Azul presented its projections for 2022 and 2023
Azul, Brazil’s largest airline by number of cities served, announced Monday its expected results in terms of capacity, RASK, EBITDA and leverage and projections for 2022, 2023 and 2024.
Azul expects to increase capacity by approximately 10% in 2022
In the first quarter of 2022, the airline reached a record 151 destinations served. It has also seen nine consecutive months of strong and growing leisure demand, while corporate has accelerated rapidly. As a result, the carrier expects to increase total capacity by approximately 10% in 2022 compared to 2019.
→ Brazil’s Azul presents the world’s first Embraer E195 freighter.
Increase RASK by more than 20% in fiscal 2022.
The airline ended the first quarter of 2022 with fares at record levels in both the leisure and corporate segments. Compared to 2019, the company’s revenue has already recovered by more than 120%, while traffic remains 71% of pre-pandemic levels, indicating further potential for recovery. The company remains confident in its revenue potential for 2022 and we estimate that RASK will increase by more than 20% in 2022 compared to 2019.
It expects to generate EBITDA in 2022 of R$4.0 billion and in 2023 of R$5.5 billion
Azul remains strongly focused on the execution of its business plan for 2022, with emphasis on the expansion of its exclusive network. Considering the current demand, fuel and exchange rate scenario, the company expects to generate record EBITDA of R$4 billion in 2022, even with the impact of the Omicron variant in the first quarter. It also projects EBITDA of R$5.5 billion in 2023, up from the previous record of R$3.6 billion in 2019.
Azul expects to end 2022 with leverage calculated as net debt/EBITDA for the last twelve months, including cash and cash equivalents, short-term investments and accounts receivable.
Given the current scenario of demand recovery and revenue growth already realized in 2022, the airline is confident it can end 2022 with leverage starting at 5 and continue to reduce it organically, bringing it to levels starting at 4 in 2023 and 3 in 2024.
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