Azul Reports Third Quarter Net Income of R$117 Million

Azul S.A., Azul (B3:AZUL4)(NYSE:AZUL) the largest airline in Brazil by number of cities and departures, announces today its results for the third quarter of 2018 (3Q18). The following financial information, unless stated otherwise, is presented in Brazilian reais and in accordance with International Financial Reporting Standards (IFRS).

Financial and Operating Highlights for 3Q18

  • Operating income was R$174.1 million, representing a margin of 7.1%, even with the 25.1% devaluation of the Brazilian real and the 47.1% increase in fuel price per liter.
  • EBITDAR increased 7.6% to R$675.4 million, representing a margin of 27.7%.
  • Net income totaled R$116.6 million, compared to R$199.2 million in 3Q17.
  • Passenger traffic increased 20.2% over a capacity increase of 19.3%, resulting in a higher load factor of 83.7%, 0.6 percentage points higher than in 3Q17.
  • In addition to the double-digit growth in capacity, RASK increased 2.7% year over year. Assuming a flat stage-length, RASK rose 8.0% year over year.
  • Total CASK increased 8.7% despite the intense currency volatility and the sharp increase in fuel. CASK ex-fuel decreased 1.8%. On an exchange rate and fuel neutral basis, CASK would have been lower by 6.8%.
  • Net financial expenses decreased 9.4% to R$96.2 million due to the lower average cost of debt.
  • At the end of 3Q18, our total liquidity1 position totaled R$4.1 billion, up R$ 1.0 billion compared to 3Q17, representing 46.2% of the last twelve months (LTM) revenues.
  • Total debt considering the effect of currency swaps decreased R$99.6 million in the quarter to R$3.5 billion resulting in an adjusted net debt to EBITDAR leverage ratio of 4.2x.
  • Azuls operating fleet totaled 120 aircraft at the end of the quarter, including 17 next-generation A320neo aircraft, which represented 27% of total capacity. Average fleet utilization increased 10.5% year over year to 11.6 hours.
  • Year to date, TudoAzul recorded a 36% increase in gross billings ex-Azul compared to the same period in 2017.
  • Azul cargo recorded a 62% year-over-year increase in revenue.
  • Azul was the most on-time airline in Brazil in 9M18 and one of the top five in the world, with an on-time performance of 87.1% (FlightStats).

To retrieve the full version of this press release visit www.voeazul.com.br/ir

Conference Call Details

 Stay Updated To Save Money & Time. Join Our Free Newsletter 
. Indepth Analysis & Opinion       . Interviews      . Exclusive Reports  
. Free Digital Magazines      News & updates      . Event Invitations 
                     
& Much More Delivered To Your Inbox For Free.
Submit
We Will Not Spam, Rent, or Sell Your Information.
All emails include an unsubscribe link. You may opt-out at any time. See our privacy policy.

 
Thursday, November 8th, 2018
12:00 p.m. (EST) | 3:00 p.m. (Bras­lia time)
USA: +1 412 317-6029
Brazil: +55 11 3193-1001 or +55 11 2820-4001
Code: AZUL

Webcast: www.voeazul.com.br/ir

Replay:
+55 11 3193-1012 or +55 11 2820-4012
Code: 6237454#
 

About Azul

Azul S.A. (B3:AZUL4)(NYSE:AZUL), the largest airline in Brazil by number of cities served, offers 766 daily flights to 110 destinations. With an operating fleet of 120 aircraft and more than 10,000 crewmembers, the Company has a network of 218 non-stop routes as of September 30, 2018. This year, Azul was awarded best airline in Latin America by TripAdvisor Travelers Choice and by Kayaks Flight Hacker Guide, and also best regional carrier in South America for the eighth consecutive time by Skytrax. Azul also ranked as most on-time airline in Brazil and most on-time low-cost carrier in the Americas in 2017 according to OAG’s Punctuality League, the industry’s most comprehensive annual ranking of on-time performance. For more information visit www.voeazul.com.br/ir.

1 Includes cash and cash equivalents, short-term and long-term investments and accounts receivable.

Azul S.A.
Investor Relations:
Andrea Bottcher, +55 11 4831 2880
[email protected]
or
Media
Relations, +55 11 4831 1245
[email protected]

 Stay Updated To Save Money & Time. Join Our Free Newsletter 
. Indepth Analysis & Opinion       . Interviews      . Exclusive Reports  
. Free Digital Magazines      News & updates      . Event Invitations 
                     
& Much More Delivered To Your Inbox For Free.
Submit
We Will Not Spam, Rent, or Sell Your Information.
All emails include an unsubscribe link. You may opt-out at any time. See our privacy policy.

 
Close
Stay Updated To Save Money & Time. Join Our Free Newsletter. 
. Indepth Analysis & Opinion       Interviews          . Exclusive Reports 
. Free Digital Magazines        . News & updates        . Event Invitations
& Much More Delivered To Your Inbox For Free. 
Submit
We Will Not Spam, Rent, or Sell Your Information.
All emails include an unsubscribe link. You may opt-out at any time. See our privacy policy.
 
Close