Azul S.A. (AZUL) reported fourth-quarter 2024 earnings of 9 cents per share, which lagged the Zacks Consensus Estimate of 12 cents. The bottom line, however, improved more than 100% on a year-over-year basis.

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Total revenues of $948.9 million lagged the Zacks Consensus Estimate of $957.6 million. AZUL’s fourth-quarter 2024 revenues benefit from a healthy demand environment, robust ancillary revenues and the outstanding performance of its business units.

With more people taking to the skies, Azul’s passenger revenues, contributing 92.7% to the top line, grew 10% year over year. Cargo revenue and other grew 9.9% year over year owing to the better performance and the partial recovery of AZUL’s international operation.

Other Q4 Details

Consolidated traffic, measured in revenue passenger kilometers (RPKs), rose 16.9% (up 20.2% domestic and 5.9% on the international front) year over year. Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, increased 11% from the year-ago quarter, with a 13.3% rise in domestic capacity and a 3.1% surge in international capacity. Since traffic outpaced the capacity expansion, the load factor (percentage of seats filled with passengers) grew 4.2 percentage points to 84.2%.

Azul’s total revenues per ASK or RASK were R$44.98 cents, down 0.7% year over year. Passenger revenues per ASK or PRASK decreased 0.7% year over year. 

Fuel cost per liter fell 17% year over year.

Cost per ASK (CASK) fell 6.5% from the fourth quarter of 2023 reported figure. The downside was owing to the 17% reduction in fuel prices, cost reduction initiatives and productivity, and the inclusion of higher number of next-generation aircraft in AZUL’s fleet. These were, however, partially offset by the 17.8% average depreciation of the Brazilian real against the US dollar and 4.8% inflation over the last 12 months.

CASK, excluding fuel, grew 0.7% year over year. Average fare fell 2.1% from fourth-quarter 2023 figure.

Operating expenses of R$4.31 billion grew 3.8% year over year owing to the 11% increase in total capacity and the 17.8% depreciation of the Brazilian real against the US dollar. These were offset by 17% reduction in fuel price, higher productivity and cost-reduction initiatives.

Azul exited the fourth quarter with total liquidity of R$7.49 billion compared with R$6.27 billion at the end of prior quarter. Gross debt decreased to R$33.6 billion from R$27.9 billion at the end of prior quarter.

AZUL’s Guidance

For 2025, AZUL reaffirms its EBITDA guidance to be R$7.4 billion.

AZUL’s Zacks Rank

Currently, AZUL carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q4 Performances of Other Transportation Companies

Delta Air Lines DAL reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs.

DAL’s revenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.44 billion, up 5.7% year over year. Passenger revenues, which accounted for 82.4% of total revenues, increased 5% year over year at $12.82 billion.

J.B. Hunt Transport Services (JBHT) reported fourth-quarter 2024 earnings per share of $1.53, which fell short of the Zacks Consensus Estimate of $1.62. However, the bottom line increased 4.1% on a year-over-year basis.  

JBHT’s total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment.

JBHT’s fourth-quarter 2024 operating revenues of $2.78 billion, excluding fuel surcharge revenue, decreased 2% from the year-ago reported quarter. Total operating income for the reported quarter increased 2% year over year to $207 million.

Alaska Air Group, Inc. (ALK) reported solid fourth-quarter 2024results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and improved more than 100% on a year-over-year basis. The reported figure exceeded the guided range of 40-50 cents.

ALK’s bottom line benefitted from solid revenue growth, cost and operational performance throughout the quarter and holiday travel periods. ALK also benefitted from a renegotiation of certain interest payments and favorability in its fourth-quarter tax rate.

ALK’s operating revenues of $3.53 billion beat the Zacks Consensus Estimate of $3.51 billion. The top line jumped 38.4% year over year, with passenger revenues accounting for 89.9% of the top line and increasing 37% owing to continued recovery in air-travel demand.

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