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AZUL Incurs Q4 Loss, Misses on Revenues, Tweaks '24 View
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Azul S.A. (AZUL - Free Report) incurred a loss of 47 cents per share in the fourth quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 22 cents. Loss per share was 83 cents in the fourth quarter of 2022.
Total revenues of $1,015.6 million lagged the Zacks Consensus Estimate of $1,016.8 million but increased year over year. The year-over-year improvement is due to the robust growth in passenger revenues and a solid contribution from other businesses, especially the continued growth in domestic cargo revenues and AZUL’s vacation business, Azul Viagens.
With more people taking to the skies, Azul’s passenger revenues, contributing 92.7% to the top line, increased 13.2% year over year (on higher total capacity). Cargo and other revenues grew 9.5% year over year.
Consolidated traffic, measured in revenue passenger kilometers (RPKs), rose 9.1% (up 4.4% in domestic and 28.2% on the international front) year over year. Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, increased 6.5% from the same-period level last year, with a 2.5% rise in domestic capacity and a 23.9% rise in international capacity. Since traffic surge outpaced the amount of capacity expansion, load factor (percentage of seats filled with passengers) grew 1.9 percentage points to 80%.
Azul’s total revenues per ASK or RASK rose 6.1% and passenger revenues per ASK or PRASK increased 6.3% year over year.
Cost per ASK (CASK) decreased 0.9% from the fourth quarter of 2022 reported figure to 37.35cents. Fuel cost per liter decreased 17.3% from fourth-quarter 2022. CASK, excluding fuel, grew 14.7% to 23.72 cents.
Average fare rose 9.3% from the fourth quarter of 2022 figure.
Liquidity
Azul exited the fourth quarter with total liquidity of R$6.11billion. Gross debt increased 6.3% year over year.
2024 Guidance
For 2024, Azul anticipates to increase capacity by almost 11% on a year-over-year basis. The upside can be attributed to the continued solid demand environment and the ongoing implementation of AZUL’s fleet transformation strategy.
Further, Azul estimates 2024 EBITDA to be around R$6.5 billion, higher than the previous guidance of R$6.3 billion. The updated projection is due to the robust demand environment in both domestic and international markets and the positive trend in fuel prices, together with the expected capacity growth and a higher number of fuel-efficient aircraft entering the fleet.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 earnings of $1.47 per share missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
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AZUL Incurs Q4 Loss, Misses on Revenues, Tweaks '24 View
Azul S.A. (AZUL - Free Report) incurred a loss of 47 cents per share in the fourth quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 22 cents. Loss per share was 83 cents in the fourth quarter of 2022.
Total revenues of $1,015.6 million lagged the Zacks Consensus Estimate of $1,016.8 million but increased year over year. The year-over-year improvement is due to the robust growth in passenger revenues and a solid contribution from other businesses, especially the continued growth in domestic cargo revenues and AZUL’s vacation business, Azul Viagens.
With more people taking to the skies, Azul’s passenger revenues, contributing 92.7% to the top line, increased 13.2% year over year (on higher total capacity). Cargo and other revenues grew 9.5% 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 9.1% (up 4.4% in domestic and 28.2% on the international front) year over year. Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, increased 6.5% from the same-period level last year, with a 2.5% rise in domestic capacity and a 23.9% rise in international capacity. Since traffic surge outpaced the amount of capacity expansion, load factor (percentage of seats filled with passengers) grew 1.9 percentage points to 80%.
Azul’s total revenues per ASK or RASK rose 6.1% and passenger revenues per ASK or PRASK increased 6.3% year over year.
Cost per ASK (CASK) decreased 0.9% from the fourth quarter of 2022 reported figure to 37.35cents. Fuel cost per liter decreased 17.3% from fourth-quarter 2022. CASK, excluding fuel, grew 14.7% to 23.72 cents.
Average fare rose 9.3% from the fourth quarter of 2022 figure.
Liquidity
Azul exited the fourth quarter with total liquidity of R$6.11billion. Gross debt increased 6.3% year over year.
2024 Guidance
For 2024, Azul anticipates to increase capacity by almost 11% on a year-over-year basis. The upside can be attributed to the continued solid demand environment and the ongoing implementation of AZUL’s fleet transformation strategy.
Further, Azul estimates 2024 EBITDA to be around R$6.5 billion, higher than the previous guidance of R$6.3 billion. The updated projection is due to the robust demand environment in both domestic and international markets and the positive trend in fuel prices, together with the expected capacity growth and a higher number of fuel-efficient aircraft entering the fleet.
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) fourth-quarter 2023 earnings of $1.47 per share missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 earnings per share (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.