Azul Reports Net Income of R$304 Million in 4Q17 and R$529 Million for the Full Year
March 08 2018 - 5:45AM
Business Wire
Operating margin was 13.9% in 4Q17 and 11.1% in 2017
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 fourth quarter of 2017 (“4Q17”) and for the full
year 2017. 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 for 4Q17
- Operating income was R$305.6 million,
representing a margin of 13.9% compared to R$170.0 million and a
margin of 9.3% in 4Q16. This is a record fourth quarter operating
result for Azul and was achieved even with the 16.0% increase in
fuel prices year over year. Operating margin was 11.1% for the full
year compared to 5.2% in 2016.
- EBITDAR increased 27.9% to R$674.2
million, representing a margin of 30.7%, making us one of the most
profitable carriers in South America.
- Net income totaled R$303.7 million,
representing an improvement of R$252.4 million over 4Q16. Net
income in 2017 came in at R$529.0 million, compared to a net loss
of R$126.3 million the year before.
Financial results (R$
million) 4Q17 4Q16 % ∆ 2017
2016 % ∆ Operating revenues 2,194.3 1,820.6 20.5 %
7,789.5 6,669.9 16.8 % Operating expenses (1,888.7 ) (1,650.6 )
14.4 % (6,924.5 ) (6,325.6 ) 9.5 % Operating income 305.6 170.0
79.8 % 865.0 344.3 151.3 % Operating margin 13.9 % 9.3 % +4.6 p.p.
11.1 % 5.2 % +5.9 p.p. EBITDA 359 245 46.3 % 1,165 645 -69.2 %
EBITDA margin 16.4 % 13.5 % 21.4 % 0 0 9.4 % EBITDAR 674.2 527.1
27.9 % 2,346.5 1,806.4 29.9 % EBITDAR margin 30.7 % 29.0 % +1.7
p.p. 30.1 % 27.1 % +3.0 p.p. Net income (loss) 303.7 51.3 491.9 %
529.0 (126.3 ) 518.8 % Net income (loss) per PN share* (R$) 0.91
0.19 378.9 % 1.68 (0.55 ) 405.5 % Net income (loss) per ADS (US$)
0.83 0.17 388.2 % 1.52 (0.51 ) 398.0 % * One ADS equals three
preferred shares (PNs)
- Passenger traffic (RPKs) grew 12.7% on
a capacity increase of 10.2% resulting in a load factor of 82.7%,
1.9 percentage points higher than in 4Q16.
- Total revenue per ASK (RASK) increased
9.4% to 33.73 cents year over year even with a double-digit growth
in capacity.
- Net financial expenses decreased 34.4%
from R$122.0 million to R$80.0 million.
- At the end of 4Q17, our total cash1
position totaled R$3.6 billion, representing 45.7% of the last
twelve months’ revenues.
- Azul ended the year with a total debt
position of R$3.5 billion resulting in an adjusted net debt to
EBITDAR leverage ratio of 3.9x compared to R$4.0 billion and a
leverage of 5.7x in 2016.
- Azul’s operating fleet totaled 122
aircraft at the end of the quarter, including 12 next-generation
A320neo aircraft.
- On October 19th, Azul Investments LLP
priced an offering of US$400.0 million aggregate principal amount
of 5.875% senior unsecured notes due 2024.
- TudoAzul recorded a 33.7% increase in
gross billings (ex-Azul) in 2017 compared to 2016.
- In December, Azul signed an MoU with
Correios, Brazil’s postal service, for the creation of a private
integrated logistics company. Azul will own 50.01% of the new
company after the agreement is approved by Brazilian
authorities.
- Azul ranked as the most on-time airline
in Brazil and the most on-time low-cost carrier in the Americas in
2017 according to OAG’s Punctuality League, the industry's most
comprehensive annual ranking of on-time performance.
To retrieve the full version of this press release visit
www.voeazul.com.br/IR
About Azul
Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil
by number of cities served, offers 766 daily flights to 104
destinations. With an operating fleet of 122 aircraft and more than
10,000 crewmembers, the company has a network of 223 non-stop
routes as of December 31, 2017. Among other awards received in
2017, Azul was elected third best airline in the world by
TripAdvisor Travelers' Choice and best low cost carrier in South
America for the seventh consecutive time by Skytrax. Azul also
ranked as most on-time airline in Brazil and most on-time low-cost
carrier in the Americas in 2017 according to OAG’s Punctuality
League, the industry's most comprehensive annual ranking of on-time
performance. For more information visit www.voeazul.com.br/ir.
1Includes cash and cash equivalents, short-term and long-term
investments, restricted investments, and accounts receivables.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180308005507/en/
Azul S.A.Investor RelationsAndrea Bottcher, +55 11
4831 2880invest@voeazul.com.brorMedia Relations+55 11 4831
1245imprensa@voeazul.com.br
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