Azul Reports Net Income of R$137.7 Million in 1Q19

São Paulo, May 9th, 2019 - Azul S.A., "Azul" (B3:AZUL4, NYSE:AZUL), the largest airline in Brazil by number of flights and cities served, announces today its results for the first quarter of 2019 ("1Q19"). The following financial information, unless stated otherwise, is presented in Brazilian reais and in accordance with International Financial Reporting Standards (IFRS), including the recently adopted IFRS 16 standard.

Financial and Operating Highlights for 1Q19

  • Operating income was R$335.6 million in 1Q19, representing a margin of 13.2%, even with the 16.3% devaluation of the Brazilian real and the end of the 20% payroll tax relief program.
  • Net income totaled R$137.7 million compared to a net income of R$172.3 million in 1Q18.
  • RASK increased 1.8% in 1Q19 on a stage-length adjusted basis, while at the same time capacity increased 16.0%.
  • CASK increased 4.6% mostly due to the 16.3% depreciation of the Brazilian real and the end of the 20% payroll tax relief in 1Q19. CASK decreased 2.4% controlling for fuel, currency and the payroll tax.
  • At the end of 1Q19, our total liquidity position was R$4.0 billion, representing 42.4% of the last twelve months’ revenues.
  • Azul’s operating fleet totaled 125 aircraft at the end of the quarter, including 24 next-generation A320neo aircraft, which represented 34% of total capacity.
  • TudoAzul ended the quarter with more than 11 million members and recorded a 31% year-over-year increase in gross billings ex-Azul.
  • Azul Cargo recorded a 41% growth in revenue in 1Q19 compared to 1Q18.
  • Azul was elected one of the top 10 airlines in the world and received a record of six awards in the 2019 TripAdvisor Travelers’ Choice Awards, including Best Airline in Brazil, Best Airline in Latin America, Best Low Cost Airline in Latin America, Best Economy class in Latin America and Best Business Class in Latin America.

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