UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2023
Commission File Number: 001-38049
Azul S.A.
(Name of Registrant)
Edifício Jatobá, 8th floor, Castelo Branco Office Park
Avenida Marcos Penteado de Ulhôa Rodrigues, 939
Tamboré, Barueri, São Paulo, SP 06460-040, Brazil.
+55 (11) 4831 2880
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ¨ No x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ¨ No x
| | Second Quarter Results 2023 |
Azul Reports Record Revenue
and EBITDA
for a Second Quarter in 2Q23
São Paulo, August 10, 2023 –
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 2023 (“2Q23”). 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
§
Operating revenue reached an all-time record for a second
quarter at R$4.3 billion, up 8.8% versus 2Q22 with 6.0% higher fares. Compared to 2Q19, operating revenue was up 63.1%, with 44.9% higher
fares.
§
EBITDA also reached an all-time record for a second quarter
at R$1.2 billion, an increase of R$542.3 million or 88.2% above 2Q22, with a margin of 27.1%,11.4 percentage points higher year over year.
§
Operating income reached R$591.9 million in the quarter,
an increase of R$455.5 million compared to 2Q22, representing a margin of 13.9%, 10.4 percentage points higher.
§
Passenger traffic (RPK) increased 10.0% on a capacity
growth of 8.4%, representing a load factor of 80%, 1.2 percentage points higher than 2Q22.
| § | PRASK and RASK also reached all-time
records for a second quarter at R$37.38 cents and R$40.42 cents, respectively. Compared to 2Q19, PRASK and RASK increased 22.6% and 25.9%,
respectively. |
Highlights¹ |
2Q23 |
2Q22 |
Change |
Total operating revenue (R$ million) |
4,269.4 |
3,924.8 |
8.8% |
Operating income (R$ million) |
591.9 |
136.5 |
455.5 |
Operating margin (%) |
13.9% |
3.5% |
+10.4 p.p. |
EBITDA (R$ million) |
1,156.9 |
614.6 |
542.3 |
EBITDA margin (%) |
27.1% |
15.7% |
+11.4 p.p. |
ASKs (million) |
10,563 |
9,741 |
8.4% |
Average fare (R$) |
550.1 |
518.8 |
6.0% |
RASK (R$ cents) |
40.42 |
40.29 |
0.3% |
PRASK (R$ cents) |
37.38 |
36.53 |
2.3% |
Yield (R$ cents) |
46.81 |
46.40 |
0.9% |
CASK (R$ cents) |
34.81 |
38.89 |
-10.5% |
CASK ex-fuel (R$ cents) |
22.15 |
21.46 |
3.2% |
Fuel cost per liter (R$) |
4.30 |
5.69 |
-24.5% |
¹ Operating results and EBITDA were adjusted for non-recurring
items. Please refer to page 11 for additional details.
| § | CASK in 2Q23 was 34.81 cents,
down 10.5% compared to 2Q22, mainly driven by the 24.5% reduction in fuel prices, cost reduction initiatives and productivity gains. Fuel
consumption per ASK dropped 3.8% in 2Q23 versus 2Q22, due to the higher number of next-generation aircraft in our fleet. |
| § | Immediate liquidity increased
to R$2.0 billion, compared to R$1.8 billion at the end of the previous quarter. This does not yet include the proceeds of the US$800 million
senior secured notes issued in July. |
| § | Our operational cash inflows
surpassed outflows by over R$1.0 billion, and we continued to deleverage with around R$1.8 billion in current lease payments, debt amortizations
and deferral repayments in the quarter. |
| § | Gross debt decreased R$1.1
billion in the quarter to R$20.6 billion. Azul’s leverage, measured as net debt to LTM EBITDA, decreased 1.0x in the quarter
from 5.2x in 1Q23 to 4.2x in 2Q23. Compared to 2Q22, leverage decreased by an impressive 2.1x. This does not yet reflect the reduction
in leverage expected from our capital optimization plan. |
| § | Fitch and S&P upgraded Azul
from CCC- to B-, reinforcing the strength of our balance sheet going forward. |
| § | Once again, Azul won the Skytrax
awards for Best Regional Airline and Best In-Flight Crew members in South America. |
| | Second Quarter Results 2023 |
Recent Developments
On June 13, Azul announced offers to exchange
the existing senior unsecured notes maturing in 2024 and 2026 on a par-for-par basis for long-term senior secured notes maturing in 2029
and 2030, respectively. The offers were launched with the support of noteholders representing more than 65% of the aggregate principal
amounts of notes outstanding, and ultimately reached a very high aggregate acceptance rate of 86%. The offers were settled on July 14,
2023 with the issuance of:
| · | US$294.2 million in principal
amount of 11.500% senior secured notes due 2029, issued in exchange for the 5.875% senior notes due 2024; and |
| · | US$568.2 million in principal
amount of 10.875% senior secured notes due 2030 issued in exchange for the 7.250% senior notes due 2026. |
On that same date, Azul concluded amendments
to the convertible debentures originally maturing on October 26, 2025 to, among other things, extend the maturity date to October 26,
2028.
In July, Azul also successfully concluded
a private offering of US$800 million aggregate principal amount of senior secured notes maturing in 2028 at a coupon of 11.930%. The offer
was 3x covered, enabling Azul to issue at the lowest annual coupon among our peers in the region.
This offering was the final step in our comprehensive
and permanent capital optimization plan. The speed of implementation, amicable nature and favorable outcome of this plan clearly demonstrate
Azul’s ability to execute and the vote of confidence given to our company by the market and our stakeholders. Azul intends to use
the net proceeds for repayment of certain existing debt, other obligations and for general corporate purposes.
Azul expects to also complete the previously
announced renegotiations of its obligations with lessors and OEMs no later than September 2023. This renegotiation was contingent on
the restructuring of certain of our debt obligations, which was achieved through the successful completion of the exchange offers, the
amendments to the convertible debentures and the raising of additional financing described above. This lessor and OEM renegotiation is
also subject to the finalization of certain definitive documentation and satisfaction of closing conditions. Pursuant to this renegotiation,
Azul will issue unsecured tradable notes maturing in 2030 with a coupon of 7.5% and will enter into master equity investment agreements
with lessors and OEMs to convert part of the restructured amounts into preferred shares of Azul. These shares will be issued in quarterly
installments commencing in 3Q24 and expected to be completed in 4Q27.
Azul estimates that the lease payments will reduce going forward by approximately by R$1.5 billion
in 2023 and R$1.1 billion in 2024, as illustrated below:
2023E Lease Payments
(R$ billion)
|
|
2024E Lease Payments
(R$ billion) |
|
|
|
Upon the conclusion of this capital optimization plan, Azul has no significant maturities expected until the end of 2028 and can now
rely on a strong balance sheet, leading liquidity position, and lower cost of capital to continue leveraging its superior network, product
offering, and cost structure.
| | Second Quarter Results 2023 |
Management Comments
The second quarter was one of the most important
ones in our history. We made significant progress on our permanent and comprehensive capital optimization plan, designed to strengthen
not only our balance sheet but also our liquidity position. Thanks to this work, in June we launched an exchange offer to extend the maturity
dates of our 2024 and 2026 notes to 2029 and 2030, and in July we successfully concluded this offer with a very high aggregate
acceptance rate of 86% of the principal outstanding.
Also in July, we raised an additional US$800
million in bonds maturing in 2028. The offer was 3x covered, enabling Azul to obtain the lowest coupon among our peers in the region.
None of this would have been possible without the incredible dedication from our 14,000 crewmembers, who every day deliver a world-class
operation and customer experience. I want to thank them for all they do for Azul, as well as the partners and stakeholders that supported
us and gave us their vote of confidence throughout our capital optimization plan.
Turning to our operational results, in 2Q23
we achieved record revenues for a second quarter, at R$4.3 billion, 8.8% up versus 2Q22. Revenue in 2Q23 has now reached impressive 163%
of the same period in 2019. PRASK and RASK were also second quarter records at R$37.38 cents and R$40.42 cents, respectively. Average
fares were up 6% versus last year, another very positive indicator of the underlying strength in our demand and the overall capacity and
pricing discipline in the market.
TudoAzul, our loyalty program, increased roughly
45% in gross billings compared to 2Q22 and achieved record redemption levels, 71% higher than the same period last year. Azul Viagens,
our vacations business, had another outstanding quarter, with over 40% growth in gross bookings compared to 2Q22. This business is now
4 times the size it was in 2019. Azul Cargo, our logistic business, maintained its stable performance and continues to be the largest
domestic air-logistics provider with a domestic market share of 34%.
We have effectively managed our costs, with
a 10.5% decrease in CASK in 2Q23 compared to 2Q22, mainly driven by the 24% reduction in fuel prices and our cost reduction initiatives
and productivity gains. Fuel consumption per ASK dropped 3.8% in 2Q23 due to our fleet transformation
and fuel-management initiatives, resulting in lower carbon emissions per ASK. Productivity measured in ASKs per FTE has also increased
and is now 13% higher than in 2019.
As a result of the strong demand and revenue
environment and our increased operational efficiency, our EBITDA grew a remarkable 88% year over year, reaching an all-time record for
a second quarter of R$1.2 billion, a margin of 27%.
Our total liquidity position reached R$5.5
billion, a R$260 million increase compared to the previous quarter, with our immediate liquidity at R$2.0 billion. This does not yet include
the proceeds of the US$800 million senior secured notes issued in July. Our leverage measured as net debt to LTM EBITDA decreased an impressive
1.0x in the quarter from 5.2x to 4.2x. This does not yet reflect the reduction in leverage expected from our capital optimization plan.
Looking ahead, we are excited for the upcoming
months as we enter the strongest seasonal period of the year with a very constructive demand, pricing and capacity environment. We expect
to leverage our strengthened balance sheet, liquidity position, and lower cost of capital to further enhance our sustainable growth. Once
again I want to thank all our crewmembers, partners and stakeholders for all their support. What we have achieved together is remarkable,
and the best is yet to come.
John Rodgerson, CEO of Azul S.A.
| | Second Quarter Results 2023 |
Consolidated Financial Results
The following income statement and operating
data should be read in conjunction with the quarterly results comments presented below.
Income statement (R$ million)¹ |
2Q23 |
2Q22 |
% Δ |
Operating Revenue |
|
|
|
Passenger revenue |
3,948.5 |
3,558.4 |
11.0% |
Cargo revenue and other |
320.9 |
366.3 |
-12.4% |
Total operating revenue |
4,269.4 |
3,924.8 |
8.8% |
Operating Expenses |
|
|
|
Aircraft fuel |
1,338.2 |
1,698.2 |
-21.2% |
Salaries and benefits |
568.5 |
451.5 |
25.9% |
Depreciation and amortization |
565.0 |
478.2 |
18.2% |
Airport fees |
247.0 |
223.7 |
10.4% |
Traffic and customer servicing |
189.5 |
150.8 |
25.7% |
Sales and marketing |
179.8 |
157.8 |
13.9% |
Maintenance and repairs |
200.3 |
168.3 |
19.0% |
Other |
389.2 |
459.9 |
-15.4% |
Total Operating Expenses |
3,677.5 |
3,788.3 |
-2.9% |
Operating Result |
591.9 |
136.5 |
333.8% |
Operating margin |
13.9% |
3.5% |
+10.4 p.p. |
EBITDA |
1,156.9 |
614.6 |
88.2% |
EBITDA margin |
27.1% |
15.7% |
+11.4 p.p. |
Financial Result² |
|
|
|
Financial income |
51.0 |
42.1 |
21.1% |
Financial expenses |
(1,135.0) |
(1,069.6) |
6.1% |
Derivative financial instruments, net |
(46.8) |
281.9 |
n.a. |
Foreign currency exchange, net |
1,036.8 |
(2,015.4) |
n.a. |
Result Before Income Taxes² |
497.9 |
(2,624.6) |
n.a. |
Income tax and social contribution |
- |
- |
n.a. |
Deferred income tax and social contribution |
- |
- |
n.a. |
Net Result² |
497.9 |
(2,624.6) |
n.a. |
Net margin |
11.7% |
-66.9% |
n.a. |
Adjusted Net Result³ |
(566.8) |
(721.4) |
-21.4% |
Adjusted net margin³ |
-13.3% |
-18.4% |
+5.1 p.p. |
Fully diluted shares⁴ |
424.9 |
408.0 |
4.1% |
Diluted EPS |
1.17 |
(6.43) |
n.a. |
Diluted EPS (US$) |
0.24 |
(1.31) |
n.a. |
Diluted EPADR (US$) |
0.71 |
(3.92) |
n.a. |
Adjusted EPS³ |
(1.33) |
(1.77) |
-24.6% |
Adjusted EPS³ (US$) |
(0.27) |
(0.36) |
-25.0% |
Adjusted EPADR³ (US$) |
(0.81) |
(1.08) |
-25.0% |
¹ Operating results and EBITDA were adjusted for
non-recurring items. Please refer to page 11 for additional details.
² Financial results adjusted for convertible debenture
expenses.
³ Net result and EPS/EPADR adjusted for unrealized
derivative results and foreign currency. One ADR equals three preferred shares (PNs).
4 Fully diluted shares adjusted for convertible
debentures.
| | Second Quarter Results 2023 |
Operating Data¹ |
2Q23 |
2Q22 |
% Δ |
ASK (million) |
10,563 |
9,741 |
8.4% |
Domestic |
8,282 |
8,571 |
-3.4% |
International |
2,281 |
1,170 |
95.0% |
RPK (million) |
8,435 |
7,670 |
10.0% |
Domestic |
6,490 |
6,666 |
-2.6% |
International |
1,945 |
1,004 |
93.8% |
Load factor (%) |
79.9% |
78.7% |
+1.2 p.p. |
Domestic |
78.4% |
77.8% |
+0.6 p.p. |
International |
85.3% |
85.8% |
-0.5 p.p. |
Average fare (R$) |
550.1 |
518.8 |
6.0% |
Passengers (thousands) |
7,178 |
6,858 |
4.7% |
Block hours |
133,590 |
129,655 |
3.0% |
Aircraft utilization (hours per day)² |
9.8 |
9.2 |
6.6% |
Departures |
77,867 |
77,219 |
0.8% |
Average stage length (km) |
1,131 |
1,077 |
5.0% |
End of period operating passenger aircraft |
181 |
167 |
8.4% |
Fuel consumption (thousands of liters) |
311,482 |
298,444 |
4.4% |
Fuel consumption per ASK |
29.5 |
30.6 |
-3.8% |
Full-time-equivalent employees |
14,007 |
13,193 |
6.2% |
End of period FTE per aircraft |
77 |
79 |
-2.0% |
Yield (cents) |
46.81 |
46.40 |
0.9% |
RASK (cents) |
40.42 |
40.29 |
0.3% |
PRASK (cents) |
37.38 |
36.53 |
2.3% |
CASK (cents) |
34.81 |
38.89 |
-10.5% |
CASK ex-fuel (cents) |
22.15 |
21.46 |
3.2% |
Fuel cost per liter (R$) |
4.30 |
5.69 |
-24.5% |
Break-even load factor (%) |
68.8% |
76.0% |
-7.2 p.p. |
Average exchange rate (R$ per US$) |
4.95 |
4.92 |
0.6% |
End of period exchange rate |
4.82 |
5.24 |
-8.0% |
Inflation (IPCA/LTM) |
4.96% |
11.89% |
-6.9 p.p. |
WTI (average per barrel, US$) |
71.84 |
108.52 |
-33.8% |
Heating oil (US$ per gallon) |
2.44 |
4.04 |
-39.5% |
¹ Operating results were adjusted for non-recurring
items. Please refer to page 11 for additional details.
² Excludes Cessnas and freighters
Operating Revenue
In 2Q23, Azul´s
total operating revenue reached R$4.3 billion compared to R$3.9 billion in the same period last
year, representing an increase of 8.8%, with passenger revenue increasing 11.0% on 8.4% higher capacity compared to the same period last
year. Compared to 2Q19, total operating revenue increased 63.1%.
PRASK reached record levels for a second quarter,
increasing 2.3% compared to 2Q22, enabled by our rational capacity deployment and the sustainable competitive advantages of our business
model. Total RASK was in line with 2Q22. Compared to 2Q19, RASK and PRASK increased 25.9% and 22.6%, respectively.
Cargo revenue and other totaled R$320.9 million,
12.4% lower than 2Q22, as we redeployed widebody aircraft from dedicated cargo operations to passenger service to take advantage of the
faster than expected recovery in international travel. In 2Q23, domestic cargo revenue grew 6.2% year-over-year due to strong domestic
demand for our logistics solutions and our exclusive network.
| | Second Quarter Results 2023 |
R$ cents¹ |
2Q23 |
2Q22 |
% Δ |
Operating revenue per ASK |
|
|
|
Passenger revenue |
37.38 |
36.53 |
2.3% |
Cargo revenue and other |
3.04 |
3.76 |
-19.2% |
Operating revenue (RASK) |
40.42 |
40.29 |
0.3% |
Operating expenses per ASK¹ |
|
|
|
Aircraft fuel |
12.67 |
17.43 |
-27.3% |
Salaries and benefits |
5.38 |
4.63 |
16.1% |
Depreciation and amortization |
5.35 |
4.91 |
9.0% |
Airport fees |
2.34 |
2.30 |
1.8% |
Traffic and customer servicing |
1.79 |
1.55 |
15.9% |
Sales and marketing |
1.70 |
1.62 |
5.1% |
Maintenance and repairs |
1.90 |
1.73 |
9.8% |
Other operating expenses |
3.68 |
4.72 |
-22.0% |
Total operating expenses (CASK) |
34.81 |
38.89 |
-10.5% |
Operating income per ASK (RASK/CASK) |
5.60 |
1.40 |
300.0% |
¹ Operating results were adjusted for non-recurring
items. Please refer to page 11 for additional details.
Operating Expenses
In 2Q23, we
recorded operating expenses of R$3.7 billion compared to R$3.8 billion in 2Q22, representing a
decrease of 2.9% mainly driven by a 24.5% reduction in fuel price, cost reduction initiatives and
productivity gains, partially offset by our capacity increase of 8.4%.
The breakdown of our main operating expenses
compared to 2Q22 is as follows:
| § | Aircraft fuel decreased 21.2% to R$1,338.2
million, mostly due to a 24.5% reduction in fuel price per liter and a reduction in fuel burn per ASK as a result of our more efficient
next-generation fleet, partially offset by 8.4% increase in total capacity. |
| § | Salaries and benefits increased 25.9% to
R$568.5 million, driven by our capacity increase of 8.4% and a 6% union increase in salaries as a result of collective bargaining agreements
with labor unions applicable to all airline employees in Brazil, partially offset by our higher employee productivity. |
| § | Depreciation and amortization
increased 18.2% or R$ 86.8 million, driven by the increase in the size of our fleet compared to 2Q22. |
§
Airport fees increased 10.4% or R$ 23.3 million,
mostly due to the increase in our capacity, especially the 95.0% increase in international capacity, which drives higher fees.
§
Traffic and customer servicing increased R$38.7
million, primarily due to the resumption of Azul’s renowned onboard service in 2Q22 after a two-year suspension due to the pandemic,
a 0.8% increase in the number of departures, especially international departures which have higher expenses, and the inflation in the
period.
§
Sales and marketing increased 13.9% to R$179.8
million, mostly driven by the 11.0% growth in passenger revenue, leading to an increase in credit card fees and commissions, and the increase
in international traffic, which has higher distribution costs.
| § | Maintenance and repairs
increased R$32.0 million compared to 2Q22, mainly due a 3.0% increase in block hours and higher number of maintenance events in the quarter,
partially offset by savings from the insourcing of maintenance events. |
| § | Other decreased 15.4%
or R$70.7 million, mainly due to a 50% reduction in our international cargo capacity and lower claims in the period, partially offset
by the 8.4% increase in passenger capacity and higher training expenses as we increased our operations over 2Q22. |
| | Second Quarter Results 2023 |
Non-Operating Results
Net financial results (R$ million)¹ |
2Q23 |
2Q22 |
% Δ |
Net financial expenses |
(1,084.0) |
(1,027.6) |
5.5% |
Derivative financial instruments, net |
(46.8) |
281.9 |
n.a. |
Foreign currency exchange, net |
1,036.8 |
(2,015.4) |
n.a. |
Net financial results |
(94.0) |
(2,761.1) |
-96.6% |
¹ Excludes convertible debentures expenses.
Net financial expenses were
R$1,084.0 million in the quarter, mainly from the R$635.9 million in leases recognized as interest expense and R$137.7 million in interest
on loans and financing in 2Q23.
Derivative
financial instruments resulted in a net loss of R$46.8 million
in 2Q23 mostly due to the reduction in fuel prices which led to fuel hedge losses during the period. As of June 30, 2023, Azul had hedged
approximately 16.0% of its expected fuel consumption for the next twelve months by using forward
contracts and options.
Foreign
currency exchange, net registered a non-cash foreign currency gain of R$1,036.8 million in 2Q23 due to the 5.1% end
of period appreciation of the Brazilian real against the US dollar in the quarter, resulting
in a decrease in lease liabilities and loans denominated in foreign currency.
Liquidity and Financing
The information below does not yet include
the impact of our capital optimization plan, namely the successful exchange offer and new issuance of senior secured notes in July and
the renegotiations with lessors and suppliers expected to be effective no later than September.
Azul ended
the quarter with total liquidity of R$5.5 billion, including long-term investments and receivables, security deposits, and maintenance
reserves. Immediate liquidity as of June 30, 2023 was R$2.0 billion, including cash and cash equivalents, short-term receivables, and
short-term investments, R$235.8 million higher than 1Q23, even after paying around R$2.2
billion in current aircraft leases, debt amortizations and interest, deferrals and Capex. This immediate
liquidity represented 11.6% of our LTM revenue.
Liquidity (R$ million) |
2Q23 |
1Q23 |
% Δ |
Cash, cash equivalents and short-term investments |
616.2 |
466.4 |
32.1% |
Accounts receivable |
1,418.8 |
1,332.9 |
6.4% |
Immediate liquidity |
2,035.0 |
1,799.2 |
13.1% |
Cash as % of LTM revenue |
11.6% |
10.4% |
+1.1 p.p. |
Long-term investments and receivables |
814.6 |
843.7 |
-3.4% |
Security deposits and maintenance reserves |
2,617.3 |
2,563.7 |
2.1% |
Total Liquidity |
5,466.9 |
5,206.6 |
5.0% |
Azul’s debt amortization schedule as of June 30, 2023 is set out below. The chart converts our dollar-denominated
debt to reais using the quarter-end foreign exchange rate of R$4.82 .
| | Second Quarter Results 2023 |
Loans and financial debt amortization as
of June 30, 2023
(R$ million converted at R$4.82 per dollar)¹
|
|
¹ Excludes convertible debentures and the impact of the capital optimization plan.
After the exchange of the 2024 and 2026 notes and the issuance of the 2028 notes, Azul has no significant maturities
expected for the next 5 years, as demonstrated in the chart below:
Loans and Financial Debt Amortization Post-Restructuring
(R$ million converted at R$4.82 per dollar)¹
|
|
¹ Excludes convertible debentures and equity instrument.
Includes exchange of the 2024 and 2026 notes and the 2028 notes recently issued.
| | Second Quarter Results 2023 |
Gross debt decreased R$1.1 billion to R$20.6
billion in the quarter, mostly due to a 5.1% end of period appreciation of the Brazilian real, our continued deleveraging process with
around R$1.2 billion in payments of loans and leases during the quarter, and R$527.7 million reduction in lease liabilities due to aircraft
exiting our fleet, partially offset by the addition of R$311.2 million in lease liabilities related to new aircraft entering our fleet.
Loans and financing (R$ million)¹ |
2Q23 |
1Q23 |
% Δ |
2Q22 |
% Δ |
Operating lease liabilities |
12,885.2 |
13,765.5 |
-6.4% |
13,023.1 |
-1.1% |
Finance lease liabilities |
589.5 |
734.6 |
-19.8% |
926.4 |
-36.4% |
Other aircraft loans and financing |
664.3 |
793.8 |
-16.3% |
1,108.4 |
-40.1% |
Loans and financing |
6,429.8 |
6,327.1 |
1.6% |
6,668.6 |
-3.6% |
% of non-aircraft debt in local currency |
25% |
19% |
+6.6 p.p. |
22% |
+3.3 p.p. |
% of total debt in local currency |
8% |
6% |
+2.4 p.p. |
7% |
+0.9 p.p. |
Gross debt |
20,568.8 |
21,621.0 |
-4.9% |
21,726.5 |
-5.3% |
¹ Considers the effect of hedges on debt.
Excludes convertible debentures and the impact of the capital optimization plan.
As of June 30, 2023, Azul’s average
debt maturity excluding lease liabilities and convertible debentures was 2.0 years, with an average interest rate of 9.8%. Average interest
rate on local and dollar-denominated obligations were equivalent to CDI + 5% and 6.8%, respectively.
Including the favorable impact from the exchange
of the 2024 and 2026 notes and the issuance of the 2028 notes, Azul’s average debt maturity as of June 30, 2023, would have been
4.4 years, with an average interest rate of 12.3%. Average interest rate on local and dollar-denominated obligations would be CDI + 5%
and 11%, respectively.
The table below presents additional information
related to our leases and includes both current and COVID-related deferral lease payments.
Lease payments (R$ million)¹ |
2Q23 |
1Q23 |
% Δ |
2Q22 |
% Δ |
Operating leases |
|
|
|
|
|
Payments made |
684.7 |
471.4 |
45.3% |
721.6 |
-5.1% |
Weighted average remaining lease term |
7.3 |
7.3 |
-0.9% |
7.7 |
-5.6% |
Finance leases |
|
|
|
|
|
Payments made |
50.0 |
52.7 |
-5.1% |
55.8 |
-10.4% |
Weighted average remaining lease term |
5.4 |
5.5 |
-2.1% |
5.2 |
3.8% |
1 Excludes the impact of the capital
optimization plan.
Azul’s
leverage ratio measured as net debt to LTM EBITDA decreased 2.1x year-over-year, from 6.3x to 4.2x.
We are confident in our ability to continue reducing leverage organically, a process that has been accelerated by our capital optimization
plan.
Key financial ratios (R$ million) |
2Q23 |
1Q23 |
% Δ |
2Q22 |
% Δ |
Cash¹ |
2,849.6 |
2,642.9 |
7.8% |
4,540.6 |
-37.2% |
Gross debt² |
20,568.8 |
21,621.0 |
-4.9% |
21,726.5 |
-5.3% |
Net debt |
17,719.2 |
18,978.1 |
-6.6% |
17,185.9 |
3.1% |
Net debt / EBITDA (LTM) |
4.2x |
5.2x |
-1.0x |
6.3x |
-2.1x |
¹ Includes cash, cash equivalents, receivables, short and long-term
investments.
² Excludes convertible debentures and the impact of the capital
optimization plan.
| | Second Quarter Results 2023 |
Fleet and Capital Expenditures
As of June 30, 2023, Azul had a passenger
operating fleet of 181 aircraft and a passenger contractual fleet of 196 aircraft, with an average aircraft age of 7.3 years excluding
Cessna aircraft. At the end of 2Q23, the 15 aircraft not included in our operating passenger fleet consisted of (i) 4 ATRs subleased to
TAP, (ii) 3 Embraer E1s subleased to Breeze, (iii) 6 Embraer E1s, 1 Airbus A330ceo and 1 ATR in the process of exiting the fleet.
Azul ended 2Q23 with approximately 79% of
its capacity coming from next-generation aircraft, higher than any competitor in the region.
Passenger Contractual Fleet¹ |
2Q23 |
1Q23 |
% Δ |
2Q22 |
% Δ |
Airbus widebody |
12 |
14 |
-14.3% |
12 |
- |
Airbus narrowbody |
54 |
53 |
1.9% |
50 |
8.0% |
Embraer E2 |
17 |
15 |
13.3% |
9 |
88.9% |
Embraer E1 |
47 |
47 |
- |
50 |
-6.0% |
ATR |
42 |
41 |
2.4% |
39 |
7.7% |
Cessna |
24 |
24 |
- |
19 |
26.3% |
Total¹ |
196 |
194 |
1.0% |
179 |
9.5% |
Aircraft under operating leases |
169 |
168 |
0.6% |
153 |
10.5% |
1 Includes 7 subleased aircraft.
Passenger Operating Fleet |
2Q23 |
1Q23 |
% Δ |
2Q22 |
% Δ |
Airbus widebody |
11 |
11 |
- |
11 |
- |
Airbus narrowbody |
54 |
53 |
1.9% |
50 |
8.0% |
Embraer E2 |
17 |
15 |
13.3% |
9 |
88.9% |
Embraer E1 |
38 |
42 |
-9.5% |
45 |
-15.6% |
ATR |
37 |
37 |
- |
33 |
12.1% |
Cessna |
24 |
24 |
- |
19 |
26.3% |
Total |
181 |
182 |
-0.5% |
167 |
8.4% |
Capex
Capital expenditures
totaled R$221.8 million in 2Q23, mostly due to the capitalization
of engine overhaul events and the acquisition of spare parts in the quarter.
(R$ million) |
2Q23 |
1Q23 |
% Δ |
Aircraft and maintenance and checks |
138.3 |
35.9 |
285.1% |
Intangible assets |
52.3 |
40.2 |
30.3% |
Other |
31.2 |
5.7 |
448.3% |
Capex |
221.8 |
81.8 |
171.3% |
| | Second Quarter Results 2023 |
Environmental, Social and Governance
(“ESG”) Responsibility
The table below presents Azul’s key
ESG information according to the Sustainability Accounting Standards Board (SASB) standard for the airline industry:
ESG Key Indicators |
2Q23 |
1Q23 |
% Δ |
Environmental |
|
|
|
Fuel |
|
|
|
Total fuel consumed per ASK (GJ / ASK) |
1,108 |
1,108 |
0.0% |
Total fuel consumed (GJ x 1000) |
11,701 |
11,963 |
-2.2% |
Fleet |
|
|
|
Average age of operating fleet¹ (years) |
7.3 |
7.2 |
1.4% |
Social |
|
|
|
Labor Relations |
|
|
|
Employee gender: male (%) |
59.7% |
59.9% |
-0.2 p.p. |
Employee gender: female (%) |
40.3% |
40.1% |
0.2 p.p. |
Employee monthly turnover (%) |
0.9% |
0.9% |
- |
Employee covered under collective bargaining agreements (%) |
100% |
100% |
- |
Volunteers (#) |
5,091 |
4,722 |
8% |
Governance |
|
|
|
Management |
|
|
|
Independent directors (%) |
91% |
91% |
- |
Percent of Board members that are women (%) |
18% |
18% |
- |
Board of Directors' average age (years) |
59 |
59 |
0.4% |
Director meeting attendance (%) |
100% |
97% |
3 p.p. |
Board size (#) |
11 |
11 |
- |
Participation of women in leadership positions (%) |
40% |
40% |
- |
¹ Excludes Cessna aircraft
Non-Recurring Items Reconciliation
Our results include the impacts of charges
that we deem non-recurring items and should not be considered to compare to prior or future periods.
In 2Q23, our operating results presented in
this release have been adjusted for non-recurring items totaling R$290.7 million, mainly due to fleet adjustments and redelivery items
related to lessor negotiations connected to our capital optimization plan totaling R$200.0 million, in addition to advisors fees and other
restructuring-related expenses totaling R$90.7 million.
The table below provides a reconciliation
of our reported amounts to the adjusted amounts excluding non-recurrent items:
2Q23 Non-recurring adjustments |
As recorded |
Adjustments |
Adjusted |
Operating revenue |
4,254.2 |
15.2 |
4,269.4 |
Operating expense |
3,953.0 |
(275.5) |
3,677.5 |
Airport fees |
249.4 |
(2.4) |
247.0 |
Maintenance and repairs |
223.3 |
(23.0) |
200.3 |
Depreciation and amortization |
627.2 |
(62.2) |
565.0 |
Other expense |
577.2 |
(188.0) |
389.2 |
Operating income |
301.2 |
290.7 |
591.9 |
Operating Margin |
7.1% |
+6.8 p.p. |
13.9% |
EBITDA |
928.4 |
228.5 |
1,156.9 |
EBITDA Margin |
21.8% |
+5.3 p.p. |
27.1% |
| | Second Quarter Results 2023 |
Conference Call Details
Thursday, August 10, 2023
11:00 a.m. (EDT) | 12:00 p.m. (Brasília time)
USA: +1 253 215-8782
Brazil: +55 11 4632-2236 or +55 21 3958-7888
Code: 819 4553 0141
Webcast: https://ri.voeazul.com.br/en/
About Azul
Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline
in Brazil by number of flight departures and cities served, offers 1,000 daily flights to over 160 destinations. With an operating fleet
of over 180 aircraft and more than 14,000 Crewmembers, the Company has a network of 300 non-stop routes as of June 2023. Azul was named
by Cirium (leading aviation data analysis company) as the most on-time airline in the world in 2022, being the first Brazilian airline
to obtain this honor. In 2020 Azul was awarded best airline in the world by TripAdvisor, the first time a Brazilian Flag Carrier earned
the number one ranking in the Traveler’s Choice Awards. For more information visit www.voeazul.com.br/ir.
Contact:
Investor Relations
Tel: +55 11 4831 2880
invest@voeazul.com.br
|
|
Media Relations
Tel: +55 11 4831 1245
imprensa@voeazul.com.br
|
|
| | Second Quarter Results 2023 |
Balance Sheet –
IFRS
(R$ million) |
June 30, 2023 |
March 31, 2023 |
June 30, 2022 |
Assets |
17,122.0 |
17,402.2 |
18,529.6 |
Current assets |
4,628.3 |
3,949.7 |
5,719.8 |
Cash and cash equivalents |
616.2 |
466.4 |
2,033.6 |
Short-term investments |
- |
- |
0.9 |
Accounts receivable |
1,351.2 |
1,267.1 |
1,561.4 |
Sublease receivables |
67.6 |
65.8 |
97.2 |
Inventories |
722.7 |
718.9 |
658.2 |
Security deposits and maintenance reserves |
1,286.0 |
941.0 |
438.8 |
Taxes recoverable |
188.0 |
234.7 |
159.1 |
Derivative financial instruments |
29.5 |
21.2 |
357.5 |
Prepaid expenses |
233.5 |
150.2 |
224.4 |
Other current assets |
133.5 |
84.5 |
188.6 |
Non-current assets |
12,493.7 |
13,452.5 |
12,809.7 |
Long-term investments |
742.1 |
753.8 |
701.9 |
Sublease receivables |
72.5 |
89.9 |
145.5 |
Security deposits and maintenance reserves |
1,331.3 |
1,622.8 |
1,753.5 |
Derivative financial instruments |
0.4 |
- |
186.0 |
Prepaid expenses |
188.5 |
194.0 |
390.6 |
Other non-current assets |
8.4 |
8.8 |
32.7 |
Right of use assets – leased aircraft and other assets |
6,040.2 |
6,629.6 |
5,468.5 |
Right of use assets – maintenance of leased aircraft |
717.9 |
764.5 |
787.5 |
Property and equipment |
1,924.6 |
1,925.5 |
1,970.4 |
Intangible assets |
1,467.8 |
1,463.7 |
1,373.1 |
Liabilities and equity |
17,122.0 |
17,402.2 |
18,529.6 |
Current liabilities |
16,823.0 |
15,884.4 |
13,569.4 |
Loans and financing |
1,694.5 |
1,400.8 |
1,257.8 |
Convertible instruments |
12.9 |
41.0 |
14.5 |
Leases |
4,641.3 |
4,578.7 |
3,463.5 |
Accounts payable |
2,912.6 |
2,715.7 |
1,722.7 |
Factoring |
- |
- |
660.1 |
Air traffic liability |
4,476.1 |
4,091.9 |
3,981.1 |
Salaries and benefits |
474.4 |
491.7 |
456.3 |
Insurance payable |
21.9 |
62.8 |
33.1 |
Taxes payable |
129.5 |
135.4 |
103.1 |
Derivative financial instruments |
120.5 |
139.9 |
65.9 |
Provisions |
1,006.7 |
1,079.1 |
991.3 |
Airport fees |
1,192.2 |
1,033.7 |
686.9 |
Other |
140.5 |
113.7 |
132.9 |
Non-current liabilities |
19,981.0 |
21,244.5 |
23,077.0 |
Loans and financing |
5,399.6 |
5,720.1 |
6,519.2 |
Convertible instruments |
1,641.5 |
1,482.7 |
1,434.9 |
Leases |
8,833.4 |
9,921.4 |
10,486.0 |
Accounts payable |
436.2 |
403.2 |
512.2 |
Derivative financial instruments |
0.1 |
- |
129.9 |
Provision |
2,071.2 |
2,140.4 |
2,378.3 |
Airport fees |
513.3 |
504.9 |
480.5 |
Other non-current liabilities |
1,085.7 |
1,071.8 |
1,136.1 |
Equity |
(19,682.0) |
(19,726.8) |
(18,116.8) |
Issued capital |
2,314.0 |
2,314.0 |
2,313.9 |
Advance for future capital increase |
0.8 |
- |
0.1 |
Capital reserve |
2,010.4 |
1,990.4 |
1,954.1 |
Treasury shares |
(13.1) |
(13.1) |
(12.9) |
Accumulated other comprehensive result |
5.3 |
5.3 |
5.8 |
Accumulated losses |
(23,999.4) |
(24,023.3) |
(22,377.7) |
| | Second Quarter Results 2023 |
Cash Flow Statement – IFRS
(R$ million) |
2Q23 |
2Q22 |
% Δ |
Cash flows from operating activities |
|
|
|
Net profit (loss) for the period |
23.9 |
(2,480.5) |
n.a. |
Total non-cash adjustments |
|
|
|
Depreciation and amortization |
627.2 |
478.2 |
31.2% |
Unrealized derivatives |
235.6 |
(592.5) |
n.a. |
Exchange gain and (losses) in foreign currency |
(1,096.7) |
2,087.4 |
n.a. |
Interest on assets and liabilities, net |
1,243.2 |
1,090.1 |
14.0% |
Provisions |
36.5 |
30.2 |
20.7% |
Result of lease agreements modification |
(27.6) |
(16.7) |
65.6% |
Other |
38.9 |
(20.6) |
n.a. |
Changes in operating assets and liabilities |
|
|
|
Trade and other receivables |
83.5 |
(259.5) |
n.a. |
Sublease receivables |
5.6 |
13.1 |
-57.2% |
Security deposits and maintenance reserves |
(131.4) |
(160.4) |
-18.1% |
Prepaid expenses |
(73.0) |
(71.5) |
2.1% |
Other assets |
(379.4) |
(84.1) |
351.2% |
Derivatives |
(74.7) |
169.7 |
n.a. |
Accounts payable |
629.3 |
494.3 |
27.3% |
Salaries and benefits |
(22.5) |
30.5 |
n.a. |
Air traffic liability |
400.9 |
881.2 |
-54.5% |
Contingencies |
(199.2) |
(46.5) |
328.0% |
Other liabilities |
(2.5) |
186.0 |
n.a. |
Interest paid |
(724.3) |
(466.5) |
55.3% |
Net cash generated (used) by operating activities |
593.3 |
1,261.8 |
-53.0% |
|
|
|
|
Cash flows from investing activities |
|
|
|
Short-term investment |
- |
0.6 |
n.a. |
Acquisition of subsidiary, net of cash acquired |
- |
(30.3) |
n.a. |
Acquisition of intangible |
(52.3) |
(30.1) |
74.0% |
Acquisition of property and equipment |
(169.5) |
(273.1) |
-37.9% |
Net cash generated (used) in investing activities |
(221.8) |
(332.9) |
-33.4% |
|
|
|
|
Cash flows from financing activities |
|
|
|
Loans and financing |
|
|
|
Proceeds |
600.0 |
(12.3) |
n.a. |
Repayment |
(253.4) |
(82.5) |
207.1% |
Lease repayment |
(567.4) |
(559.4) |
1.4% |
Factoring |
- |
(160.9) |
n.a. |
Treasury shares |
- |
(0.9) |
n.a. |
Net cash generated (used) in financing activities |
(220.0) |
(793.1) |
-72.3% |
|
|
|
|
Exchange gain (loss) on cash and cash equivalents |
(1.5) |
40.1 |
n.a. |
|
|
|
|
Net decrease in cash and cash equivalents |
149.9 |
175.9 |
-14.8% |
|
|
|
|
Cash and cash equivalents at the beginning of the period |
466.4 |
1,857.8 |
-74.9% |
|
|
|
|
Cash and cash equivalents at the end of the period |
616.2 |
2,033.6 |
-69.7% |
| | Second Quarter Results 2023 |
Appendix
Consolidated
Financial Results
The following revised income statement and operating data should be read in conjunction with the quarterly results comments
presented below.
Income statement (R$ million)¹ |
1H23 |
1H22 |
% ∆ |
Operating Revenue |
|
|
|
Passenger revenue |
8,118.4 |
6,401.4 |
26.8% |
Cargo revenue and other |
629.3 |
716.4 |
-12.2% |
Total operating revenue |
8,747.7 |
7,117.8 |
22.9% |
Operating Expenses |
|
|
|
Aircraft fuel |
3,011.6 |
2,887.2 |
4.3% |
Salaries and benefits |
1,105.9 |
885.7 |
24.9% |
Depreciation and amortization |
1,132.6 |
1,000.2 |
13.2% |
Airport fees |
509.4 |
422.8 |
20.5% |
Traffic and customer servicing |
385.1 |
283.8 |
35.7% |
Sales and marketing |
353.8 |
284.7 |
24.3% |
Maintenance and repairs |
358.2 |
315.5 |
13.5% |
Other |
836.7 |
830.9 |
0.7% |
Total Operating Expenses |
7,693.4 |
6,910.7 |
11.3% |
Operating Result |
1,054.3 |
207.1 |
409.0% |
Operating margin |
12.1% |
2.9% |
+9.1 p.p. |
EBITDA |
2,187.0 |
1,207.3 |
81.1% |
EBITDA margin |
25.0% |
17.0% |
+8.0 p.p. |
Financial Result² |
|
|
|
Financial income |
104.5 |
91.0 |
14.8% |
Financial expenses |
(2,330.6) |
(2,038.7) |
14.3% |
Derivative financial instruments, net |
(240.8) |
491.8 |
n.a. |
Foreign currency exchange, net |
1,588.3 |
1,283.0 |
23.8% |
Result Before Income Taxes² |
175.7 |
34.2 |
414.4% |
Income tax and social contribution |
- |
- |
n.a. |
Deferred income tax and social contribution |
- |
- |
n.a. |
Net Result² |
175.7 |
34.2 |
414.4% |
Net margin |
2.0% |
0.5% |
+1.5 p.p. |
Adjusted Net Result³ |
(1,294.4) |
(1,529.7) |
-15.4% |
Adjusted net margin³ |
-14.8% |
-21.5% |
+6.7 p.p. |
Fully diluted shares⁴ |
424.9 |
407.3 |
4.3% |
Diluted EPS |
0.41 |
0.08 |
393.1% |
Diluted EPS (US$) |
0.08 |
0.02 |
393.6% |
Diluted EPADR (US$) |
0.24 |
0.05 |
393.6% |
Adjusted EPS³ |
(3.05) |
(3.76) |
-18.9% |
Adjusted EPS³ (US$) |
(0.60) |
(0.74) |
-18.8% |
Adjusted EPADR³ (US$) |
(1.80) |
(2.22) |
-18.8% |
¹ Operating results were adjusted for non-recurring items.
² Financial results adjusted for convertible debentures expenses.
³ Net income (loss) and EPS/EPADR adjusted for unrealized derivative
results and foreign currency exchange rate. One ADR equals three preferred shares (PNs).
| | Second Quarter Results 2023 |
Operating Data¹ |
1H23 |
1H22 |
% ∆ |
ASK (million) |
21,362 |
18,805 |
13.6% |
Domestic |
16,787 |
16,596 |
1.2% |
International |
4,575 |
2,209 |
107.1% |
RPK (million) |
17,033 |
14,954 |
13.9% |
Domestic |
13,193 |
13,108 |
0.6% |
International |
3,840 |
1,845 |
108.1% |
Load factor (%) |
79.7% |
79.5% |
+0.2 p.p. |
Domestic |
78.6% |
79.0% |
-0.4 p.p. |
International |
83.9% |
83.5% |
+0.4 p.p. |
Average fare (R$) |
570.3 |
485.3 |
17.5% |
Passengers (thousands) |
14,236 |
13,189 |
7.9% |
Block hours |
271,292 |
246,957 |
9.9% |
Aircraft utilization (hours per day)² |
10.0 |
8.9 |
12.9% |
Departures |
156,606 |
145,200 |
7.9% |
Average stage length (km) |
1,146 |
1,101 |
4.1% |
End of period operating passenger aircraft |
181 |
167 |
8.4% |
Fuel consumption (thousands of liters) |
629,943 |
578,057 |
9.0% |
Fuel consumption per ASK |
29.5 |
30.7 |
-4.1% |
Full-time-equivalent employees |
14,007 |
13,193 |
6.2% |
End of period FTE per aircraft |
77 |
79 |
-2.0% |
Yield (cents) |
47.66 |
42.81 |
11.3% |
RASK (cents) |
40.95 |
37.85 |
8.2% |
PRASK (cents) |
38.00 |
34.04 |
11.6% |
CASK (cents) |
36.01 |
36.75 |
-2.0% |
CASK ex-fuel (cents) |
21.92 |
21.40 |
2.4% |
Fuel cost per liter (R$) |
4.78 |
4.99 |
-4.3% |
Break-even load factor (%) |
70.1% |
77.2% |
-7.1 p.p. |
Average exchange rate (R$ per US$) |
5.07 |
5.08 |
-0.1% |
End of period exchange rate |
4.82 |
5.24 |
-8.0% |
Inflation (IPCA/LTM) |
4.96% |
11.89% |
-6.9 p.p. |
WTI (average per barrel, US$) |
74.52 |
101.77 |
-26.8% |
Heating oil (US$ per gallon) |
2.68 |
3.55 |
-24.5% |
¹ Operating results were adjusted for non-recurring items.
² Excludes Cessnas and freighters
| | Second Quarter Results 2023 |
Glossary
Aircraft
Utilization
Average number of block hours per day per aircraft operated.
Available Seat Kilometers (ASK)
Number of aircraft seats multiplied
by the number of kilometers flown.
Completion Factor
Percentage of
accomplished flights.
Cost per ASK (CASK)
Operating expenses divided by available seat kilometers.
Cost per ASK ex-fuel (CASK ex-fuel)
Operating expenses
divided by available seat kilometers excluding fuel expenses.
EBITDA
Earnings before interest, taxes, depreciation,
and amortization, adjusted to exclude non-recurring items.
FTE (Full-Time Equivalent)
Equivalent number of employees assuming
all work full-time.
Immediate Liquidity
Cash, cash equivalents, short-term
investments and receivables
Load Factor
Number of passengers as a percentage
of number of seats flown (calculated by dividing RPK by ASK).
LTM
Last twelve months ended on the last
day of the quarter presented.
Revenue Passenger Kilometers (RPK)
One-fare paying passenger transported
one kilometer. RPK is calculated by multiplying the number of revenue passengers by the number of kilometers flown.
Passenger Revenue per Available
Seat Kilometer (PRASK)
Passenger revenue divided by available
seat kilometers (also equal to load factor multiplied by yield).
Revenue per ASK (RASK)
Operating revenue divided by available seat kilometers.
Stage Length
The average number of kilometers flown per flight.
Trip Cost
Average cost of each flight calculated by dividing total operating expenses by total number of departures.
Yield
Average amount paid per passenger to
fly one kilometer. Usually, yield is calculated as average revenue per revenue passenger kilometer, or cents per RPK.
| | Second Quarter Results 2023 |
This press release includes estimates and
forward-looking statements within the meaning of the U.S. federal securities laws. These estimates and forward-looking statements are
based mainly on our current expectations and estimates of future events and trends that affect or may affect our business, financial condition,
results of operations, cash flow, liquidity, prospects and the trading price of our preferred shares, including in the form of ADSs. Although
we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to many significant
risks, uncertainties and assumptions and are made in light of information currently available to us. In addition, in this release, the
words “may,” “will,” “estimate,” “anticipate,” “intend,” “expect,”
“should” and similar words are intended to identify forward-looking statements. You should not place undue reliance on such
statements, which speak only as of the date they were made. Azul is not under the obligation to update publicly or to revise any forward-looking
statements after we distribute this press release because of new information, future events or other factors. Our independent public auditors
have neither examined nor compiled the forward-looking statements and, accordingly, do not provide any assurance with respect to such
statements. In light of the risks and uncertainties described above, the future events and circumstances discussed in this release might
not occur and are not guarantees of future performance. Because of these uncertainties, you should not make any investment decision based
upon these estimates and forward-looking statements.
In this press release, we present EBITDA
and EBITDA margin, which are non-IFRS performance measures and are not financial performance measures determined in accordance with IFRS
and should not be considered in isolation or as alternatives to operating income or net income or loss, or as indications of operating
performance, or as alternatives to operating cash flows, or as indicators of liquidity, or as the basis for the distribution of dividends.
Accordingly, you are cautioned not to place undue reliance on this information.
| | Second Quarter Results 2023 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date:
August 10, 2023
Azul S.A.
By: /s/ Alexandre Wagner Malfitani
Name: Alexandre Wagner Malfitani
Title: Chief Financial Officer
Azul (NYSE:AZUL)
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