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AZUL Posts Wider-Than-Expected Q1 Loss, Sees Y/Y Revenue Rise

Azul S.A. (AZUL) incurred a loss of 57 cents per share in the first quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 53 cents. Loss per share was 99 cents in the first quarter of 2023.

Total revenues of $945 million lagged the Zacks Consensus Estimate of $968.2 million but increased year over year. The year-over-year improvement was due to a healthy demand environment (both domestic and international), robust ancillary revenues, and growth in the company’s other business units.

With more people taking to the skies, Azul’s passenger revenues, contributing 93.1% to the top line, rose 4.5% year over year (on 2.6% higher total capacity). Cargo and other revenues grew 4.2% year over year owing to the solid performance of the company’s cargo and vacation businesses.

AZUL Price, Consensus and EPS Surprise

AZUL Price, Consensus and EPS Surprise
AZUL Price, Consensus and EPS Surprise

AZUL price-consensus-eps-surprise-chart | AZUL Quote

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Consolidated traffic, measured in revenue passenger kilometers (RPKs), increased 1.7% (up 4.8% in domestic but down 9.6% on the international front) year over year. Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, increased 2.6% from the first quarter of 2023, with a 6% rise in domestic capacity and a 10.3% decline in international capacity. Since traffic surge did not outpace the amount of capacity expansion, the load factor (percentage of seats filled with passengers) fell 0.7 percentage points to 78.9%.

Azul’s total revenues per ASK or RASK soared 1.8%, and passenger revenues per ASK or PRASK increased 1.9% year over year.

Cost per ASK (CASK) decreased 5.9% from the year-ago quarter due to a 19.1% reduction in fuel prices. CASK, excluding fuel, grew 5.1% year over year.

Average fare surged 2.3% from first-quarter 2023 figure.

Azul exited the first quarter with total liquidity of R$5.98billion. Gross debt increased 12.8% year over year.

For 2024, Azul continues to anticipate an EBITDA of around R$6.5 billion,

Currently, Azul carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Transportation Companies

Delta Air Lines DAL reported first-quarter 2024 earnings (excluding 39 cents from non-recurring items) of 45 cents per share, which comfortably beat the Zacks Consensus Estimate of 36 cents. Earnings increased 80% on a year-over-year basis.

Revenues of $13.75 billion surpassed the Zacks Consensus Estimate of $12.84 billion and increased 7.75% on a year-over-year basis, driven by strong air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $12.56 billion, up 6% year over year.

United Airlines Holdings, Inc.UAL reported first-quarter 2024 loss per share (excluding 23 cents from non-recurring items) of 15 cents, which was narrower than the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago reported quarter, UAL reported a loss of 63 cents per share.

Operating revenues of $12,539 million beat the Zacks Consensus Estimate of $12,428.4 million. The top line increased 9.7% year over year due to upbeat air-travel demand. This was driven by a 10.1% rise in passenger revenues (accounting for 90.2% of the top line) to $11,313 million. Almost 39,325 passengers traveled on UAL flights in the first quarter, up 6.8% year over year.

J.B. Hunt Transport Services, Inc.’s JBHT first-quarter 2024 earnings of $1.22 per share missed the Zacks Consensus Estimate of $1.53 and declined 35.5% year over year.

JBHT’s total operating revenues of $2,944 million missed the Zacks Consensus Estimate of $3,117.1 million and fell 8.8% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 7% year over year. The downfall was owing to a 9% decrease in segment gross revenue per load in both Intermodal (JBI) and Truckload (JBT), 22% fewer loads in Integrated Capacity Solution (ICS), and a modest decline in average trucks and productivity in Dedicated Contract Services (DCS). Revenue declines in JBI, ICS, JBT and DCS were partially offset by Final Mile Services (FMS) revenue growth of 2%, primarily driven by new contracts implemented over the past year.

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