During the second quarter of 2018, Azul reported net income adjusted for non-recurring items of R$238.3 million, compared to a net loss of R$38.6 million in 2Q17. The airline’s adjusted operating income was R$75.8 million yielding a margin of 3.7% compared with R$98.8 million and a margin of 5.8% in 2Q17.
Passenger traffic (RPKs) increased 17.4% over a capacity increase of 18.6% resulting in a load factor of 80.1%, 0.8 percentage points lower than in 2Q17.
In addition to the double-digit growth in capacity, RASK and PRASK adjusted for the loss in revenue from the truckers’ strike in Brazil increased 1.6% and 1.1% year over year. Assuming a flat stage-length, RASK rose 8.1% year over year.
Adjusted CASK ex-fuel increased 0.3%, despite the 12.2% devaluation of the Brazilian real. On an exchange rate neutral basis, CASK ex-fuel would have been lower by 5.1%.
Net financial expenses decreased 26.9% from R$111.8 million to R$81.8 million due to lower average cost of debt and lower leverage year over year.
At the end of 2Q18, Azul’s total cash and receivables position totalled R$3.8 billion, representing 45% of the last twelve months’ revenues.
Azul’s operating fleet totalled 121 aircraft at the end of the quarter, including 15 next-generation A320neo aircraft, representing 24% of total capacity.
TudoAzul recorded a 38% year over year increase in gross billings ex-Azul.
Azul cargo recorded a 64% year over year increase in revenue.