Azul's first-quarter operating revenue hit a record RS$ 4.5bn (US$ 920 million) after a year-on-year increase of over 40%.
The revenue surge could not prevent an adjusted net loss of over RS$ 727 million, a 10% improvement on Q1 2022.
The Brazilian airline's earnings (EBITDA) came to R$1.03bn, for a margin of 23.0%, after a 73.8% increase compared to Q1 2022 and despite a 23.6% jumo in fuel prices.
Operating income was R$462.4 million in the quarter, a margin of 10.3%.
The carrier ended the Q1 2023 period with liquidity of R$1.8bn, as "operational cash inflows" surpassed outflows by over R$1.4bn.
"We continued to deleverage with around R$1.0 billion in debt amortisations, current and COVID-related deferral lease payments, and R$765.5 million in supply chain financing repayment," the company announced on May 15.
Gross debt fell b y R$194.5 million to R$21.6bn, meaning the airline's leverage, measured as net debt to LTM EBITDA, decreased 0.5x quarter-on-quarter to 5.2x.
The cost per available seat kilometre (ASK) for Q1 2023 37.19 cents, up 8% year-on-year. Minus fuel, CASK was up 1.7%,m while productivity measured in ASKs per FTE increased 13%. Fuel consumption per ASK dropped 4.4%, which Azul said was "a result of the higher number of next-generation aircraft in our fleet".
Passenger revenue per available seat kilometre and revenue per available seat kilometre "were at record levels for a first quarter after 23.1% and 17.7% increases.
"Yield also reached an all-time record for a first quarter at R$48.5 cents, an increase of 24.2%", the carrier added.
"During the first months of 2023, we continued the implementation of our permanent restructuring plan to address the
remaining effects from COVID-19 in our capital structure," said chief executive John Rodgerson, adding that the carrier's management "could not be more excited with the trends we are seeing in the demand environment combined
with the steep fall in fuel prices".