1Q24 Results
May 13, 2024
Bariloche, Argentina
Disclaimer
The information contained in this presentation is only a summary and does not purport to be complete. This presentation has been prepared solely for informational purposes and should not be construed as financial, legal, tax, accounting, investment or other advice or a recommendation with respect to any investment. This presentation does not constitute or form part of any offer or invitation for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.
This presentation includes estimates and forward-looking statements within the meaning of the US 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 these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to many significant risks, uncertainties and assumptions and are made reflecting information currently available to us.
These statements appear throughout this presentation and include statements regarding our intent, belief or current expectations in connection with changes in market prices, customer demand and preferences, competitive conditions, general economic, political and business conditions in Brazil, particularly in the geographic markets we serve and may serve in the future, our ability to keep costs low, existing and future governmental regulations, increases in maintenance costs, fuel costs and insurance premiums, our ability to maintain landing rights in the airports that we operate, air travel substitutes, labor disputes, employee strikes and other labor related disruptions, including in connection with negotiations with unions, our ability to attract and retain qualified personnel, our aircraft utilization rate, defects or mechanical problems with our aircraft, our ability to successfully implement our growth strategy, including our expected fleet growth, passenger growth, our capital expenditure plans, our future joint venture and partnership plans, our ability to enter new airports (including certain international airports) that match our operating criteria, management's expectations and estimates concerning our future financial performance and financing plans and programs, our level of debt and other fixed obligations, our reliance on third parties, including changes in the availability or increased cost of air transport infrastructure and airport facilities, inflation, appreciation, depreciation and devaluation of the real, our aircraft and engine suppliers and other factors or trends affecting our financial condition or results of operations, including those factors identified or discussed as set forth under "Risk Factors" in the prospectus included in our registration statement on Form F 1 (No 333 215908 filed with the Securities and Exchange Commission (the "Registration Statement").
In addition, in this presentation, the words "believe," "understand," "may," "will," "aim," "estimate," "continue," "anticipate," "seek," "intend," "expect," "should," "could," 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. We do not undertake any obligation to update publicly or to revise any forward-looking statements after we distribute this presentation 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. Considering the risks and uncertainties described above, the future events and circumstances discussed in this presentation might not occur and are not guarantees of future performance. Because of these uncertainties, you should not make any investment decision solely based upon these estimates and forward-looking statements.
In this presentation, we present EBITDA, which is a non-IFRS performance measure and is not a financial performance measure 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.
2
Our Tireless Volunteers Supporting Rio Grande do Sul
More than 1,300 tons of donations raised
3
Unique Business Model Delivering Solid Results
Only carrier in
82%
of our domestic routes
Exclusive Network and Diversified Fleet
Exposure to Brazil's fast-growing regions,
matching capacity to demand
Superior Customer Service
One of the industry's highest Net Promoter Scores and on-time performance
Industry-Leading Profitability
Further upside from growth and fleet transformation
Fast-Growth,High-Margin Businesses
Continued growth from logistics, loyalty, vacation and ancillaries
Optimized Capital Structure
Solid liquidity and improved debt profile
4
Unparalleled Connectivity: Belém Example
2024E Departures and Cities Served
(Belém Airport)
23
16,096
9
5
2,647 | 2,421 | ||
Competitor 1 | Competitor 2 | ||
Departures | Cities served | ||
31
daily departures
23
destinations
5
Azul's Ecosystem of Fast-Growth,High-Margin Businesses
Airline
Regional operation
Maintenance services
OnDemand
Loyalty
Vacations
Logistics
Charters
6
Azul's Best First Quarter in History
1Q24 Revenue
R$4.7 billion
1 | d |
r | |
Q | |
Rec | |
o |
1Q24 RASK
R$42.23 cents
1 | d | ||
r | |||
Q | |||
Rec | |||
o | |||
1Q24 EBIT | 1Q24 EBITDA |
1Q24 PRASK
R$39.33 cents
1 | d | |
r | ||
Q | ||
Rec | ||
o |
R$801 million | R$1.4 billion |
17.1% margin | 30.3% margin |
1 Q
R
r | |
o | |
ec |
d
1
Q R
r | |
o | |
ec |
d
Strong results and industry-leading profitability, with further upside from growth and fleet transformation
7
Continuing EBITDA Expansion
EBITDA
(R$ million)
30.3%
28.5% | Record |
First Quarter
23.3% | 1,415 | ||||
23.0% | |||||
18.6% | 1,030 | ||||
724 | 654 | ||||
593 | |||||
7.1% | |||||
130 | |||||
1Q19 | 1Q20 | 1Q21 | 1Q22 | 1Q23 | 1Q24 |
Resuming Azul's consistent margin expansion, only interrupted by Covid
Expecting EBITDA of ~R$6.5 billion in 2024, 79% higher than 2019
8
Adjusted for non-recurring items
Operational Leverage from Increased Aircraft Utilization
Aircraft Daily Utilization
(block-hours/day)
Avg 1Q23: 9.9 | Avg 1Q24: 11.5 |
13.6
12.2 | +11.5% |
10.7 | |
9.7 | +10.3% |
8.6 | |
7.0 | +22.9% |
1Q23 | 1Q24 |
ATR Embraer Airbus narrowbody
Strong demand and lower fuel prices enabling increase in aircraft utilization, improving efficiency
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Excludes freighters
Embraer E2 | E1 |
Enabling Sustainable Growth | |
Embraer E2 Fleet
(# aircraft)
+13 |
E2 superior economics enable
E2
33 |
20 |
80+ currently
unserved
routes
E2 vs E1
2023 | 2024E |
+15%
Seats vs. E1
-14%
Cost per trip vs. E1
-18%
Fuel Burn vs. E1
-26%
Cost per seat vs. E1
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Disclaimer
Azul SA published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 14:34:08 UTC.