Azul SA

Analysis

Business Description

Azul SA (Azul) is a provider of airline services. As of December 31, 2019, the company recorded 916 daily departures serving 116 destinations and an unparalleled network of 249 non-stop routes. It has operations in 73 Brazilian cities in both departures and carried 28 million passengers in FY2019. As of December 31, 2019, the company had 164 contractual fleets comprising Embraer aircraft E-190, E-195, and E-195-E2; ATR aircraft ATR 72 and ATR 42; Airbus aircraft A320neo, A321neo, A330ceo and A330neo; and Boeing 737 Freighter. As of December 31, 2019, the company had 74 no. of Embraer Aircraft; 39 ATR Aircraft; 51 Airbus Aircraft; and two Boeing 737 Freighter.

The company operates software products from various vendors, including Oracle, Trax, Sabre, Navitaire, Amadeus, Comarch, Lufthansa, Sita, Jeppesen, and SmartKargo. The company has 92 trademarks with Instituto Nacional da Propriedade Industrial (INPI), which includes Tudo Azul, Azul Linhas Aereas Brasileiras, Azul Flex, Azul Promo, Azul Viagens, Voe Azul, and Azul Cargo Express. As of December 31, 2019, the company had code sharing agreement with United, JetBlue, Turkish Airlines, TAP, Copa Airlines, Ethiopian Airlines, Alitalia, Avianca Colombia and Beijing Capital. The company has 27 interline agreements with various international airlines to handle passengers traveling on itineraries.

The company operates through two reportable business segments: Passenger, and Cargo and Other.

Business Segments
Performance

Reported revenue of BRL534.4 million for FY2019, which grew 38.1% YoY, and reported a negative CAGR of 27.2% during 2017-19.

-Accounted for 4.7% of the company's revenue in FY2019.

Inventore veritatis
Key Stats

In FY2019,carried 28 million passengers.

Performance

Reported revenue of BRL10,907.9 million for FY2019, which grew 25.8% YoY, and reported a CAGR of 27.6% during 2017-19.

-Accounted for 95.3% of the company's revenue in FY2019.

-Growth in revenue was due to 23.9% increase in Revenue Passenger Kilometers (RPK) and 3.0% increase in PRASK.