Azul reports R$3.9b loss as value of Brazilain real tanks

Azul posted a R$3.87b ($703m) loss for Q2 of the year after the devaluation of the Brazilian Real to the dollar, as well as higher fuel costs, hit the company’s earnings. The real depreciated against the US dollar by 11.7% during the period, resulting in an increase in lease liabilities and loans denominated in foreign currency, the company said on 12 August. Adjusted for the exchange rates as well as unrealised derivative results and other financial expenses, Azul says it lost R$744m during the second three-month period of the year. That’s 31% more than last year. Revenue during the three months that ended on 30 June reached R$4.2b, down 2.3% compared to the same period a year ago. The decline was primarily due to the impact of floods in the southern Brazilian state of Rio Grande do Sul in May and the temporary reduction of the airline’s international capacity. International capacity as measured in available seat kilometres fell by 8% in the first half of the year. “Without these impacts, we estimate that our top-line revenues would have been above” Q2 last year, CE John Rodgerson says. Expenses during the period were R$3.7b, up slightly over last year. The airline ended the quarter with 181 aircraft in its operating fleet, one airframe more than at the same point during 2023.<br/>