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AZUL's Q2 Loss Wider-Than-Expected, Revenues Decrease Y/Y
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Azul S.A. (AZUL - Free Report) incurred a loss of $1.23 per share in the second quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 76 cents. Loss per share was 81 cents in the second quarter of 2023.
Total revenues of $800.7 million outpaced the Zacks Consensus Estimate of $791.4 million but declined year over year. The year-over-year downfall is owing to the impact of the Rio Grande do Sul floods in May and the temporary reduction in the company’s international capacity.
With more people taking to the skies, Azul’s passenger revenues, contributing 92.4% to the top line, fell 2.3% year over year (on 2.6% higher total capacity). Cargo and other revenues fell 2.2% year over year due to the reduction in the company’s domestic capacity in Rio Grande do Sul state, and the temporary decrease in international capacity.
Consolidated traffic, measured in revenue passenger kilometers, rose 3.9% (up 6.7% in domestic but down 5.5% on the international front) year over year. Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, increased 3.4% year over year, with a 6.5% rise in domestic capacity and an 8% decline in international capacity. Since traffic outpaced the capacity expansion, the load factor (percentage of seats filled with passengers) grew 0.4 percentage points to 80.3%.
Azul’s total revenues per ASK or RASK fell 5.4% year over year, while passenger revenues per ASK or PRASK decreased 5.4% year over year.
Cost per ASK (CASK) decreased 1.8% from the second quarter of 2023 reported figure. CASK, excluding fuel, fell 2.5% year over year.
Average fare fell 5.2% from second-quarter 2023 figure.
Operating expenses of R$3.7 billion rose 1.5% from second-quarter 2023. The uptick was owing to the 3.4% increase in total capacity, a 5.3% depreciation of the Brazilian real against the U.S. dollar and a 1.4% increase in fuel price, partially offset by higher productivity and cost-reduction initiatives.
Azul exited the second quarter with total liquidity of R$6.378 billion compared with R$5.989 billion at the first-quarter end. Gross debt increased to R$28.105 billion from R$24.384 billion at the prior-quarter end.
For 2024, Azul anticipates EBITDA to be around R$6 billion (prior view: R$6.5 billion). The updated EBITDA guidance marks an improvement of 66%, which is higher than the 2019 reported figure.
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’stotal operating revenues of $2.93 billionmissed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.
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AZUL's Q2 Loss Wider-Than-Expected, Revenues Decrease Y/Y
Azul S.A. (AZUL - Free Report) incurred a loss of $1.23 per share in the second quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 76 cents. Loss per share was 81 cents in the second quarter of 2023.
Total revenues of $800.7 million outpaced the Zacks Consensus Estimate of $791.4 million but declined year over year. The year-over-year downfall is owing to the impact of the Rio Grande do Sul floods in May and the temporary reduction in the company’s international capacity.
With more people taking to the skies, Azul’s passenger revenues, contributing 92.4% to the top line, fell 2.3% year over year (on 2.6% higher total capacity). Cargo and other revenues fell 2.2% year over year due to the reduction in the company’s domestic capacity in Rio Grande do Sul state, and the temporary decrease in international capacity.
AZUL Price, Consensus and EPS Surprise
AZUL price-consensus-eps-surprise-chart | AZUL Quote
Consolidated traffic, measured in revenue passenger kilometers, rose 3.9% (up 6.7% in domestic but down 5.5% on the international front) year over year. Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, increased 3.4% year over year, with a 6.5% rise in domestic capacity and an 8% decline in international capacity. Since traffic outpaced the capacity expansion, the load factor (percentage of seats filled with passengers) grew 0.4 percentage points to 80.3%.
Azul’s total revenues per ASK or RASK fell 5.4% year over year, while passenger revenues per ASK or PRASK decreased 5.4% year over year.
Cost per ASK (CASK) decreased 1.8% from the second quarter of 2023 reported figure. CASK, excluding fuel, fell 2.5% year over year.
Average fare fell 5.2% from second-quarter 2023 figure.
Operating expenses of R$3.7 billion rose 1.5% from second-quarter 2023. The uptick was owing to the 3.4% increase in total capacity, a 5.3% depreciation of the Brazilian real against the U.S. dollar and a 1.4% increase in fuel price, partially offset by higher productivity and cost-reduction initiatives.
Azul exited the second quarter with total liquidity of R$6.378 billion compared with R$5.989 billion at the first-quarter end. Gross debt increased to R$28.105 billion from R$24.384 billion at the prior-quarter end.
For 2024, Azul anticipates EBITDA to be around R$6 billion (prior view: R$6.5 billion). The updated EBITDA guidance marks an improvement of 66%, which is higher than the 2019 reported figure.
Currently, Azul carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’stotal operating revenues of $2.93 billionmissed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.The downfall was owing to a 5% decrease in gross revenue per load in Intermodal (JBI) and a decline in load volume of 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS). These were partially offset by the 5% revenue growth of Final Mile Services (FMS), primarily driven by new contracts implemented over the past year, and a 5% increase in revenue per load in ICS.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air-travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.