INSUBCONTINENT EXCLUSIVE:
burn, which has heightened liquidity risks
Despite generating R$1.2 billion in EBIT during the first half of 2024, Azul faced financial headwinds.High working capital needs, debt
burdens, and capital expenditures led to a matching R$1.2 billion cash burn
billion by June 2024.The airline now faces a daunting R$5.9 billion in short-term financial and leasing obligations
This precarious situation necessitates urgent action.Azul Weighs Merger and Bankruptcy Options Amid Debt Crisis
position in Brazil offers a silver lining
The airline operates as the sole carrier on about 80% of its routes
This exclusivity results in reduced competition and strong pricing power.However, Azul remains vulnerable to fuel price fluctuations and
foreign currency volatility
headwinds, its ability to increase liquidity and refinance obligations will be crucial
