Azul reports record revenue of R$3.7 billion in fourth quarter

posted on 24th February 2022 by Eddie Saunders
Azul reports record revenue of R$3.7 billion in fourth quarter

Azul S.A. the largest airline in Brazil by number of cities and departures, announces today its results for the fourth quarter of 2021 and for the full year 2021.

The following financial information, unless stated otherwise, is presented in Brazilian reais and in accordance with International Financial Reporting Standards (IFRS).

Financial and Operating Highlights

  • During the fourth quarter, Azul again demonstrated the sustainable competitive advantages of our business model by reaching the highest revenue in our history. In 4Q21, operating revenue reached a record R$3.7 billion, more than double 4Q20, and 14.7% up compared to the same period in 2019. Azul was one of the very few airlines worldwide to surpass pre-pandemic revenues already in 2021.
  • Our logistics business continued its outstanding performance with a record year, surpassing the ambitious target to double revenue for the full year in 2021 compared to 2019. Revenues for the year reached R$1.1 billion, 128.0% higher than the 2019 revenues of R$480.7 million.
  • RASK and PRASK increased 17.5% and 12.3% respectively compared to 4Q19, driven by the strong domestic revenue performance from both leisure and corporate segments, which led to an increase in fares in addition to the record revenues from our logistics business. Compared to 4Q20, RASK and PRASK increased 42.7% and 51.7% respectively.
  • CASK in 4Q21 reached 33.91 cents, up 33.0% compared to 4Q19, mainly due to a 51.4% increase in fuel prices, the 35.6% depreciation of the real against the dollar and 15% inflation over the last 24 months, partially offset by cost reductions and productivity gains as we rebuild Azul as a more efficient airline. Over this period compared to 4Q19, we reduced fuel consumption per ASK by 4.7% and full-time employees by 5.3% while domestic capacity increased 17.5%.
  • Our EBIT and EBITDA were the highest since the onset of the pandemic. EBITDA in the quarter reached over R$1 billion, representing a margin of 27.5%. Operating income was R$524.9 million in the quarter, representing a margin of 14.1%.
  • Immediate liquidity position was R$4.1 billion, up 40.6% compared to the same period in 2019 and more than R$600 million above our guidance, mainly due to improvements in booking trends. During the quarter, Azul generated R$862 million in cash inflows minus operating expenses, offset by payments made to lessors and suppliers, deleveraging, interest and capital expenses.

To download the Earnings Release, click here.