Azul, the largest airline in Brazil by number of cities and departures, has reported its results for the second quarter of 2018 (2Q18). Net income adjusted for non-recurring items 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.
Passenger traffic (RPKs) increased 17.4% over a capacity increase of 18.6% resulting in a load factor of 80.1%, 0.8 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. 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, Azul’s total cash 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.
