Corporate travel, cargo drives Azul’s earnings higher

Brazil’s Azul reported sharply higher revenue during the first quarter of 2022 as corporate travel increases and the company’s logistics business thrives. The Sao Paulo-based carrier says on 9 May it is now flying to 151 cities, 35 more than in pre-pandemic 2019, and planning to add more destinations. “Over time, the growth from these new destinations will add considerable demand to our network, reinforcing our growth strategy,” says CE John Rodgerson. “We ended the quarter with nine consecutive months of strong and improving leisure demand, while we saw corporate bookings accelerating rapidly, allowing us to raise fares to offset rising fuel prices.” The company’s operating revenue in the first quarter was R$3.2b ($630m), up almost 75% from the same three months last year, and 26% more than in Q1 in pre-pandemic 2019. It was the second consecutive quarter with net revenue exceeding pre-pandemic levels, even with the impact of the Omicron variant in the early part of the period, Azul says. Costs also rose, to R$3.1b, compared to R$2b in Q1 2021. That 53% gain primarily results from a 57% increase in jet fuel prices and a capacity increase of more than 26%, the carrier says.<br/>