RIO DE JANEIRO, BRAZIL – Azul (AZUL4) is preparing to go shopping after the Covid-19 pandemic. According to a notice released on May 24, the airline states that “a consolidation movement is a post-pandemic industry trend and Azul is in a strong position to lead a process in this direction.”
The company also reports that it hired consultants at the end of the first quarter to “actively study industry consolidation opportunities.”
“Azul is emerging from this crisis in a leadership position in terms of liquidity, network recovery, and competitive advantages,” the company’s CEO John Rodgerson states in yesterday’s release.
In the same notice, the company announced the end of the sharing of flights (codeshare) with LATAM.
Outlook
Azul posted a net loss of R$2.8 billion in the first three months of the year, sharply reducing the loss over the previous quarter, although still showing a jump from the R$317 million negative result a year ago, with the airline still affected by the Covid-19 pandemic.
In early May, the company reported that it expects to close 2021 with immediate liquidity above R$3 billion, down from the R$4 billion with which it closed December 2020. Immediate liquidity involves cash and cash equivalents, short-term financial investments, and accounts receivable.
The airline’s total passenger traffic volume, measured in paid passenger-kilometers carried (RPKs), surged 523% in April compared to the same month in 2020, considered the peak of the Covid pandemic.
However, the performance was still 37.5% below the same period in 2019. Azul’s traffic in April retreated 9.1% compared to March.