August 9, 2018
Brazilian airline Azul SA posted a second quarter net profit of 238 million reais ($63.10 million), after posting net losses in the same period in the past two years.
The results were positive despite the higher cost of oil in the international market and a truckers’ strike in Brazil that paralyzed the transportation of goods throughout the country in May. The airline put the losses attributed to the strike at 51 million reais.
The company booked a 1300-percent increase in revenue in a category called “Result from related party transactions, net” but did not immediately explain what it was. Revenue in that category was 123 million reais, compared to 9 million last year.
Azul also saw a 17-percent increase in passenger traffic.
Azul’s profits were 13 percent higher than in the first quarter, despite a regional trend where second quarter results tend to be the weakest of the year.
The cost of fuel increased 35 percent compared to last year, but it did not eat a significantly higher percentage of the airline’s overall revenue as it has with other competitors such as Copa Holdings SA and Gol Linhas Aereas Inteligentes SA..
As a percentage of the airline’s 2.1 billion reais in revenue, fuel was 27 percent compared to 24 percent last year.