Azul (AZUL4) profits R$403.3 million in the fourth quarter, an annual increase of 74.5%

Azul (AZUL4) reported net profit of R$403.3 million in the fourth quarter of 2023 (4Q23), an increase of 74.5% over the performance of a year before, the airline reported this Thursday morning ( 28).

In adjusted terms, the company had a net loss of R$270.6 million in the last three months of 2023, 55.7% lower than the negative result presented in the same period of 2022.

The company stated that the results are not audited and that it will not be able to deliver the audited financial statements and the independent auditor’s report for 2023 within the legal deadline, “since the work of the independent auditors in relation to the review of such statements has not yet been completed. it was finished”.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in 4Q23 increased 33.7% to R$1.5 billion, representing a margin of 29.2%.

Operating profit in 4Q23 increased 68.3% to R$883.2 million, representing a margin of 17.6%, 5.8 percentage points more compared to 4Q22.

Total operating revenue in 4Q23 increased 13.0%, reaching a record R$5.0 billion, mainly due to a robust increase in passenger revenue, supported by the strong contribution from our other businesses.

Revenue from cargo and others, in turn, reached a historic record of R$365.1 million, an increase of 9.5% compared to the same period last year.

RASK once again reached historic records at R$45.30 cents, an increase of 6.1% compared to 4Q22.

Blue (BLUE4) Financial leverage

Immediate liquidity was R$3.0 billion, representing 16.2% of revenue in the last twelve months and 18.8% higher compared to 4Q22.

Azul’s leverage, measured as net debt in relation to Ebitda, reduced to 3.7 times, in line with the company’s outlook and a reduction of 2 points compared to 4Q22. Azul expects to continue to reduce leverage, reaching approximately 3x by the end of 2024, below pre-pandemic levels.

Guidance

Azul also announced a projection of having an EBITDA in 2024 of around R$ 6.5 billion, above the previous projection of R$ 6.3 billion, and greater than the 5.2 billion obtained in 2023, which in turn it was 61.4% above the 2022 performance.

Azul expects to increase capacity by approximately 11% in 2024 compared to 2023. “The expected growth is primarily driven by the continued strong demand environment and the implementation of our fleet transformation strategy,” says the company.

(With Reuters)