Azul S.A. (AZUL) incurred a loss of 47 cents per share in the fourth quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 22 cents. Loss per share was 83 cents in the fourth quarter of 2022.Total revenues of $1,015.6 million lagged the Zacks Consensus Estimate of $1,016.8 million but increased year over year. The year-over-year improvement is due to the robust growth in passenger revenues and a solid contribution from other businesses, especially the continued growth in domestic cargo reven ...

Azul S.A. (NYSE:AZUL) Q4 2023 Earnings Conference Call March 28, 2024 11:00 AM ET Company Participants Thais Haberli - Head, Investor Relations David Neeleman - Founder & Chairman John Rodgerson - Chief Executive Officer Alex Malfitani - Chief Financial Officer Abhi Shah - President Conference Call Participants Victor Mizusaki - Bradesco Savi Syth - Raymond James Gabriel Rezende - Itau Alberto Valerio - from UBS Daniel McKenzie - Seaport Global Guilherme Mendes - JP Morgan Operator [Call Starts Abruptly] [O ...

Core Insights - Azul TecOps, a business unit of Azul, has received certification from the European Union Aviation Safety Agency (EASA) to provide aircraft and component maintenance services to EU companies, marking its first international endorsement [1][3] - The certification is valid for two years and is part of a bilateral agreement aimed at simplifying maintenance organization approvals between Brazil and the EU [1] - The approval allows Azul TecOps to expand its services beyond Brazil, potentially increasing customer acquisition and revenue generation opportunities [3] Company Operations - Azul TecOps was established in April 2023 to offer maintenance services and technical expertise, and has trained over 750 crew members to meet EASA's requirements [2] - The main hangar of Azul, located next to Viracopos airport in Campinas, is the largest in Latin America, with a capacity for three lines of heavy maintenance and various specialized services [4] - Azul also operates maintenance facilities in Belo Horizonte, with over 14,000 square meters dedicated to servicing various aircraft fleets, including ATR and Boeing [5] Industry Position - Azul is Brazil's largest airline by the number of flights and destinations, operating over 900 flights daily to more than 150 cities [6] - The airline has received multiple industry recognitions, including being named the most on-time airline in the world in 2022 and the best airline in the world by TripAdvisor in 2020 [6]

Matheus Obst In a recent report, I discussed the bankruptcy of Gol Linhas Aéreas Inteligentes S.A. (OTCPK:GOLLQ) and one of the questions I received was whether Azul S.A. (NYSE:AZUL) would benefit from the Gol bankruptcy, and intuitively one would argue that will be the case. However, in this report, I explain why there's no certainty that the Gol bankruptcy will help Azul. For the time being, I'm not altering my rating for Azul, but I want to discuss the Gol-Azul dynamics from a qualitative perspective. Th ...

Stefan Lambauer/iStock Editorial via Getty ImagesSummary Azul S.A.'s (NYSE:AZUL) outlook has turned up, in a span of 90 days two very important events should improve the airline's operating and cashflow dynamics which led me to upgrade the shares to BUY from Sell. In 4Q24 the company concluded a US$950m debt restructure related to aircraft leases that included issuing new shares without significant dilution. The second is the recent chapter 11 decision by Linhas Aéreas Inteligentes S.A. (OTCPK:GOLLQ) th ...

The codeshare will add the cities of Key West, Tampa, Gainesville in Florida and many more destinations in The Bahamas to Azul's destinations  SÃO PAULO, Jan. 25, 2024 /PRNewswire/ -- Azul, the largest airline in Brazil terms of daily flights and served destinations, and Silver Airways, one of the leading regional airlines in the United States, have announced the commencement of a codeshare agreement, which entails the sharing of flights between the two airlines. In this cooperation model, customers can pur ...

Core Insights - Azul S.A. reported significant year-over-year increases in traffic and capacity for December 2023, with consolidated revenue passenger kilometers up 5.7% and available seat kilometers up 2.9% [1] - The load factor improved to 79.8% from 77.6% in December 2022, indicating strong demand relative to capacity [1] - CEO John Rodgerson highlighted a strong year for Azul in 2023, with traffic and capacity increases of 12% and 11% respectively, leading to record RASK in Q4 2023 [2] - Azul's stock appreciated by 24.9% over the past year, outperforming the Zacks Airline industry, which saw a decline of 0.7% [2] Traffic and Capacity Performance - In December 2023, domestic revenue passenger kilometers increased by 4%, while available seat kilometers rose by 1.1%, resulting in a load factor increase to 79.2% from 77% in December 2022 [1] - Internationally, revenue passenger kilometers and available seat kilometers rose by 12.2% and 9.7% respectively, with the load factor increasing to 81.7% from 79.9% in December 2022 [1] Industry Context - Ryanair Holdings reported a 9% increase in passengers for December 2023, with a high load factor of 91% despite over 900 flight cancellations due to external conflicts [4] - Azul currently holds a Zacks Rank of 3 (Hold), while other stocks in the transportation sector, such as Wabtec Corporation and SkyWest, have better rankings [5] - Wabtec has an expected earnings growth rate of 22.43% for the current year, and SkyWest's earnings estimate has improved by 38.9% over the past 90 days, with a significant stock surge of 217.7% year to date [6]

Azul S.A. (NYSE:AZUL) Q3 2023 Earnings Conference Call November 14, 2023 10:00 AM ET Company Participants Thais Haberli - Head, Investor Relations David Neeleman - Founder & Chairman John Rodgerson - Chief Executive Officer Alex Malfitani - Chief Financial Officer Abhi Shah - President Conference Call Participants Gabriel Rezende - Itaú BPA Gabriel Raposo - Bradesco Michael Linenberg - Deutsche Bank Daniel McKenzie - Seaport Global Operator Hello, everyone, and welcome all to Azul's Preliminary Third Quar ...

Preliminary 3Q23 Results Disclaimer The information contained in this presentation is only a summary and does not purport to be complete. This presentation has been prepared solely for informational purposes and should not be construed as financial, legal, tax, accounting, investment or other advice or a recommendation with respect to any investment. This presentation does not constitute or form part of any offer or invitation for sale or subscription of or solicitation or invitation of any offer to buy or ...

Financial Data and Key Metrics Changes - In Q2 2023, the company achieved record revenues of BRL 4.3 billion, a 9% increase compared to Q2 2022 and a 63% increase compared to Q2 2019 [9] - EBITDA grew 88% year-over-year, reaching BRL 1.2 billion, with an EBITDA margin of 27%, which is 11.4 percentage points higher year-over-year [9][10] - Average fares increased by 6% year-over-year, while fuel prices decreased by 24% year-over-year [10] Business Line Data and Key Metrics Changes - The loyalty program saw gross billings more than double compared to 2019, with sign-ups increasing over 80% since the launch of the expanded schedule [7] - The vacation business experienced over 40% growth in gross billings compared to Q2 2022, now being four times the size in net revenue compared to 2019 [7] - Azul Cargo, the logistics business, maintained a 34% domestic market share, with net revenues more than doubling compared to 2019 [8] Market Data and Key Metrics Changes - The company is the only carrier on 81% of its routes and leads in over 90% of its routes, supporting its industry-leading profitability [6] - Domestic demand has recovered to 100% of corporate volumes compared to 2019, with average fares up 40% to 50% [45] - The domestic logistics business continues to grow at mid-to-high single digits, while international cargo has softened [48] Company Strategy and Development Direction - The company successfully concluded its capital optimization plan, which included agreements with lessors and a new capital raise of $800 million in bonds [12][14] - The focus is now on expanding operational efficiency and optimizing the utilization of the fleet, with significant improvements expected in the coming years [29][37] - The management team is dedicated to building a strong airline with a unique business model and significant upside potential [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of international capacity, which is expected to be larger than in 2019, with strong partnerships enhancing market reach [21][22] - The company anticipates a strong second half of the year, with expectations for EBITDA to reach BRL 5.5 billion, driven by improved operational leverage [34][35] - The management team is optimistic about returning to pre-pandemic EBITDA margins, with expectations for further growth in 2024 and beyond [36] Other Important Information - The company has reduced annual lease payments by BRL 1.5 billion in 2023 and over BRL 1 billion in 2024, optimizing cash flow for future growth [15] - The leverage ratio decreased from 5.2x to 4.2x, with expectations to further reduce it to 3.5x by the end of the year [16] Q&A Session Summary Question: Opportunities in International Corridors - Management noted that international capacity in 2023 will exceed 2019 levels, with strong performance in both European and U.S. markets [21][22] Question: Adjustments Made in EBITDA - Adjustments were primarily related to the capital optimization plan, including costs from early aircraft redelivery and restructuring fees [23][24] Question: Fleet Plan and Utilization - The fleet plan includes significant improvements with new aircraft deliveries, and management expects to return to pre-COVID utilization levels [28][30] Question: Profitability and EBITDA Margins - Management is confident in achieving BRL 5.5 billion EBITDA for the year, with expectations for margin recovery in 2024 [34][36] Question: Domestic Market Trends - Domestic demand is strong, with corporate volumes fully recovered to 2019 levels, and pricing environment remains favorable [45][46] Question: Cargo Business Outlook - The domestic logistics business continues to grow, while international cargo faces challenges; however, the focus remains on domestic growth [48][49] Question: CapEx Plans - CapEx for maintenance is projected between BRL 1.8 billion to BRL 2 billion, with no new aircraft purchases expected this year [52][71]