Brazil's Azul posts $220 million loss but signals travel demand recovery

(Reuters) - Brazilian airline Azul SA on Monday reported a third-quarter loss of 1.2 billion reais ($220 million) but signaled a faster-than-expected recovery in air travel demand, forecasting it will be operating 80% of its normal flights by year-end. Revenue doubled versus the second quarter to 805 million reais, although was still 70% lower than a year earlier due to the coronavirus pandemic. Azul's guidance is the most optimistic on Brazilian domestic travel recovery yet

Reuters November 17, 2020 01:05:51 IST
Brazil's Azul posts $220 million loss but signals travel demand recovery

Brazils Azul posts 220 million loss but signals travel demand recovery

(Reuters) - Brazilian airline Azul SA on Monday reported a third-quarter loss of 1.2 billion reais ($220 million) but signaled a faster-than-expected recovery in air travel demand, forecasting it will be operating 80% of its normal flights by year-end.

Revenue doubled versus the second quarter to 805 million reais, although was still 70% lower than a year earlier due to the coronavirus pandemic.

Azul's guidance is the most optimistic on Brazilian domestic travel recovery yet. Its rival Gol Linhas Aereas Inteligentes has forecast a 70% recovery by next year. Still, both forecasts are more bullish than what U.S. airlines have seen so far.

Executives said that Azul leisure travelers were already paying fares that were within 10% of pre-pandemic prices, although business travel has not seen a meaningful recovery.

Azul is focused on connecting Brazil's smaller cities, most often focusing on routes where it can have a monopoly that gives it pricing power. Executives said they had seen the strongest recovery in Brazil's northeast region, and that Sao Paulo's business-focused Congonhas airport was lagging in recovery.

But while domestic travel may be recovering faster than expected, the same does not apply to international flights. Azul said the only international route it hopes to resume in the short-term is to Orlando, if the United States were to lift its travel ban on Brazil.

(Reporting by Marcelo Rochabrun; editing by Jason Neely and Marguerita Choy)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.