Azul Reports Net Income of R$304 Million in 4Q17 and R$529 Million for the Full Year
Operating margin was 13.9% in 4Q17 and 11.1% in 2017

São Paulo, March 8th, 2018 - Azul S.A., "Azul" (B3:AZUL4, NYSE:AZUL) the largest airline in Brazil by number of cities and departures, announces today its results for the fourth quarter of 2017 ("4Q17") and for the full year 2017. 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 4Q17

  • Operating income was R$305.6 million, representing a margin of 13.9% compared to R$170.0 million and a margin of 9.3% in 4Q16. This is a record fourth quarter operating result for Azul and was achieved even with the 16.0% increase in fuel prices year over year. Operating margin was 11.1% for the full year compared to 5.2% in 2016.
  • EBITDAR increased 27.9% to R$674.2 million, representing a margin of 30.7%, making us one of the most profitable carriers in South America.
  • Net income totaled R$303.7 million, representing an improvement of R$252.4 million over 4Q16. Net income in 2017 came in at R$529.0 million, compared to a net loss of R$126.3 million the year before.
  • Passenger traffic (RPKs) grew 12.7% on a capacity increase of 10.2% resulting in a load factor of 82.7%, 1.9 percentage points higher than in 4Q16.
  • Total revenue per ASK (RASK) increased 9.4% to 33.73 cents year over year even with a double-digit growth in capacity.
  • Net financial expenses decreased 34.4% from R$122.0 million to R$80.0 million.
  • At the end of 4Q17, our total cash position was R$3.6 billion, representing 45.7% of the last twelve months’ revenues.
  • Azul ended the year with a total debt position of R$3.5 billion resulting in an adjusted net debt to EBITDAR leverage ratio of 3.9x compared to R$4.0 billion and a leverage of 5.7x in 2016.

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