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Azul Q3 Loss Wider Than Expected, Revenues Surpass Estimates
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Azul S.A. (AZUL - Free Report) incurred a loss of 64 cents per share in the third quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 38 cents. Loss per share was 72 cents in the third quarter of 2022.
Total revenues of $1,007 million surpassed the Zacks Consensus Estimate of $995 million and increased year over year due to an improvement in air-travel demand. With more people taking to the skies, Azul’s passenger revenues, contributing 93.1% to the top line, increased 12.4% year over year (on higher total capacity). Cargo and other revenues grew 11.5% year over year.
Consolidated traffic, measured in revenue passenger kilometers (RPKs), rose 12% (up 4.2% in domestic and 45.8% on the international front) year over year. Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, increased 11.5% from the year-ago quarter, with a 4.2% rise in domestic capacity and a 46.2% increase in international capacity. Since traffic surge outpaced the amount of capacity expansion, the load factor (percentage of seats filled with passengers) grew 0.4 percentage points to 82.2%.
Azul’s total revenues per ASK or RASK rose 0.7% and passenger revenues per ASK or PRASK increased 0.8% year over year.
Cost per ASK (CASK) decreased 10.7% from the second quarter of 2022 reported figure to 34.27cents. Fuel cost per liter decreased 33% from third-quarter 2022. CASK, excluding fuel, grew 12% to 22.43 cents due to the company’s cost reduction initiatives and productivitygains.
Average fare increased 5.3% from the third quarter of 2022.
Liquidity
Azul exited the third quarter with total liquidity of R$6.7billion. Gross debt increased 8% year over year.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) third-quarter 2023 earnings per share (EPS) of $1.80 missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.
Delta Air Lines, Inc. (DAL - Free Report) reported third-quarter 2023 EPS (excluding 31 cents from nonrecurring items) of $2.03, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
DAL’s revenues of $15,488 million beat the Zacks Consensus Estimate of $15,290.4 million and increased 11% on a year-over-year basis, driven by higher air-travel demand.
Alaska Air Group, Inc. (ALK - Free Report) reported third-quarter 2023 EPS of $1.83, which missed the Zacks Consensus Estimate of $1.88 and declined 28% year over year.
Operating revenues of $2,839 million missed the Zacks Consensus Estimate of $2,876.1 million. The top line jumped 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1% owing to continued recovery in air-travel demand.
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Azul Q3 Loss Wider Than Expected, Revenues Surpass Estimates
Azul S.A. (AZUL - Free Report) incurred a loss of 64 cents per share in the third quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 38 cents. Loss per share was 72 cents in the third quarter of 2022.
Total revenues of $1,007 million surpassed the Zacks Consensus Estimate of $995 million and increased year over year due to an improvement in air-travel demand. With more people taking to the skies, Azul’s passenger revenues, contributing 93.1% to the top line, increased 12.4% year over year (on higher total capacity). Cargo and other revenues grew 11.5% 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 (RPKs), rose 12% (up 4.2% in domestic and 45.8% on the international front) year over year. Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, increased 11.5% from the year-ago quarter, with a 4.2% rise in domestic capacity and a 46.2% increase in international capacity. Since traffic surge outpaced the amount of capacity expansion, the load factor (percentage of seats filled with passengers) grew 0.4 percentage points to 82.2%.
Azul’s total revenues per ASK or RASK rose 0.7% and passenger revenues per ASK or PRASK increased 0.8% year over year.
Cost per ASK (CASK) decreased 10.7% from the second quarter of 2022 reported figure to 34.27cents. Fuel cost per liter decreased 33% from third-quarter 2022. CASK, excluding fuel, grew 12% to 22.43 cents due to the company’s cost reduction initiatives and productivitygains.
Average fare increased 5.3% from the third quarter of 2022.
Liquidity
Azul exited the third quarter with total liquidity of R$6.7billion. Gross debt increased 8% year over year.
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) third-quarter 2023 earnings per share (EPS) of $1.80 missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.
Delta Air Lines, Inc. (DAL - Free Report) reported third-quarter 2023 EPS (excluding 31 cents from nonrecurring items) of $2.03, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
DAL’s revenues of $15,488 million beat the Zacks Consensus Estimate of $15,290.4 million and increased 11% on a year-over-year basis, driven by higher air-travel demand.
Alaska Air Group, Inc. (ALK - Free Report) reported third-quarter 2023 EPS of $1.83, which missed the Zacks Consensus Estimate of $1.88 and declined 28% year over year.
Operating revenues of $2,839 million missed the Zacks Consensus Estimate of $2,876.1 million. The top line jumped 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1% owing to continued recovery in air-travel demand.