Brazilian airline Azul to go 'back to basics' after challenging 2024

Brazilian airline Azul expects to go "back to basics" and be able to focus more on its operations this year, CE John Rodgerson said, after a challenging 2024 marked by some market disruptions and a major debt restructuring. "I am excited about 2025. It can't be worse than 2024," he told Reuters in an interview as the carrier reported on Monday fourth-quarter core earnings slightly above market expectations, with full-year figures matching its previously released outlook. Azul in 2024 struggled with supply chain issues delaying aircraft deliveries, floods that kept the key Porto Alegre airport closed for months, a weaker Brazilian real, and balance sheet pressures leading to debt deals with lessors. The carrier recently concluded the major restructuring that included the termination of almost $1.6b in debt from its balance sheet, while also raising $525m in fresh money. "We are well positioned as we have concluded all our renegotiation, so now we can focus a lot more on operations. I would say go back to basics and deliver the Azul product the market knows," Rodgerson said. "We did not do our best last year because we had to survive. Now that we are alive, time to go back to what we used to be." Azul expects to deliver earnings before interest, taxes, depreciation and amortization (EBITDA) of around 7.4b reais ($1.29b) this year, implying growth of around 22% when compared to 2024. In the fourth quarter, core earnings reached 1.95b reais, up 33% year-on-year, helped by higher passenger traffic and load factor. Rodgerson highlighted unit revenue was roughly flat on a yearly basis despite increased capacity.<br/>