Azul Reports 25 Percent Revenue Increase in Q1 2022
On Monday, Azul presented its Q1 2022 report, which it showed a significant increase in revenue when compared with the same period in 2019. This comparison reflects the outstanding performance of the company, as 2019 is the last year of growth before the pandemic hit the industry.
When compared with Q1 2021, the revenue difference is 74,9% with a 26,4% increase in capacity. The first quarter of 2022 is the second consecutive quarter with revenues above the pandemic levels: an impressive result, as the Omicron variant hit the first part of the period.
Azul’s EBITDA reached R$592.7 million (USD 115 million) in the quarter, representing a margin of 18.6%. Excluding the impact of the Omicron variant, EBITDA would have been close to R$900 million, or USD 175 million.
The company states that considering the current demand, fuel, and exchange rate scenario, it expects to generate a record EBITDA of R$4 billion (USD 780 million) in 2022, even with the impact of the Omicron variant in the first quarter.
Azul also projects an EBITDA of R$5.5 billion (USD 1,07 billion) in 2023, compared to our previous record EBITDA of R$3.6 billion (702 million) in 2019.
The carrier said that total capacity is expected to grow 10 percent in 2022 when compared with 2019, and with a significant recovery expected in the business traveler segment, as it is already at 71% of pre-pandemic levels.
The cargo market has reached R$300 million (USD 58 million), a 37.8 percent higher than Q1 2021 and three-folding the results of Q1 2019. Boosted by pandemic conditions, cargo operations proved to be impressively relevant.