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 first quarter of 2022 (“1Q22”). The following financial information, unless stated otherwise, is presented in Brazilian reais and in accordance with International Financial Reporting Standards (IFRS).
- Total operating revenue in 1Q22 was R$3.2 billion, an increase of 74.9% compared to 1Q21 and 25.6% compared to 1Q19. This was the second consecutive quarter with net revenues above pre-pandemic levels, even with the impact of the Omicron variant to our operation.
- PRASK and RASK increased 40.7% and 38.3% respectively vs. 1Q21, even with a 26.4% increase in capacity. The results were driven by the strong domestic demand environment in Azul’s markets, which allowed us to raise fares to offset rising fuel prices.
- Our logistics business continued its outstanding performance. Revenues in 1Q22 reached almost R$300 million, 37.8% higher than 1Q21, tripled compared to 1Q19.
- CASK in 1Q22 was 34.45 cents, up 21.1% compared to 1Q21, mainly due to the 57.0% increase in fuel prices and 11.3% inflation over the last twelve months, partially offset by cost reductions, productivity gains and the 4.3% appreciation of the real against the dollar. Over this period, productivity measured by ASK per full-time employees increased 14.3%. CASK normalized by cargo, fuel and foreign exchange rate was essentially flat compared to 1Q19, offsetting over 20% inflation on real-denominated costs over the past three years.
- EBITDA reached R$592.7 million in the quarter, representing a margin of 18.6%. Excluding the impact of the Omicron variant, EBITDA would have been close to R$900 million. Operating income was R$70.7 million in the quarter, representing a margin of 2.2%.
- Immediate liquidity position remains solid at R$3.3 billion, above 1Q19 levels. During the quarter, Azul generated over R$500 million in operating cash flow. We continued our delevering process with R$1.3 billion in payments of current and deferred leases and repayments of debt and other deferrals
- For the second quarter of 2022, we expect to achieve an all-time record operating revenue and RASK for any quarter in our history. This is even more remarkable given the second quarter is seasonally our weakest.
More details at www.voeazul.com.br/ri