Azul’s Q3 revenue up 61% on leisure-travel demand

Demand for leisure travel and a shift in working behaviour pushed Brazilian airline Azul’s Q3 revenue to a new record, yet the company still lost R$1.65b ($308m) in the period. Now, the Sao Paulo-headquartered airline is gearing up for the busy Southern Hemisphere summer travel season. The carrier said on 11 November that its operating revenue during the three months ending on 30 September reached an all-time record for the second consecutive quarter, at R$4.4b. That is 61% more than the R$2.7b the company posted in the same quarter last year and 44% more than in the same three months during pre-pandemic 2019. The third quarter was the fourth consecutive three-month period in which Azul’s revenue exceeded pre-pandemic levels, the airline says. It’s third-quarter capacity was 6.5% higher than last year, and load factor reached 82%. “This performance was a direct result of the strong demand environment, which we expect to continue given the positive trends for economic activity and employment in Brazil,” says chief executive John Rodgerson. “Brazilians seem to be benefiting from more flexible work arrangements, enabling a higher number of leisure trips.” Leisure demand has been higher than 2019 levels for 14 consecutive months, Azul adds. The airline’s costs rose 54% to R$4b during the period, largely due to increasing jet fuel expenses. The company paid an average of R$6.05 per litre of fuel during the third quarter, more than double the amount in 2019. The price of fuel is not expected to fall soon.<br/>