Azul reports BRL117 in Q3 2018 net income

Brazil-based airline Azul S.A., (B3:AZUL4)(NYSE:AZUL) has reported third quarter net income of BRL116.6 million, compared to BRL 199.2 million, the company said.

Financial and operating highlights for the third quarter 2018 include:

-Operating income was BRL 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 BRL 675.4 million, representing a margin of 27.7%.
-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.
-Net financial expenses decreased 9.4% to BRL 96.2 million due to the lower average cost of debt.
Total debt decreased BRL 99.6 million in the quarter to BRL 3.5 billion resulting in an adjusted net debt to EBITDAR leverage ratio of 4.2x.

Azul´s 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.

Azul cargo recorded a 62% year-over-year increase in revenue.

Azul S.A. 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.