Azul Reports Adjusted Net Income of R$1.2 billion in 2019

Operating margin was 24.1% in 4Q19 and 17.8% for the full year

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Mar 12, 2020, 07:45 ET

SÃO PAULO, March 12, 2020 /PRNewswire/ -- 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 2019 ("4Q19") and for the full year 2019. 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

Adjusted operating income was R$782.8 million in 4Q19, representing a record margin of 24.1%. Operating margin was 17.8% for the full year, in line with the Company's guidance and 2.1 percentage points higher than in 2018.
Adjusted EBITDA increased 61.8% to R$1.2 billion, representing a margin of 37.8% in 4Q19, making Azul one of the most profitable airlines in the world. For the full year, adjusted EBITDA increased 34.0% reaching R$ 3.6 billion.
Recurring net income totaled R$436.7 million, compared to R$96.6 million in 4Q18. For the full year, net income came in at R$1.2 billion, compared to R$896.6 million in 2018.
RASK increased 1.5% in 4Q19 and 3.4% in the full year compared to the same periods in 2018. Adjusted for stage-length, RASK increased 4.5% in 4Q19.
Passenger traffic grew 31.1% on a capacity increase of 30.5% resulting in a load factor of 83.4%, 0.4 percentage points higher than in 4Q18.
CASK decreased 6.6% in 4Q19 and increased 0.8% in 2019. Excluding the impact of the end of the payroll tax relief, CASK would have decreased 8.9% in 4Q19 and 1.9% in 2019.

To access the full report visit www.voeazul.com.br/ir

Conference Call Details

Thursday, March 12th, 2020
11:00 a.m. (EST) | 12:00 p.m. (Brasília time)
USA: +1 412 717-9627
Brazil: +55 11 3181-8565 or +55 11 4210-1803
Verbal Code: Azul
Webcast: www.voeazul.com.br/ir

Contact:

Investor Relations
Tel: +55 11 4831 2880
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Media Relations
Tel: +55 11 4831 1245
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SOURCE Azul S.A.