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AZUL's Q1 Earnings & Revenues Miss Expectations, Rise Y/Y
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Azul S.A. (AZUL - Free Report) incurred a loss (excluding 55 cents from non-recurring items) of 99 cents per share in the first quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 42 cents. Loss per share was $1.14 in the first quarter of 2022.
Total revenues of $862.1 million missed the Zacks Consensus Estimate of $930.9 million but increased 41.1% year over year as air-travel demand has improved. With more people taking to the skies, Azul’s passenger revenues, contributing 93.1% to the top line, jumped 46.7% year over year (on higher total capacity). Cargo and other revenues declined 11.9% year over year.
Consolidated traffic, measured in revenue passenger kilometers, increased 18% (up 4.1% in domestic and more than 100% on the international front) year over year. Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, increased 19.1% from the first quarter of 2022, with a 6% rise in domestic capacity and 120.7% rise in international capacity. Since the traffic surge was less than capacity expansion, the load factor (percentage of seats filled with passengers) fell 0.7 percentage points to 79.6%.
Azul’s total revenues per ASK rose 17.7% and passenger revenues per ASK increased 23.1% year over year. Results were driven by a strong domestic demand environment in Azul’s markets.
Cost per ASK (CASK) increased 8% from the first quarter of 2022 reported figure to 37.19cents, mainly due to a rise in jet fuel prices. Fuel cost per liter increased 23.6% from the first quarter of 2022. CASK excluding fuel, grew 1.7% to 21.69 cents due to the company’s cost reduction initiatives and productivitygains. Average fare jumped 31.6% from the first quarter of 2022 figure.
Liquidity
Azul exited the first quarter with total liquidity of R$5.21billion. Gross debt increased 7.7% year over year.
For 2023, AZUL anticipates capacity to increase by almost 14% from 2022.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decline in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Alaska Air Group, Inc. (ALK) reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
ALK’s operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% owing to continued recovery in air-travel demand.
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AZUL's Q1 Earnings & Revenues Miss Expectations, Rise Y/Y
Azul S.A. (AZUL - Free Report) incurred a loss (excluding 55 cents from non-recurring items) of 99 cents per share in the first quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 42 cents. Loss per share was $1.14 in the first quarter of 2022.
Total revenues of $862.1 million missed the Zacks Consensus Estimate of $930.9 million but increased 41.1% year over year as air-travel demand has improved. With more people taking to the skies, Azul’s passenger revenues, contributing 93.1% to the top line, jumped 46.7% year over year (on higher total capacity). Cargo and other revenues declined 11.9% year over year.
AZUL Price, Consensus and EPS Surprise
AZUL price-consensus-eps-surprise-chart | AZUL Quote
Operating Statistics
Consolidated traffic, measured in revenue passenger kilometers, increased 18% (up 4.1% in domestic and more than 100% on the international front) year over year. Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, increased 19.1% from the first quarter of 2022, with a 6% rise in domestic capacity and 120.7% rise in international capacity. Since the traffic surge was less than capacity expansion, the load factor (percentage of seats filled with passengers) fell 0.7 percentage points to 79.6%.
Azul’s total revenues per ASK rose 17.7% and passenger revenues per ASK increased 23.1% year over year. Results were driven by a strong domestic demand environment in Azul’s markets.
Cost per ASK (CASK) increased 8% from the first quarter of 2022 reported figure to 37.19cents, mainly due to a rise in jet fuel prices. Fuel cost per liter increased 23.6% from the first quarter of 2022. CASK excluding fuel, grew 1.7% to 21.69 cents due to the company’s cost reduction initiatives and productivitygains. Average fare jumped 31.6% from the first quarter of 2022 figure.
Liquidity
Azul exited the first quarter with total liquidity of R$5.21billion. Gross debt increased 7.7% year over year.
For 2023, AZUL anticipates capacity to increase by almost 14% from 2022.
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
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decline in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Alaska Air Group, Inc. (ALK) reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
ALK’s operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% owing to continued recovery in air-travel demand.