The Brazilian airline Azul closed the first nine months of the year with adjusted net losses of 1,237 million reais (198 million euros), which implies a 67.9% reduction in the “red figures” compared with the same period of the previous financial year.
According to the financial report released by the company, if adjustments for unrealized results from derivatives and for changes in exchange rates were excluded, Azul would have obtained a profit of 215.9 million reais (34.6 million euros), a decrease of 84.9% year-on-year.
Revenue barely changed, with an increase of 0.1%, to reach 16,086 million reais (2,575 million euros). Of that total, 14,812 million reais (2,371 million euros) came from the passenger transportation business, while the cargo area contributed 1,274 million reais (204 million euros).
At the same time, Azul’s total operating expenses increased by 5.7%, reaching 14,640 million reais (2,344 million euros). The gross operating result (Ebitda) was under pressure and fell by 24.4%, to 3,414 million reais (546.6 million euros).
If only the third quarter is observed, the airline recorded adjusted net losses of 121.5 million reais (19.5 million euros) and revenue of 5,636 million reais (902.3 million euros), which represents declines of 92.2% and 1.8%, respectively, compared with the same stretch of the previous year.
The company’s net debt at the end of the quarter stood at 18,550 million reais (2,970 million euros), a cut of 45.2% compared with the figure from a year earlier, although with an increase of 4.5% with respect to the second quarter of the financial year.
"The third quarter has shown that Azul’s transformation is bearing fruit. We are keeping the promises we made when we left the restructuring: strengthening our liquidity position, restructuring the network according to profitability, and improving the quality of our product and of our operations," Azul’s chief executive officer, John Rodgerson, has said.
"Looking to the future, we rely on the path we have set out on. Demand remains solid, operations and customer satisfaction continue to improve, and each milestone we reach strengthens our balance sheet. Azul is well positioned to continue increasing profitability, generate free cash flow, and create long-term value for our customers, crew, and shareholders," he has assured.
Investment from American Airlines and support for fuel
The Latin American airline has stated that supervisors authorized last October an injection of capital into American Airlines in Azul amounting to 100 million dollars (90.5 million euros), an operation that has already been completed.
Likewise, the company has obtained a line of credit from the Government of Brazil for up to 2.000 million reals (320.2 million euros), intended to finance fuel purchases during the fourth quarter of 2026 and the first of 2027.