequentially while growing its operations by 10%, resulting in an 11.3% improvement in FTE per ASK [17]. Future Outlook - AZUL anticipates full-year EBITDA of around R$6 billion for 2024 and R$7.4 billion for 2025, driven by strong travel demand and a rational competitive environment [8]. - The company is implementing a restructured financing plan aimed at improving liquidity and cash generation while reducing leverage [8].
Azul Announces Exchange Offers in respect of Existing 2029 Second Out Notes and Existing 2030 Second Out Notes for New Notes and Solicitations of Consents to Proposed Amendments to the Existing Indenture
Prnewswire· 2024-12-18 04:51
SÃO PAULO, Dec. 17, 2024 /PRNewswire/ -- Azul S.A., "Azul," (B3: AZUL4, NYSE: AZUL) ("Azul") today announced that its wholly-owned subsidiary Azul Secured Finance LLP (the "Issuer") has commenced offers to Eligible Holders (as defined below) to exchange (such offers, the "Exchange Offers") (i) any and all of the outstanding 11.500% Senior Secured Second Out Notes due 2029 issued by the Issuer (the "Existing 2029 Notes") for newly issued 11.500% Senior Secured Second Out Notes due 2029 to be issued by the Is ...
Azul Announces Exchange Offer in respect of Existing 2028 First Out Notes for New Notes and Solicitation of Consents to Proposed Amendments to the Existing Indenture
Prnewswire· 2024-12-18 04:50
SÃO PAULO, Dec. 17, 2024 /PRNewswire/ -- Azul S.A., "Azul," (B3: AZUL4, NYSE: AZUL) ("Azul") today announced that its wholly-owned subsidiary Azul Secured Finance LLP (the "Issuer") has commenced an offer to Eligible Holders (as defined below) to exchange (such offer, the "Exchange Offer") any and all of the outstanding 11.930% Senior Secured First Out Notes due 2028 issued by the Issuer (the "Existing Notes") for newly issued 11.930% Senior Secured First Out Notes due 2028 to be issued by the Issuer (the " ...
Automotive Genuine Leather Industry Report 2024, with Coverage of Major Players such as Bader, Boxmark, Carroll Leather, Conneaut Leather, Couro Azul, Mingxin Leather, Wollsdorf and More
GlobeNewswire News Room· 2024-12-12 10:17
Dublin, Dec. 12, 2024 (GLOBE NEWSWIRE) -- The "Automotive Genuine Leather - Global Strategic Business Report" has been added to ResearchAndMarkets.com's offering.The global market for Automotive Genuine Leather was estimated at US$10.3 Billion in 2023 and is projected to reach US$14.2 Billion by 2030, growing at a CAGR of 4.8% from 2023 to 2030.The growth in the automotive genuine leather market is driven by several key factors, including increasing consumer demand for luxury vehicles, rising disposable in ...
Should Investors Bet on AZUL Stock Despite Q3 Earnings Miss?
ZACKS· 2024-11-20 16:35
Core Viewpoint - Azul S.A. reported lower-than-expected Q3 2024 results, with both revenue and earnings missing the Zacks Consensus Estimate, leading to a significant drop in share price [1][3][17] Financial Performance - In Q3 2024, Azul incurred a loss of $0.32 per share, which was worse than the expected loss of $0.10 [4] - Total revenues were $925.1 million, falling short of the consensus estimate of $953.2 million, despite benefiting from strong demand and ancillary revenues [5] - Passenger revenues, which accounted for 92.8% of total revenues, grew by 4% year-over-year [5] - Cargo revenue increased by 8.8% year-over-year, driven by improved ancillary revenues and solid domestic demand, although partially offset by reduced domestic capacity [6] Capacity and Traffic - Azul has revised its full-year capacity growth expectation down to nearly 6% from a prior estimate of 7% due to domestic capacity reductions from floods and aircraft delivery delays [2] - Consolidated traffic, measured in revenue passenger kilometers (RPKs), rose by 4.3%, with domestic traffic up 8.4% but international traffic down 8.4% [7] - Available seat kilometers (ASK) increased by 3.7%, with domestic capacity rising by 6.8% and international capacity declining by 7% [7] Cost Management and Profitability - Cost per available seat kilometer (CASK) remained flat year-over-year, with a 2.8% decrease when excluding fuel costs [9] - Azul achieved a record EBITDA of R$1.65 billion in Q3 2024, up 6% year-over-year and 57.1% sequentially, with an EBITDA margin of 32% [11] - The company anticipates full-year EBITDA of around R$6.0 billion for 2024 and R$7.4 billion for 2025, supported by strong travel demand and operational efficiencies [12][13] Valuation and Market Position - Azul is trading at a discount compared to the industry based on its forward 12-month price-to-sales ratio, with a Value Score of A [14] - Despite the positive valuation, the stock has underperformed, with a 40.5% decline over the past three months, contrasting with competitors like Copa Holdings and Ryanair [17][19] Earnings Estimates - Earnings estimates have been revised downward, with the current consensus for Q4 2024 at a loss of $1.62 per share, reflecting a trend of disappointing earnings surprises [21][20]
AZUL Q3 Loss Wider Than Expected, 2024 Capacity View Lowered
ZACKS· 2024-11-15 14:50
Azul S.A. (AZUL) incurred a loss of 32 cents per share in the third quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 10 cents.Find the latest EPS estimates and surprises on ZacksEarnings Calendar.Total revenues of $925.1 million lagged the Zacks Consensus Estimate of $953.2 million. AZUL’s third-quarter 2024 revenues benefit from a healthy demand environment and robust ancillary revenues.With more people taking to the skies, Azul’s passenger revenues, contributing 92.8% to the top line, ...
Azul(AZUL) - 2024 Q3 - Earnings Call Transcript
2024-11-14 20:30
Financial Data and Key Metrics Changes - The company reported an all-time record revenue of BRL5.1 billion for Q3 2024, which is 69% higher than Q3 2019 [11][13] - EBITDA reached an all-time record of BRL1.7 billion, 77% higher than Q3 2019, with an EBITDA margin improvement of 1.4 percentage points [11][13] - The company faced a 40% devaluation of the currency and a 73% increase in fuel prices, yet managed to expand margins compared to 2019 [11][13] Business Line Data and Key Metrics Changes - The logistics, AVA, vacations, and loyalty business units are identified as key drivers for growth and margin expansion [10] - The company reported a 30% increase in unit revenue from the vacations and loyalty business units, and a 90% increase in the charters business unit [62] Market Data and Key Metrics Changes - The company noted a recovery in capacity and unit revenue compared to Q2 2024, with RASK up 12% over the previous quarter [14] - The Porto Alegre airport, which was closed, partially reopened on October 21, contributing positively to the network's potential [15] Company Strategy and Development Direction - The company is focused on strengthening its business model through fleet transformation, operational efficiency, and strategic partnerships [10][28] - The Elevate program aims to improve processes and technology, resulting in a 10% increase in capacity with a reduction in crew members [17][19] - The company plans to achieve a projected record EBITDA of BRL7.4 billion in 2025, indicating strong future growth potential [22][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges such as currency devaluation and supply chain issues but expressed confidence in the company's resilience and growth trajectory [24][26] - The management highlighted the importance of industry discipline and the positive demand environment for continued strong revenue performance [16][66] Other Important Information - The company successfully renegotiated with lessors and bondholders, resulting in a significant reduction of over BRL1.5 billion in debt and improved cash flow [34][36] - The company expects to reduce interest expenses by nearly BRL1 billion per year, enhancing cash generation capabilities [43][45] Q&A Session Summary Question: Update on expected deliveries for widebodies and E2s - The company received four widebodies this year and expects deliveries of 10 E2s this year, with 12 to 15 E2s anticipated for next year [51] Question: Clarification on the $807 million of debt to be equitized - The transaction is expected to close by the first quarter, with an initial part converting to equity and subsequent phases based on share price [53][54] Question: 2025 guidance and demand environment - The 2025 guidance reflects a firm EBITDA estimate of BRL7.4 billion, with a focus on maintaining capacity growth and managing FX and oil price impacts [60][62] Question: Cash impact from FX devaluation and fare expectations - The company expects to recover 60% to 80% of the FX impact through higher fares, with a positive outlook for Q4 and 2025 [65][66] Question: Sustainability of salary and other expenses - The company aims for improved productivity and efficiency, with expectations for salaries to remain sustainable while managing other expenses effectively [70]
AZUL Set to Report Q3 Earnings: What's in the Offing for the Stock?
ZACKS· 2024-11-12 14:06
AZUL (AZUL) is scheduled to report third-quarter 2024 results on Nov. 14, before market open.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.AZUL has a discouraging earnings surprise history, having missed the Zacks Consensus Estimate in each of the trailing four quarters. The average miss is 62.86%.The Zacks Consensus Estimate of a loss in the soon-to-be-reported quarter is currently pegged at 14 cents per share, compared with a loss of 4 cents 30 days ago. Meanwhile, the Zacks Conse ...
Azul Celebrates Successful Negotiations with Partners and Announces Strengthened Financial Position
Prnewswire· 2024-10-28 11:30
After being affected by several external factors, such as exchange rate fluctuations and challenges in the global aviation supply chain, Azul announces the completion of negotiations with aircraft lessors and the signing of a support agreement with its main creditors, establishing an enhanced financial position and unlocking further growth. SÃO PAULO, Oct. 28, 2024 /PRNewswire/ -- Azul, Brazil's largest airline by number of flights and destinations, today announces the completion of agreements with its airc ...
Escape to Azul Beach Resort Negril - The Perfect Family Getaway
GlobeNewswire News Room· 2024-10-18 11:00
A Media Snippet accompanying this announcement is available by clicking on this link. ORLANDO, Fla., Oct. 18, 2024 (GLOBE NEWSWIRE) -- Azul Beach Resort Negril invites families to experience a perfect Caribbean getaway. Nestled along the world-renowned Seven Mile Beach in Jamaica, this all-inclusive resort offers spacious accommodations, friendly service, and unforgettable experiences for travelers of all ages. Savor Delectable Delights: Indulge in the Karisma Gourmet Inclusive® Experience, offering authen ...