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Nov 16 (Reuters) – Brazilian airline Azul SA AZUL.N on Monday reported a third-quarter lack of 1.2 billion reais ($220 million) however signaled a faster-than-expected restoration in air journey demand, forecasting it is going to be working 80% of its regular flights by year-end.
Income doubled versus the second quarter to 805 million reais, though was nonetheless 70% decrease than a yr earlier as a result of coronavirus pandemic.
Azul’s steerage is essentially the most optimistic on Brazilian home journey restoration but. Its rival Gol Linhas Aereas Inteligentes has forecast a 70% restoration by subsequent yr. Nonetheless, each forecasts are extra bullish than what U.S. airways have seen to this point.
Executives mentioned that Azul leisure vacationers had been already paying fares that had been inside 10% of pre-pandemic costs, though enterprise journey has not seen a significant restoration.
Azul is concentrated on connecting Brazil’s smaller cities, most frequently specializing in routes the place it may well have a monopoly that offers it pricing energy. Executives mentioned that they had seen the strongest restoration in Brazil’s northeast area, and that Sao Paulo’s business-focused Congonhas airport was lagging in restoration.
However whereas home journey could also be recovering sooner than anticipated, the identical doesn’t apply to worldwide flights. Azul mentioned the one worldwide route it hopes to renew within the short-term is to Orlando, if america had been to raise its journey ban on Brazil.
($1 = 5.4575 reais)
(Reporting by Marcelo Rochabrun; modifying by Jason Neely and Marguerita Choy)
((marcelo.rochabrun@thomsonreuters.com; +55 11 5644 7768;))
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