Azul reports record Q2 results

Azul S.A., (B3:AZUL4) (NYSE:AZUL) the largest airline in Brazil by number of cities and departures, has announced its results for the second quarter of 2017 (“2Q17”), the company said.

The following financial information, unless stated otherwise, is presented in Brazilian reais and in accordance with International Financial Reporting Standards (IFRS).

Operating income was RUSD 104.9 million, representing a margin of 6.1% compared with RUSD 1.3 million and a margin of 0.1% in 2Q16. This is a record second quarter operating result for Azul.

EBITDAR increased 41% to RUSD 476.1 million, representing a margin of 27.6%.
Net loss totaled RUSD 33.9 million, representing an improvement of RUSD 86.2 million over 2Q16.

Passenger traffic (RPKs) increased 21% over a capacity increase of 18% resulting in a higher load factor of 80.9%, 1.9 percentage points higher than in 2Q16.

In addition to the double-digit growth in capacity, total revenue per ASK (RASK) and passenger revenue per ASK (PRASK) increased 1.2% and 1.7% year over year totaling 28.93 cents and 24.92 cents, respectively.

Operating cost per ASK excluding fuel (CASK ex-fuel) decreased 8.1% while CASK decreased 4.9%, despite the 11.2% increase in fuel cost per liter.
Net financial expenses decreased 33.8% from RUSD 168.8 million to RUSD 111.8 million due to lower average cost of debt and repayment of more expensive loans.
At the end of 2Q17, our total cash1 and receivables position totaled RUSD 3.0 billion, representing 42.4% of the last twelve months´ (LTM) revenues.

Azul´s operating fleet totaled 123 aircraft at the end of the quarter, including eight next-generation A320neo aircraft.

Azul offers 739 daily flights to 102 destinations., with a fleet of 123 aircraft and more than 10,000 crewmembers.