AZUL Q4 Earnings & Revenues Lag Estimates, EBITDA 2025 View Intact

Core Viewpoint - Azul S.A. reported a fourth-quarter 2024 earnings per share of 9 cents, which was below the Zacks Consensus Estimate of 12 cents, but showed over 100% improvement year-over-year [1] Financial Performance - Total revenues for the fourth quarter were $948.9 million, missing the Zacks Consensus Estimate of$957.6 million, driven by strong demand and robust ancillary revenues [2] - Passenger revenues, which accounted for 92.7% of total revenues, increased by 10% year-over-year, while cargo revenue and other grew by 9.9% due to improved performance and partial recovery of international operations [3] Traffic and Capacity - Consolidated traffic, measured in revenue passenger kilometers (RPKs), rose by 16.9% year-over-year, with domestic traffic increasing by 20.2% and international traffic by 5.9% [4] - Consolidated available seat kilometers (ASK) increased by 11% from the previous year, with domestic capacity rising by 13.3% and international capacity by 3.1% [4] - The load factor improved by 4.2 percentage points to 84.2%, indicating that traffic growth outpaced capacity expansion [4] Cost and Expenses - Total revenues per ASK (RASK) were R$44.98 cents, down 0.7$4.31 billion, driven by a rise in total capacity and currency depreciation [7] Liquidity and Debt - Azul ended the fourth quarter with total liquidity of R$7.49 billion, an increase from R$6.27 billion in the previous quarter, while gross debt decreased to R$33.6 billion from R$27.9 billion [8] Guidance - For 2025, Azul reaffirmed its EBITDA guidance at R$7.4 billion [9]