Azul Increases Net Income by R$152 Million in 1Q18
Operating margin was a record 12.5% despite the 21% increase in oil YoY

São Paulo, May 10th, 2018 - Azul S.A., "Azul", (B3:AZUL4, NYSE:AZUL) the largest airline in Brazil by number of cities served, announces today its results for the first quarter of 2018 ("1Q18"). The following financial information, unless stated otherwise, is presented in Brazilian reais and in accordance with International Financial Reporting Standards (IFRS). Prior periods presented have been adjusted to reflect adoption of new IFRS accounting standards.

Financial and Operating Highlights for 1Q18

  • Operating income was R$275.9 million, representing a margin of 12.5% compared with R$209.2 million and a margin of 11.1% in 1Q17. This is a record first quarter operating result for Azul.
  • EBITDAR increased 20.8% to R$684.2 million, representing a margin of 30.9%.
  • Net income totaled R$210.5 million compared to R$58.4 million in 1Q17 representing an increase of R$152.2 million.
  • Passenger revenue per ASK (PRASK) increased 5.1% year over year or 12.5% stage-length adjusted.
  • Passenger traffic (RPKs) increased 13.4% over a capacity increase of 12.2% resulting in a higher load factor of 82.2% compared to a load factor of 81.4% in 1Q17.
  • Operating cost per ASK excluding fuel (CASK ex-fuel) increased 0.7% while total CASK increased 3.4% despite the 21% increase in oil prices (WTI) and the 3.2% depreciation of the Brazilian real year over year.
  • Financial expenses decreased 35.8% from R$139.3 million to R$89.4 million.
  • At the end of 1Q18 our total liquidity1 position totaled R$3.4 billion, representing 42.4% of the last twelve months’ revenues.

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