Source: Azul Linhas Aéreas

Azul S.A., “Azul”, the largest airline in Brazil by number of cities and departures, announces its results for the second quarter of 2022 (“2Q22”). 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

  • Operating revenues reached an all-time record of R$3.9 billion in 2Q22, seasonally the weakest quarter of the year. Our top-line revenue more than doubled compared to 2Q21 and increased an impressive 50% compared to 2Q19. This was the third consecutive quarter with net revenues above pre-pandemic levels.
  • PRASK and RASK increased 57.3% and 44.5% respectively year over year, even with a 59.6% growth in capacity, mostly due to the sustainable competitive advantages of our business model, which allowed us to continue raising fares to offset record-high fuel prices.
  • Our other business units Azul Cargo, Azul Viagens and Tudo Azul continued their outstanding performance, each one reaching all-time record revenues in 2Q22.
  • EBITDA reached R$614.6 million in the quarter, representing a margin of 15.7%. Adding fuel hedge gains in the quarter of R$265.0 million, EBITDA would have been R$879.6 million, 20.0% above 2Q19, and representing a margin of 22.4%. Operating income was R$136.5 million in the quarter, representing a margin of 3.5%.
  • CASK in 2Q22 was 38.89 cents, up 12.9% compared to 2Q21, mainly due to the 80.9% increase in fuel prices and 11.9% inflation over the last twelve months. CASK ex-fuel decreased 12.3% versus 2Q21, driven by our fleet transformation, cost reduction initiatives, productivity gains implemented during the past two years, and our capacity increase. Productivity measured in ASKs per full-time employee increased 10.6% versus 2Q19, and fuel consumption per ASK dropped 10.4% in the same period, as a result of our more efficient operation and next-generation fleet.
  • Our immediate liquidity position was R$4.0 billion, R$530 million higher than 1Q22. In the quarter, our operational cash inflows surpassed operating cash outflows by over R$2.1 billion, and we continued our deleveraging process with R$1.2 billion in payments of current and deferred leases and repayments of debt.
  • In June 2022, Cirium named Azul the most on-time mainline carrier in Latin America and the third in the world, with an on-time performance of 89.3%. Azul was also the most on-time airline in the Americas and maintains the highest customer satisfaction rate in Brazil and one of the highest in the world.