Azul (AZUL4) Q4 2023 earnings summary

Executive summary

• FY23 record revenue of R$18.7bn and adjusted EBITDA of R$5.2bn, up R$2bn YoY; 2023 guidance delivered.

• 4Q23 revenue, RASK and PRASK reached all-time highs; strong operating performance supported cash generation and lower leverage.

Financial highlights

• 4Q23 revenue was R$5.0bn, up 13% YoY and 55% vs. 4Q19.

• Adjusted 4Q23 EBIT was R$883m with a 17.6% margin; adjusted EBITDA was R$1.5bn with a 29.2% margin.

• FY23 adjusted EBITDA reached R$5.2bn, up R$2bn YoY, with a 27.9% margin; adjusted FY22 EBITDA was R$3.2bn with a 20.3% margin.

• 4Q23 RASK was R$45.30 cents and PRASK R$42.01 cents, each up 6% YoY; RASK was up 35% vs. 4Q19 and PRASK up 31%.

Outlook and guidance

• FY24 guidance: total ASK +11% vs. FY23, EBITDA ~R$6.5bn, and leverage below 3x.

• EBITDA guidance increased on continued strong demand and cost-saving opportunities.

• 4Q24E aircraft daily utilization targets: ATR 8.5 block-hours, Embraer 11.3, and Airbus narrowbody 14.3; freighters excluded.