Brazil's Azul lowers 2023 earnings forecast but sees better 2024

Brazilian airline Azul on Tuesday reduced its forecast for core earnings this year due to slower capacity growth and higher jet fuel price volatility but raised its view on 2024, lifting its Sao Paulo-traded shares. Azul, which also reported better-than-expected Q3 results in the day, cut its forecast for 2023 earnings before interest, taxes, depreciation and amortization (EBITDA) to about 5.2b reais ($1.06b) from some 5.5b. The company said in a securities filing the move was related to a fresh projection of available seats per kilometer (ASK) - a measure of capacity - expanding by 11% in 2023, down from an earlier forecast of 14%. Longer term outlook, however, was brighter from Brazil's largest carrier by number of flights and cities served, helping its shares jump more than 6% in the day - among the top gainers on Brazil's Bovespa stock index (.BVSP), which rose 2%. Azul said it now expects about 6.3b reais in 2024 EBITDA, up from a previous outlook of "more than 6b", due to continued demand strength and an accelerated fleet renewal process. "We remain encouraged by the industry environment," CEO John Rodgerson said in a statement, "with robust demand, strong tariff dynamics and disciplined capacity addition, especially during the upcoming high season."<br/>