Azul SA (B3:AZUL4, NYSE:AZUL) released today (11/08) its results for the second quarter of 2022 (“2Q22”).
The financial information presented below, except where indicated, is in reais and in accordance with IFRS (International Financial Reporting Standards) ing standards.
Operating revenue reached an all-time high of R$3,9 billion in 2Q22, seasonally the weakest quarter of the year. Total net revenue more than doubled compared to 2Q21 and increased by an impressive 50% compared to 2Q19. This was the third consecutive quarter with net income above pre-pandemic levels.
PRASK and RASK increased 57,3% and 44,5% respectively year-on-year, even with a 59,6% growth in capacity, mainly due to the sustainable competitive advantages of the business model, which allowed it to continue to increase tariffs to compensate record fuel prices.
The other business units Azul Cargo, Azul Viagens and TudoAzul maintained their excellent performance, also delivering record revenues in 2Q22.
EBITDA reached R$614,6 million in the quarter, representing a margin of 15,7%. Adding the fuel hedge gains in the quarter of R$265,0 million, EBITDA would have been R$879,6 million, 20,0% above 2Q19, and representing a margin of 22,4%. Operating profit was R$136,5 million in the quarter, representing a margin of 3,5%.
CASK in 2Q22 was 38,89 cents, 12,9% higher than in 2Q21, mainly due to the 80,9% increase in fuel prices and 11,9% inflation in the last twelve months. CASK excluding fuel decreased by 12,3% compared to 2Q21, driven by the fleet transformation, cost reduction initiatives and productivity gains implemented during the last two years, and the increase in capacity.
Productivity measured in ASKs per FTE increased by 10,6% compared to 2Q19, and fuel consumption per ASK decreased by 10,4% in the same period, as a result of a more efficient operation and the latest generation fleet.
The company also reported a net loss of BRL 2,6 billion in the 2nd quarter, compared to a profit of almost BRL 1,1 billion in the previous quarter (1Q22). THE BLUE highlighted a cost increase of 112,4% in aviation fuel prices and an average depreciation of 25,7% of the real against the US dollar, as the reason for the increase in its expenses in 2Q22.
In June 2022, Cirium named Azul as the most punctual airline in Latin America and the third in the world, with a punctuality rate of 89,3%. Azul was also the most punctual airline in the Americas, with the highest customer satisfaction index in Brazil and one of the highest in the world.
Azul ended the quarter with R$4,0 billion of immediate liquidity, including cash and cash equivalents, fuel hedging gains, s receivable and short-term investments. This represents an increase of R$530 million from the previous quarter, even after paying R$1,7 billion in leases, loans, deferred payments, interest and capital expenditures. This immediate liquidity represented 29,4% of Azul's revenue in the last twelve months.
Total liquidity including deposits, maintenance reserves, long-term investments and receivables was R$7,0 billion as of June 30, 2022.
See a summary of financial results in the table below:
See Azul's complete financial results in the 2nd quarter Clicking here.
