Source: Azul
Azul S.A., “Azul”, the largest airline in Brazil by number of flights and cities served, announced its expected results in terms of capacity, EBITDA and leverage for 2023 and 2024. Based on the best information available, we share below our expected results:
1) Azul expects to increase capacity by approximately 14% in the full year 2023 compared to 2022.
We continue to see a robust demand environment, and as a result we expect to grow total capacity by approximately 14% in 2023 compared to 2022, with growth rates higher than that figure in international markets and lower in domestic.
2) We estimate 2023 EBITDA around R$5.5 billion.
Given our expectations of capacity growth, unit revenue increase, higher productivity and a more favorable fuel environment, we are confident our EBITDA for 2023 will be around R$5.5 billion excluding non-recurrent items.
3) Azul expects leverage around 3.5x at the end of 2023 and around 3.0x at the end of 2024.
Given the favorable metrics above and the outcome of our permanent restructuring plan, we expect to continue our deleveraging process, with leverage measured by Net Debt/LTM EBITDA of around 3.5x at the end of 2023 and around 3.0x at the end of 2024. This leverage ratio includes cash and cash equivalents, short-term and long-term investments, and receivables and excludes convertible debentures.