Brazil’s Azul posts higher net loss in fourth quarter
Brazilian airline Azul reported Monday that its fourth-quarter adjusted net loss deepened on a year-over-year basis, but expects clearer skies ahead thanks to a new agreement with aircraft lessors to reduce payments.
Azul said in a securities filing that the agreement should allow it to be cash flow positive starting in 2024, while projecting an “appreciable reduction” in capital expenditures over that period.
The airline had disclosed the deal late Sunday, saying lessors responsible for 90% of its obligations had agreed to receive equity and marketable debt in exchange for lower payments.
→ Brazil’s AZUL was the world’s most punctual airline in 2022
“We are encouraged by the strong demand environment and important milestones in our route network” in 2023, CEO John Rodgerson said in a statement, noting that the carrier has added routes to Paris and Curacao and is poised to increase flights to the United States.
Azul expects to generate record revenue of 20 billion reais ($3.84 billion) this year and earnings before interest, taxes, depreciation and amortization (EBITDA) of more than 5 billion reais, about 40% above pre-pandemic 2019 levels, Rodgerson said.
In the fourth quarter, the company posted an adjusted net loss of R$610.5 million, deeper than the R$436 million loss posted a year earlier and also higher than the R$562.81 million forecast by analysts polled by Refinitiv.
Total operating income rose 19.4% in the period to R$4.45 billion, slightly below analysts’ forecasts, while EBITDA came in around expectations at R$1.1 billion, up 6.9%, Reuters reported.
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