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AZUL Posts Wider-Than-Expected Q4 Loss, Revenues Beat Mark
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Azul (AZUL - Free Report) incurred a loss (excluding 69 cents from non-recurring items) of 58 cents per share in the fourth quarter of 2021, wider than the Zacks Consensus Estimate of a loss of 53 cents. The amount of loss narrowed year over year.
Total revenues of $668.4 million outperformed the Zacks Consensus Estimate of $628.7 million and increased more than 100% year over year as air-travel demand improved, courtesy of widespread vaccination programs in Brazil.
With more people taking to the skies, Azul’s passenger revenues, contributing 91% to the top line, surged more than 100% year over year. Cargo and other revenues rose 30.8% year over year, primarily owing to upbeat demand for Azul’s logistics solutions.
Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, surged 46.5% from the same period last year with a 48.6% rise in international capacity. The same expanded 46.3% on the domestic front. Since traffic surge was less than the amount of capacity expansion, load factor (percentage of seats filled with passengers) rose 1.5 percentage points to 82.2%.
While Azul’s total revenues per ASK or RASK inched up 42.7%, passenger revenues per ASK or PRASK increased 51.7% year over year. Cost per ASK (CASK) increased 13.5% from the fourth-quarter 2020 reported figure. Jet fuel prices increased 51.4% from the fourth quarter of 2019, with oil prices moving north. CASK excluding fuel dropped 5.9%. Average fare surged 13% from fourth-quarter 2019’s figure.
Azul exited the fourth quarter with a total passenger operating fleet of 161 aircraft. The average age of the fleet was 6.6 years. The contractual fleet size was 179.
Liquidity
Azul, carrying a Zacks Rank #3 (Hold), exited the December quarter with total liquidity of R$4.1 billion. Gross debt increased 4.4% sequentially.
J.B. Hunt Transport Services, sporting a Zacks Rank #1 (Strong Buy), reported earnings of $2.28 per share in fourth-quarter 2021. The figure surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all the segments. You can seethe complete list of today’s Zacks #1 Rank stocks here.
J.B. Hunt’s operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line increased 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.
United Airlines, carrying a Zacks Rank #3, incurred a loss (excluding 39 cents from non-recurring items) of $1.60 per share in fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $2.23. The amount of loss narrowed 77.1% year over year.
United Airlines’ operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. The top line surged more than 100% year over year, with passenger revenues contributing 84% to the top line and surging 185.4% to $6,878 million.
Delta, carrying a Zacks Rank #3, reported earnings (excluding 86 cents from non-recurring items) of 22 cents per share in fourth-quarter 2021, outpacing the Zacks Consensus Estimate of 15 cents. The bottom line improved from the year-ago quarter’s loss of $2.53 per share. Strong holiday travel demand and favorable pricing aided the December quarter’s results.
Delta’s revenues came in at $9,470 million, beating the Zacks Consensus Estimate of $9,232.1 million and soaring more than 100% year over year. The upside can be attributed to people resorting to air travel during the holidays.
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AZUL Posts Wider-Than-Expected Q4 Loss, Revenues Beat Mark
Azul (AZUL - Free Report) incurred a loss (excluding 69 cents from non-recurring items) of 58 cents per share in the fourth quarter of 2021, wider than the Zacks Consensus Estimate of a loss of 53 cents. The amount of loss narrowed year over year.
Total revenues of $668.4 million outperformed the Zacks Consensus Estimate of $628.7 million and increased more than 100% year over year as air-travel demand improved, courtesy of widespread vaccination programs in Brazil.
With more people taking to the skies, Azul’s passenger revenues, contributing 91% to the top line, surged more than 100% year over year. Cargo and other revenues rose 30.8% year over year, primarily owing to upbeat demand for Azul’s logistics solutions.
AZUL Price, Consensus and EPS Surprise
AZUL price-consensus-eps-surprise-chart | AZUL Quote
Operating Statistics
Consolidated traffic, measured in revenue passenger kilometers (RPKs), surged 49.2% (up 46.9% domestic & 83.1% international) year-over-year.
Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, surged 46.5% from the same period last year with a 48.6% rise in international capacity. The same expanded 46.3% on the domestic front. Since traffic surge was less than the amount of capacity expansion, load factor (percentage of seats filled with passengers) rose 1.5 percentage points to 82.2%.
While Azul’s total revenues per ASK or RASK inched up 42.7%, passenger revenues per ASK or PRASK increased 51.7% year over year. Cost per ASK (CASK) increased 13.5% from the fourth-quarter 2020 reported figure. Jet fuel prices increased 51.4% from the fourth quarter of 2019, with oil prices moving north. CASK excluding fuel dropped 5.9%. Average fare surged 13% from fourth-quarter 2019’s figure.
Azul exited the fourth quarter with a total passenger operating fleet of 161 aircraft. The average age of the fleet was 6.6 years. The contractual fleet size was 179.
Liquidity
Azul, carrying a Zacks Rank #3 (Hold), exited the December quarter with total liquidity of R$4.1 billion. Gross debt increased 4.4% sequentially.
Sectorial Snapshot
Within the broader Transportation sector J.B. Hunt Transport Services (JBHT - Free Report) , United Airlines (UAL - Free Report) and Delta Air Lines (DAL - Free Report) reported fourth-quarter 2021 results last month.
J.B. Hunt Transport Services, sporting a Zacks Rank #1 (Strong Buy), reported earnings of $2.28 per share in fourth-quarter 2021. The figure surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all the segments. You can see the complete list of today’s Zacks #1 Rank stocks here.
J.B. Hunt’s operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line increased 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.
United Airlines, carrying a Zacks Rank #3, incurred a loss (excluding 39 cents from non-recurring items) of $1.60 per share in fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $2.23. The amount of loss narrowed 77.1% year over year.
United Airlines’ operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. The top line surged more than 100% year over year, with passenger revenues contributing 84% to the top line and surging 185.4% to $6,878 million.
Delta, carrying a Zacks Rank #3, reported earnings (excluding 86 cents from non-recurring items) of 22 cents per share in fourth-quarter 2021, outpacing the Zacks Consensus Estimate of 15 cents. The bottom line improved from the year-ago quarter’s loss of $2.53 per share. Strong holiday travel demand and favorable pricing aided the December quarter’s results.
Delta’s revenues came in at $9,470 million, beating the Zacks Consensus Estimate of $9,232.1 million and soaring more than 100% year over year. The upside can be attributed to people resorting to air travel during the holidays.