Azul's August Shows Real Operating Strength Amid Court-Supervised Overhaul

(MENAFN- The Rio Times) Azul Linhas Aéreas is in Chapter 11 in the United States, but its August numbers tell a clearer story: the airline is still flying, still selling tickets, and still turning solid operating profits.

For August, Azul reported net revenue of R$ 1.89 billion ($357 million). Adjusted EBITDA reached R$ 664.9 million ($125 million), a 35.2% margin. Adjusted operating income was R$ 425.6 million ($80 million), a 22.5% margin.

Liquidity to keep the operation steady remained in place: cash and short-term investments ended the month at R$ 1.67 billion ($315 million), and accounts receivable stood at R$ 2.26 billion ($426 million).

Look one month earlier for context. July was stronger on volume-R$ 2.02 billion ($381 million) in revenue-with adjusted EBITDA of R$ 708.9 million ($134 million) at the same 35.2% margin, and adjusted operating income of R$ 467.9 million ($88 million).

Period-end cash in July was R$ 2.32 billion ($438 million), with receivables at R$ 1.92 billion ($362 million). The dip from July to August suggests seasonality and network shifts, but margin stability matters: the core business is still producing cash-like earnings while under court protection.



Step back further. In the second quarter, Azul posted net income of R$ 1.29 billion ($243 million) versus a large loss a year earlier, though on an adjusted basis it still reported a net loss-reminding investors the turnaround is not just about one quarter.

Quarterly revenue was around R$ 4.9 billion ($925 million), supported by international demand, ancillary sales, and cargo. The story behind the story is discipline.

Azul is using the court process to fix the balance sheet-renegotiating obligations-while trying to keep day-to-day performance steady. That balance is hard for any airline, especially with currency and fuel volatility.

What to watch next is simple: the monthly cadence of revenue, EBITDA , cash, and receivables. If those stay resilient, Azul will have the operating backbone to exit Chapter 11 with a cleaner balance sheet and a cost base that can compete once the legal process ends.

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