Azul Reports Second Quarter Results
Adjusted Net Income Totaled R$238 Million, up R$277 Million Year over Year
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 second quarter of 2018 (“2Q18”). The following financial information, unless stated otherwise, is
presented in Brazilian reais and in accordance with International Financial Reporting Standards (IFRS). Prior periods presented
have been adjusted to reflect adoption of new IFRS accounting standards.
Financial and Operating Highlights for 2Q18
- Net income adjusted for non-recurring items1 totaled R$238.3 million, compared to a net
loss of R$38.6 million in 2Q17.
- Adjusted operating income was R$75.8 million yielding a margin of 3.7% compared with R$98.8 million
and a margin of 5.8% in 2Q17.
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| Financial results (R$ million) |
|
2Q18 1 |
|
2Q17 |
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% ∆ |
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1H18 1 |
|
1H17 |
|
% ∆ |
| Operating revenues |
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2,069.1 |
|
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1,717.1 |
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20.5 |
% |
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4,282.5 |
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3,595.5 |
|
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19.1 |
% |
| Operating income |
|
75.8 |
|
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98.8 |
|
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-23.3 |
% |
|
351.7 |
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308.0 |
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14.2 |
% |
| Operating margin |
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3.7 |
% |
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5.8 |
% |
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-2.1
|
p.p.
|
|
8.2 |
% |
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8.6 |
% |
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-0.4
|
p.p.
|
| EBITDAR |
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521.4 |
|
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470.0 |
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10.9 |
% |
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1,205.5 |
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1,036.2 |
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16.3 |
% |
| EBITDAR margin |
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25.2 |
% |
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27.4 |
% |
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-2.2
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p.p.
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28.2 |
% |
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28.8 |
% |
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-0.6
|
p.p.
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| Net income |
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238.3 |
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(38.6 |
) |
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n.a. |
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448.8 |
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19.7 |
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2,176.6 |
% |
| Net income per PN share (R$) |
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0.71 |
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(0.12 |
) |
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n.a. |
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1.33 |
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0.07 |
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1,917.5 |
% |
| Net income per ADS (US$) |
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0.55 |
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(0.11 |
) |
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n.a. |
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1.03 |
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0.06 |
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1,530.2 |
% |
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- Passenger traffic (RPKs) increased 17.4% over a capacity increase of 18.6% resulting in a load factor
of 80.1%, 0.8 percentage points lower than in 2Q17.
- In addition to the double-digit growth in capacity, RASK and PRASK adjusted for the loss in revenue
from the truckers’ strike in Brazil increased 1.6% and 1.1% year over year. Assuming a flat stage-length, RASK rose 8.1% year
over year.
- Adjusted CASK ex-fuel increased 0.3%, despite the 12.2% devaluation of the Brazilian real. On an
exchange rate neutral basis, CASK ex-fuel would have been lower by 5.1%.
- Net financial expenses decreased 26.9% from R$111.8 million to R$81.8 million due to lower average
cost of debt and lower leverage year over year.
- At the end of 2Q18, our total cash2 and receivables position totaled R$3.8 billion,
representing 45% of the last twelve months’ revenues.
- Azul’s operating fleet totaled 121 aircraft at the end of the quarter, including 15 next-generation
A320neo aircraft, representing 24% of total capacity.
- TudoAzul recorded a 38% year over year increase in gross billings ex-Azul.
- Azul cargo recorded a 64% year over year increase in revenue.
1 Adjusted for non-recurring items totaling R$283.3 million incurred in 2Q18 as detailed on page
12.
2 Includes cash and cash equivalents, short-term and long-term investments, and current and non-current
restricted investments.
To retrieve the full version of this press release visit www.voeazul.com.br/ir
About Azul
Azul S.A. (B3:AZUL4) (NYSE:AZUL), the largest airline in Brazil by number of cities served, offers 780 daily flights to 107
destinations. With an operating fleet of 121 aircraft and more than 10,000 crewmembers, the Company has a network of 217 non-stop
routes as of June 30, 2018. This year, Azul was awarded best airline in Latin America by TripAdvisor Travelers’ Choice and in 2017,
the Company was elected best low cost carrier in South America for the seventh consecutive time by Skytrax. Azul also ranked as
most on-time airline in Brazil and most on-time low-cost carrier in the Americas in 2017 according to OAG's Punctuality League, the
industry's most comprehensive annual ranking of on-time performance. For more information visit www.voeazul.com.br/ir.
Azul S.A.
Investor Relations:
Andrea Bottcher, +55 11 4831 2880
invest@voeazul.com.br
or
Media Relations, +55 11 4831 1245
imprensa@voeazul.com.br
View source version on businesswire.com: https://www.businesswire.com/news/home/20180809005344/en/