Azul Reports June Results and Successful Execution of COVID-19 Management Plan


São Paulo, August 13th, 2020 – Azul S.A., “Azul” (B3:AZUL4, NYSE:AZUL) the best airline in the world according to TripAdvisor, announces today its results for the second quarter of 2020 (“2Q20”). The following financial information, unless stated otherwise, is presented in Brazilian reais and in accordance with International Financial Reporting Standards (IFRS).

Financial and Operating Highlights for 2Q20

  • Operating revenue was R$402 million, down 85% year over year due to severe reduction in air travel demand caused by the COVID-19 pandemic.
  • Operating expenses decreased 46% or R$ 1.0 billion year over year, mainly driven by lower capacity-related expenses and cost reduction initiatives.
  • Operating loss of R$820 million excluding non-recurring items.
  • Net loss excluding exchange rate and unrealized hedges totaled R$1.5 billion or R$4.28 cents per preferred share and US$2.38 cents per ADR.
  • During the quarter, Azul successfully executed its Management Plan generating over R$7 billion in cash savings between March 2020 and December 2021:

    – Immediate liquidity including cash and equivalents, short-term investments and accounts receivables was R$2.3 billion, beating the Company’s forecast of R$2.0 billion and increasing its cash position quarter over quarter. Total liquidity was R$6.6 billion, including long-term investments, unencumbered assets, maintenance reserves and deposits.

    – Total lease liabilities decreased 10.5% quarter over quarter to R$14.2 billion, even with a devaluation of the Brazilian real of 38%. Further deferral negotiations are expected to reduce lease liabilities to R$12.5 billion by December 2020.


    – Deferral of 82 aircraft deliveries between 2020 and 2023 to 2024 and beyond.

    – More than 10,500 crewmembers joined Azul’s leave of absence program leading to salary expenses reduction of 48% year over year.

  • In June, Azul signed a historical codeshare agreement with Latam Airlines. This is a low risk strategy to create incremental demand during this time of uncertainty.
  • Azul Cargo revenue was down only 0.8% in 2Q20 compared to 2Q19, even with a network capacity reduction of 83% year over year. The Company expects cargo revenue to increase year over year in the third quarter.
  • TwoFlex, recently rebranded Azul Conecta, was fully integrated into Azul generating higher synergies than expected and positive cash flow.
  • Azul was elected best airline in the world in the 2020 TripAdvisor Travelers’ Choice Awards. This is the third year in a row that the Company is ranked among the top 10 best airlines worldwide.

Manish Khandelwal
Manish Khandelwal

Manish Khandelwal, a travel-tech enthusiast with over a decade of experience in the travel industry. Founder and Editor-in-Chief of, he's passionate about writing.

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