Azul Airlines Updates Guidance for 2023 and 2024

Shares of Azul Airlines surged by 6.3% following the release of updated guidance for 2023 and 2024. The stock reached 16.36 reais, equivalent to $3.37, marking a substantial increase of 40% compared to the end of last year. In contrast, Brazil's benchmark Ibovespa stocks index only rose by 1.5% during mid-morning trading.

Azul Airlines has revised its guidance for revenue per available seat kilometer (RASK) in the fourth quarter of this year. Previously, the airline expected this figure to remain stable; however, it now anticipates an increase of 3% to 5% compared to the previous year.

Additionally, the airline has adjusted its Ebitda (earnings before interest, taxes, depreciation, and amortization) estimates. The Ebitda estimate for this year has been reduced to about BRL5.2 billion from BRL5.5 billion. On the other hand, the forecast for 2024 Ebitda has been raised to approximately $6.3 billion from less than BRL6.0 billion.

As for available seat kilometers, Azul Airlines has lowered its growth estimate for this year to 11% from 2022. This revision deviates from the earlier guidance, which predicted a growth rate of 14%.