a330 900 msn1876 azul taking off
Azul Linhas Aéreas published its financial results for the fourth quarter of 2024 (4Q24) and the whole year on February 24, 2025. The data indicates strong operational performance, but the impacts of exchange rate fluctuations continue to affect the company’s financial results.
In the last quarter of the year, the company achieved an operational profit of USD 212 million, a 40.2% increase compared to the same period in 2023. However, exchange rate losses amounted to USD 696.9 million, resulting from the 13.7% depreciation of the Brazilian real against the dollar, negatively impacting the balance sheet. As a result, the company recorded a net loss of USD 677.7 million in 4Q24, reversing the USD 69 million profit obtained in 4Q23.
The trend throughout the year followed the same pattern. Operational profit in 2024 reached USD 601.4 million, representing a 21% increase compared to 2023. However, exchange rate losses totaled USD 1.225 billion, leading to a net loss of USD 1.411 billion for the year. In 2023, this figure stood at a negative USD 119.9 million.
Despite the loss, Azul recorded a record EBITDA of USD 334.2 million in 4Q24, marking a 33% growth over 4Q23 and reaching USD 1.039 billion for the entire year. The EBITDA margin for the quarter was 35.2%, one of the highest in the sector. The increase in operational revenue, which reached USD 942.5 million in 4Q24, was driven by higher demand and the growth of business units, which contributed 23% of unit revenue (RASK) and 24% of EBITDA.
Other highlights include an 84.2% occupancy rate in 4Q24, a 4.2 percentage point increase compared to the same period in 2023, and a reduction in CASK (cost per available seat-kilometer), reflecting lower fuel prices and operational efficiency initiatives. Immediate liquidity at the end of the quarter stood at USD 531.5 million, representing a 22.5% increase compared to 3Q24.
These results come as Azul moves forward with a strategic plan to strengthen its position in the Brazilian aviation market. As part of this effort, the company announced a planned merger with Gol Linhas Aéreas Inteligentes in January 2025. The merger aims to consolidate operations and create a dominant carrier, potentially controlling around 60% of the domestic market, surpassing LATAM Airlines’ current 40% share. The Brazilian government has expressed support for the merger, viewing it as a measure to strengthen the aviation sector and prevent potential bankruptcies.
However, the proposed merger has raised concerns about market competition and potential fare increases. LATAM Airlines, significantly affected by the deal, has indicated that antitrust regulators should implement measures to prevent excessive market concentration. Brazil’s antitrust authority, CADE, is expected to review the merger thoroughly.
Views: 77
