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• Revenue: Record revenue of 5.5 billion reais, up 10% year over year.

• EBITDA: Record quarterly EBITDA of 2 billion reais with a margin of 35.2%.

• EBIT: EBIT of 1.2 billion reais.

• RASC: Strong RASC of BRL0.45 cents.

• Capacity Growth: Capacity growth of 11% year over year.

• Fuel Prices: Fuel prices dropped 17% year over year.

• High-Margin Business Units: Contribution to RASC grew from 15% in 4Q23 to 23% in 4Q24.

• Loyalty Program: Over 18 million members, with a 27% increase in gross billings ex-airline year over year.

• Co-branded Credit Card: Total spending represents 0.5% of Brazil's GDP.

• Vacations Business: 63% growth in gross billings in 2024.

• Logistics Business: 9% increase in international revenue for the full year and 54% growth quarter over quarter.

• CASK: Overall CASK down 6.5% year over year; CASK ex-fuel remained flat.

• Aircraft Utilization: Increased by almost 13% year over year.

• Productivity: 10% more productive in terms of ASKs per FTE compared to last year.

• Debt Reduction: Almost BRL8.5 billion in debt extinguished.

• Capital Structure: $500 million of new capital raised.

• Share Count: Total share count on equivalent preferred basis will be 2.3 billion shares.

• Warning! GuruFocus has detected 5 Warning Signs with AZUL.

Release Date: February 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Azul SA (NYSE:AZUL) reported record revenue, EBITDA, and EBIT for the fourth quarter, with revenue up 10% year over year to 5.5 billion reais.

• The company achieved a record quarterly EBITDA of 2 billion reais, with a margin of 35.2%, highlighting its strong profitability.

• Azul SA (NYSE:AZUL) has a unique network advantage, being the only carrier on 82% of its routes, which strengthens its market position.

• The company's loyalty program and co-branded credit card have shown significant growth, contributing to revenue diversification.

• Azul SA (NYSE:AZUL) successfully completed a comprehensive capital restructuring, reducing debt by over 6.3 billion reais and improving its capital structure.

Negative Points

• Azul SA (NYSE:AZUL) faced significant challenges in 2024, including OEM supply chain issues and engine challenges, impacting operations and finances.

• The company was affected by a devaluation of the local currency and extreme weather events, which disrupted operations and financial performance.

• Despite improvements, the company still faces headwinds from currency fluctuations, which could impact free cash flow.

• Azul SA (NYSE:AZUL) has a significant amount of debt, and while restructuring has improved the situation, it remains a concern.

• The company is reliant on successful execution of its strategic plans, including fleet transformation and cost management, to maintain profitability.