Azul (AZUL) 9 May 222022 Q1 Earnings call transcript

Hello, everyone, and welcome to Azul's First Quarter 2022 Results Conference Call. My name is Hannon, and I'll be your operator for today. This event has been recorded and all participants will be in a listen-only mode until we conduct a question-and-answer session following the Company's presentation. [Operator Instructions] I would like to turn the presentation over to Thais Haberli, Investor Relations Manager. Please, proceed.

welcome Azul's and call. quarter Hannon, you, all first to earnings Thank available website. results morning, slides and are this we that our audio reference The announced call, the that of this we on IR the and Presenting today Neeleman, CEO. David will John and Azul's Rodgerson, Founder be Chairman; CFO; Shah, Alex here Revenue also our Officer Malfitani, our the Q&A Chief are for session. and Abhi

believes regarding discussed statements will be Before considered discussed Company turn to the the forward-looking facts, our measures, forward-looking regarding to Also, caution are I turn risks during you objectives the historical not plans, subject the in future statements. discuss that on and which not of over call should Any SEC Company's over uncertainties range today matters that in and to call, particularly the constitute the I are non-IFRS file. of reasonable, course assumptions are comments that, will David, call performance David? are we I'd like performance but our are in to a details CVM that statements. expected based With isolation. These David. and

Thanks earnings quarter call. joining everyone thanks for XXXX our and Thais. us Welcome first for

industry. would passion care to gratitude expressing start to to recognize customers with to and our provide experience our As by the each travel I in always, in continue like membership and crew my take other best the

next customer once we were ranking. again elected according the satisfaction example to in For airline best Brazil

operation. reported I and Brazil, Azul Cirium addition, the flying on-time in spent fantastic world. had In as week the a we most last carrier mainline Azul the in in

the the highest past currently seeing are two satisfaction customer seeing We scores we are in years. --

of before in commercial diversified we Slide on continue in and to Brazil. -- like XXX connect serve service impressive more XXX destinations network fleet, XXXX, and than see XX addition there compared unique me to XXXX. Brazil our destinations cities to can Excuse you through and reaching X, As never was

demand lot a supporting the growth we these for see, new Over can time, other you more our saw and trajectory. future. considerable in this to as So, to add network add will our destinations

is One of the competitive of network. of advantages its breadth Azul

may continues concerned Brazil a we and unique of have be never about some growth sustainability during and lot Azul that that are is environment. been a has ingredients the pandemic, the stronger to brings growth. While market, our enable lost of to I know the revenue time you the belief

world, it and producers commodity but these me a Let prices. things. prices. enormous Brazil, Brazil regions high economy, that of we commodity serve. have a ore these future, in and where iron Serving and oil only of the demand producer commodities meet is key remind critical you is world social not many of presence is Azul the record to Brazil an are to big for significant also areas has breadbasket all economic and and other the our and XXX rapidly to of is destinations development record expanding the many

each Azul. deliver or life-saving the is around business representing the fact, we or connecting other airlines, organs, all want the good country. XXXX have volunteers as for Azul personally doing to best of fact crew the members that registered we thank I of almost one our them contributions medicine, Brazil, to of our proud whether especially network no it are We vaccines, via like social Brazil where of in

As or to our I've are network. not fleet previously, limited our advantages said competitive

our Cargo, margins. leveraging contributors to Viagens Azul TudoAzul, and further expand network well, are our units, business and Our operation key Azul as

the almost XXXX, million with on revenues XXX Slide logistics can business quarter in you quarter. Cargo performance. outstanding continues see, to X, the first our its revenue compared reaching As triple of

in this logistics these commodity us rising with remains prices more which Our even in gives Brazil mission focus, advantages to transform our business.

fleet our have of to favorite we we the As with end-o-end and Viagens. talk Azul offer. X, projects Brazil do the well all again utilize one again business, believe platform we I can Brazil, beauty every to logistics see dedicated network do want of natural our Azul with so leisure in vacations we my demand, about our to On logistics Viagens to that, amazing we business be aircraft, used exciting want the of scheduled part combined business. has capabilities, strong for with our together Slide very can of very

business, in sales, double team more details and on when our now are over I With give I Azul more give taking that, compared pass have just seriously, bookings over to XXXX. XXX domestic to more XXXX. this growing than To the more will increasing told and to in over Viagens over business words We XX% first margins dedicated to is you you operating are compared me an how July, than this with we seeing Abhi for I'll results. record say so. John July, you and within idea quarter flights again, his record

the unavailable a short-term David appreciate Thanks, your Omicron, during its which almost hard of our We also from all one operational to time. crew our I challenges work we want quarter. their of started thank to past in during for year the humility. members fly really and peak crew third period for with members resulted the

recover. sharply February to a January adjust result, had our to operation and As we in

March, was behind us. the clearly of As wave

results pre-pandemic of environment Slide with which forward. we allowed this as of all even of Slide we the the see while an still strategy, of more recovered March strong prices. to million increase to said compared new you EBITDA and This than Azul's a an This out you seeing XX% certainly indication described, demand XX.X% first quarter. domestic up true. more help first pent This destinations our country net exclude new bringing to year with after mentioned levels, not new almost be markets, X. have schedules to If it XXXX. and to carnival. really sustain is up the which of to X XX% want it's offset same to above XXXX revenue quarter record confident X, network, representing of -time how fuel we demand rising above markets expansion levels. As to David consecutive with just us connections fares why of of these XX% you already challenges, the greater volumes finding the and clearly revenue within levels and leisure demand shows revenue ended exceptional to in On show on levels. cost, our to quarter. and this BRLX.X period XXXX always reported convenient We compared to more raise our Slide million in I This in of billion, months Brazilian below second pattern would and was Omicron, to Thanks XX demand clear was leisure you XXX% by the and quarter The Azul's consecutive it about can are you were improve. more driven corporate a quarter reached revenues our demand. gives the recapture and giving ability earning estimate really nine continues that Corporate and we're margin EBITDA March compared leisure shows as reduce margin the and to them our is ability to or impact reasons moving pre-pandemic grow. In that airline XXXX to BRLXXX we're Whether XXXX. the to beyond a in the in corporate turned strength This been This I so the XXX improved demand in pure work-from-anywhere, cities travel. growth. customers Brazil, sustained all only begins work more on we

there's in come revenue XX% and more So to recovered still means it come XXXX. that fares at higher corporate will

X bookings between than that flown RASK with year. you XXXX Let last to strong the in this will saw leads months. Strong in in of clearly the described me how and the fares you same on result strong the Slide unit already booking from reality. I Azul hockey-stick repeat just happen revenue trends corporate year, a quickly for can improvement now the the Slide see war X. adjust industry reacted On start capacity to late trends February flown the The segment. clearly proof type massive Since new fares April. We to We can seen the Ukraine, and see revenue. XX% in to the is this higher

of flown In active continue is strong total demand to it compared the and tools for that to loyalty means turn talked Azul show more To what environment. are bookings I sustaining and give see how forward. we an seeing believe can over details points the via active ability use combined maintained Great you combination strong. important customers this be doubled On with will than and you value have of want surprised going doing on driver Slide me exactly more revenue you ever. or to about While leads XX, experienced of XX because that David cargo the vacations, our for a additional XXXX. to be million to demand though strong customer a let second to are plus Mostly and that This quarter, as or more channels customers quarter and network. the money, growth the this more points great is which quarter, Abhi. we been members end engagement, customers the can engagement what time pace reached the broad there positively by and we at

continued Thanks, John. revenue record fares average compared are expansion record at The XXXX. seeing to means we booked rapid

our XQ XX%, average expansion exit RASK was the While rate March higher. was in much

trend you the that can second RASK XX, XXXX. on higher see consolidates compared significantly As to quarter Slide with

weakest record the In industry a advantages what well in usually as the today. overall all-time and direct are result revenue. as record market the fact, that competitive even of we flown our quarter is amazing discipline of unit seasonally, revenue business in all-time is the an expecting This is what is

benchmarks. want also stack global we show Slide against on to We up some XX, you how

our is focus. unit less macro Metrics are as fuel, share load laser Our challenges as is inflation, what In revenue need focused the factor end industry is We important. such that market that know to or we leading. on recovery the such capacity currency recoveries with healthy important. be really our main and

high turn extends directly to John is talk quality in a capacity objective about disciplined competitive manner back our revenue. and results. that, our advantages resulting to With it our over deploy that further I'll Our to supports in

challenging. on rebuilding fuel airline. focused Thanks, Abhi But and even an two in we years, past structure, efficient remains the our more cost into long-term have yes, Azul

of years side, denominated XX% XX% XXXX, CASK inflation as impressive on the fuel our prices in mainly as If and against see ASK, real on due more XX% in their nature up of compared increase and the can which XX% than given CASK XXXX first accumulated a to $X.XX, you to cargo, On the inflation achievement compared costs. over we the not fuel real flat, dollar, by CASK adjust Slide do was three the in same was effects period. cost quarter quarter XX, to that time generate for an our depreciation essentially

more We emerging truly are a efficient airline. as

XX, As during see, on you operation flow Slide the our cash million can quarter. BRLXXX in generated

During the well quarter, quarter CapEx. ended of to and highlight billion quarter liquidity above deferrals also BRLX.X we It's debt the continue that we leases, with immediate paying important first XXXX. our

our raised needed. as credit also lines BRLXXX ability reinforcing to million, We access

we reminder, restricted cash. the next repayments debt As significant and no two a years over have no

due compared leases. Slide the X.X in debt which our we Moving mainly appreciation billion. XX, quarter gross to gross or on BRLX billion by decreased and December a billion debt of XXst, the In real, to XX% almost reduced down X.X to debt paid XX%

potential how compared our will I'm grow shows X.X On we XX told pre-IPO grow. future, you earnings triple to X of year, billion billion public all to back into the our is we our XX, to this of EBITDA business. expect this proud Looking and levels. XXXX we we our about to improving forecast, that grow profitably. EBITDA market how Slide expect When as even are leverage and challenges next. earnings XXXX. and say the so the year we our the with generate can actually this we our Slide grow in in XXXX, see would excited With

and up of Slide prouder To earnings consistent this leverage shows be and XXXX couldn't all wrap growing I now in powered Azul team. by entire and forecast year reduction beyond, strong on the generation. Our XX, significant

the and we During on reduction. focused liquidity pandemic, cost our our

and attention to I our call our and operator. of best remain that, turn David, Alex, crew we advantage, I'll members answer your all while competitive the the future unique to our creating with aviation and We Now confident will the for turn the customers. this our experience Abhi, earnings. With continue the over and questions grow business Brazilian market our to to profitably, about ability

Savi ahead. first question [Operator Instructions] Syth Our comes go James. Please with from Raymond

what yet here? Can of when, some you I of the recovery, on the demand other as see ask there what's not have the trend components And corporate recovered? relook latest can kind And forward components recovering? we

here. Savi, Yes. Abhi

have really over What talked components Services, well yet about, we as recovered So, XXXX, XXX% and oil than is average, later it's worse but that catching not the it's is has accelerating. fully means start If well. average. than David obviously, XXXX agro and finance, I positive is the compared hasn't gas which now such has recovered recovered finance better to the average up. XXXX compare at versus that very doing a

it's as travel And actually all airlines. going that. Brazilian to not around is government especially government, And much I as to. to as demand change year, large all the the Our with it elections used think of and of that's this activity a the federal provider actually flying

So finance the say, are I two above that sectors accelerating XXXX, and recovering, would but are to are average. they government compared they two because still the are

fuel helpful. XXXX and considerations there of 'XX Thank I you and depreciation are if of just XXXX, curious the important price other that might XXXX on that's any from baked So, assuming for slide kind the you're what into projection or effects outlook? And kind standpoint you. the

Yes, so we and have basically FX. fuel both curve, the forward Savi, for

above you five into coming and above that XXXX, historical still levels. is roughly get range fuel as but And so slightly of which down kind slightly real in

both I Yes. fuel think assumption, They correlated also and obviously, an are And add, very it's just don't that's with Savi right? FX, important to but to that right. important correlated and know fares, they

I have on exhibit, had we we think deck. we us all it we day, on demonstrated showed our institutional our this it --

right. the but of is is fuel you very for adjust for operate are on a to kind to and X you conditions shows go in confident this the it EBITDA it fair If under take And of FX, would our is cost year. down just that X.X the zero, it any right, EBITDA XXXX our the current ability and billion EBITDA billion we of and some this side, on of business side, fuel FX. majority That

here assumption obviously affairs a Abhi fuel it's So we for very different affirm know and highly and are -- We correlated. obviously don't X does you also $XXX all this the real run an very because variables tremendous the to may job, for but necessarily at time, oil barrel. wasn't level, fair the a FX. a we but important sensitivities be have and they levels assumption those at volatile, at would have if can't are wasn't

what XXXX? can be And just you again, like doing XXXX on so remind and depreciation in Alex, us that should

The depreciation of aircraft?

Yes.

Just what the… depreciation given

Yes, the line. deprecation

line in is to the I of with going rest more what the year. probably for see think QX you're

I because is to the redeliveries. of accounting the quarter in sort also of you terms both a fleet regular in so of -- can year and yes, of the new for because this policy depreciation engine So, think QX increase full consider

question Linenberg comes with Deutsche next Michael Bank. Our from

actually rents if the that deferred on on deleveraging of us you be pay know, It's well? is down provide still will portion -- detail that Alex, next Maybe with that'd update begin you give you. And the you've Shannon on Mike. this more you plan? an as I Can some I for your can for Doherty great stated numbers, you one strategy? mean, to year. just us Is guys could

we IFRS our After debt, XX. vast of a kind to leases, of capitalized majority of important is biggest don't two because what debt. We or lot is about are markets have leases that The debts bank Sure. debt capital our right. It's debt of talk our operating issued. bonds

first of The second of October matures XXXX. XXXX, in in June one one the

markets access under a currently situations able So, they the have. we to difficult are what capital terms been we've and in of ways away much than more maturing,

continue confident of sources we capital. those So, we're can that accessing

trend deal EBITDA. our getting of So, averaging from to of back us the natural majority the come will

our for slide 'XX. have that 'XX for at look have we pandemic the where years XXXX then you and and then EBITDA If the you two have expectations XXXX, you our

can promised get our essentially that on to getting ratios you that performance provided track what as IPO. Now, see that we're back of we we'll you. with back we on just to And is sort delivery, we in natural which leverage be able our those to deliver

couple highlight to a want just things. I

And X to of scenario confident billion feel just kind That's of constantly of year. the billion X of a and of negotiating about talked take we're versus lease terms a our you right? about repayment partners, in debt, X.X And current doing talked past debt, leverage. right, the our reaffirm macro next EBITDA even If you X, business. billion in as with clearly part we that's

negotiate constantly with with were go to they them of to some supposed have we so, Russia. And some the aircraft lessors, trouble operating

So, looking at opportunities. we're constantly

stand just deleveraging that's the profitability And of this year. as it's to normal the next do our as by billion -- so, business. but course we commitments, But X airlines just year the billion X.X and comes back we doing comes

for be BRLX CASK of the of capacity mentioned fuel we up EBITDA, you've outlook will thinking your XX% but my next? for about questions. in that come possibly year majority total given from and versus leverage and with year again And 'XX. fares with and rest updated the a full the that revenue, increased the thinking this higher this ASK How should efficiency about million Thanks

pass to over then Alex, aircraft pandemic, took the we I'll and start through want to I but Yes, it right.

the X aircraft numbers, at us in the we the only ability and a day so, quarter. looking hours utilized we're first And for our

to X, is leverage pushing operating forward. up get the day utilization significant we as hours the that a XX we so, move back by And

has where so, produce And this ability much more that's we're ASK producing, it's and coming airline the than to from. currently

CASK to the kind of going that Yes, and It's what there's next a to forecast, year? right. do rest lot and in for year you on CASK, going important to is of the note

time, inflation a than cost XX%. about a to lot higher automation on ride don't driver of three same margin in business a upgauging, CASK hurt and to the three of over prices lot since as are and at a generates the evaluation had to group, XXXX, you reductions you're of up last a talk compare have because So, down fuel, more hand, We get reduction cash But there by significantly And able have That's is then XXXX Fuel why CASK cargo plus lot significant using one is profitable by productivity -- we technology. has talking average years. lot in to which for were noise -- implemented of our there's burn grown XXXX. that we transform burn, production. RASK much CASK it's right. also it's a it our help coming you like about fleet, the does to but of we The right. fuel have, years when we the group obviously fuel we reality the the more lot contribution, dollars the

difficulty] how with much as some provided visibility we So, to you our… in now [Technical

please speakers. hold. Ladies may we'll Ladies Ladies and and while gentlemen, gentlemen, proceed. please you Ladies please hold. gentlemen, reconnect hold the gentlemen, and now and

me, modeling. know noting one when lost don't also but CASK that's on I the thing So, you worth

will else for the the ASKs half half. FX, is worth it's much ASKs, the drop, as continuing and our kicking that all controlling second cargo. in noting fuel increase But and our for growth first in CASK and inflation in right, see so you leverage in higher year operational we equal, As this to

you. Thank

comes Zamacona Suisse. next from question Credit with Our Alejandro

revenue RASK. quarter, For you're the downside expecting second to more in

can I'm what just -- what's these driver the what's So, for we for for wondering, expect behind profitability guys second quarter? and the

it discipline side, environment. On environment capacity the and RASK is discipline fair the the

over February example, to alone XX%. Just up for April from are fares our

days, lead very in all-time booking record all-time going We seeing record are booking April. to in very second record booking was booking very, record That a Last a to now. we had in revenue flown day bookings another So, day strong week. March, right strong is week quarter.

capacity combination us I'm very fares high And highest of the so, with sure well, our the bookings And in average for the combined the discipline. as strong industry history. with very

So from October. July it's to flat our flat, to capacity from is to June going March be again

advantage I war, in John of job, said, industry accelerating the things environment lease the done rapidly corporate recovery. that. crisis fuel good the So, responding very like we a And think has and taking as and strong to are

will so, second quarter. bookings the RASK, in unit in record seeing revenue that record are And result unit we

sources Yes, terms this seasonality but profitability, have and a very you QX, tailwind QX, in for have drives QX us. that down of good couple of from normally profitability we path into of

right, is, about a he we any than in we're said that help bad And normal. quarter in one It's record first million RASK the BRLXXX historical So going Omicron, record right, said have us having guy us RASK, impact, as is the talking second EBITDA for for record we that not Abhi RASK, as RASK, profitable Azul's of record in historical about quarter. of should not the quarter. for terms to the to was also which RASK QX estimate more Omicron history, have

right. of profitability a the the is in in our maybe year, something than normal quarter, seasonal our but is the most can particularly the QX second reasons best you fourth for higher So quarter. fourth quarter year, expect of On half

on may, the then, updates deals potential And my with you LATAM? have any if second I is do question

Yes, about really, LATAM. really we're talking not

I think not radar on right our that's that's something now.

their you I the confident standalone process. do see think could what through as from we're And in business, been revenue has Abhi on very able side. they're Azul to the going

process. their so, And we'll respect

the our deal core and what very Brazil here in but confident we're doing get business. to on out, have we're with they with creditors think and I focusing

in no good, upside of any 'XX. are the kind Azul maybe X If that kind any it's of that co-chair the of Alejandro consolidation. good with joint we X.X billion to that be of there'll also venture and provided standalone our reminder forecast. all website it's happens, Those Yes, a billion for in from numbers and 'XX

Barclays. from next Our with question comes Monsivais Pablo

from pick I vacations, what in the on working will be now, that basis, know, Why an Brazilian am certain going second consumer from are reaching two there And peak? it going still my question And on especially demand first markets very I one think either your do demand I That market structurally to more leisure on is brain I don't curious has reduced? changed will be Thank of do be the price don't on if XX-month in that forward? know you they sensitivity. is terms into anywhere? my the year more the will leisure to you. done fares. excellent you question. What you thinking clients? has But job that mean, or a years increasing you think the upside, taking or changed think in have

Hey, here. hey, Pablo, Abhi,

I you XXX% you pent coming don't back is first what to you it And seasonality. So let booking year, at corporate very One know and level strong. look recovery when the me you the give very on right. an agencies, travel it's leisure changed weekends. have is weekends, demand way know, Because guys we and bookings, example. that interesting one don't thing we And said very, on you to last got measure of up weekend, really new last it's leisure level if September, us. up have bookings Is we bookings to for pent in example, and versus And booking It what are summer October, There peak last sustained is is of had of November, there demand? the demand, up right. year, it a we on Is seeing, So compare not weekend is same demand? bookings, peak? demand. our Is sort of Sundays is ahead potential this the summer for Saturdays revenue it no just pent no the

fact because so gotten So, someone actually actually good nature is that more be changed the seasonality. have which has It's for we tend because we thing network and many our corporate. more of to us destinations, flat, of less which like to be is pretty seasonal that the tend one

if And right. in in so you May, seasonality And same the changed. like bookings in They've your as experienced almost September airline, an never U.S., your has be it's will the bookings that. tell

And now used so, And is I has be something demand flatter a to think than leisure changed. level. it demand is higher that work-from-anywhere the seasonality at

strength booking on June, And very, August. And And encouraging our side, more for even we prices are forward. volume curves, us increase to than We we see the continue very look opportunities so curve. going frankly, seeing out at to the July, pricing have our to we in booking for need to that's to see. seeing are

point any seeing not disciplined. we're so, customer. industry the resistance And overall this at from The is

As I the ahead said, summer be to to peak our capacity year, of disciplined end as July season. well, the is going the of

see players the to far see. we going looks pretty you're it curve, medium-term not can any from terms so, we pretty And as have in short-term, solid all can what the booking of involved. It's as And shocks of capacity. visible to

we are where are the new people There's of cities, of went are breadbasket coming add, Brazil, in. demand that there's more to XX business making mentioned, in new the broader, today, more also that they around the with cities commodity Just pockets David ever all there's than money XX And prices, with they've traveling lot there's made before. Brazil, a world Brazil. they're is -- because ag

where all important very is built a kind fly And the of what Brazil being Paulo think and triangle we out over dedicated last I've lot and talked I do so, Brazil. broad. really done where well that midwest to network about our decade. And Azul that's we've Brasilia. that And that's We country, The is São And is Rio, right? the of assets. we've understand our we Azul's really, network throughout that's of really really what

comes Our Amorim Sachs. question next Goldman Bruno from with

just I to my have actually wanted interpretation your the first guidance. two, validate one, of

above validate Meaning to this quarter? ASK close XX% question that to rationale. this you were wanted delver the above So In respective fourth throughout first second your in Meaning quarter, quarter to or ASKs X% XX% you you're year. you should XX%, So first fleet-size flexibility. the add double so. quarter, XXXX will year, saying around be be XX% the the the is in the XXXX. And should just

how think the So, think are, of we fairs. pressures grow the be to have? in how And fuel you lower, fuel it? though growth passed prices, long-term short-term, flexibility you even higher you know vis-à-vis should I do that do cost all How prices guess about the to propensity tend the the jet to much course, where about jet ASK on

about fuel of think wanted to do understand costs? Just evolution and capacity jet you how manage vis-à-vis the

Bruno. Hey,

quarter-by-quarter which sort revolution, the May, stopped regarding flying remember Brazil had XXXX, April, Avianca So, of we June.

XXXX. so, their we towards up end the some of picked of aircraft And

We also first some of EX had deliveries. the

So regards and because above the towards comparison year average, closer well. end average, of had XQ We deliveries average AXXXs as of a only then the down, growth much XQ XQ to more the will lot will XXXX. to the and of aircraft the and EXs and come be because XQ, that

for we're average our capacity then from actually and capacity, much end but regards average of in absolute that it be and it the pretty of So, comparison XXXX to taking XQ July closer XQ, the And very said, steady, slow. like I is to year to the will XQ.

our domestically to of daily, not for capacity as example. well. are we steady our even to an example. be are. in even July We'll in of And a for so, daily were give U.S. many I'll we in March end UB And June, July, and the right Internationally, now, flying to very competitors only example, just

discipline make And demand strong, continues on but it sure it's we it obviously, way. to market. that So, depends be we the in to important rationalized the keep that keep demand,

or of deliveries that. have we changes terms anything the end like year no in major of So, until the

so, market. overall revenue to much a it's the and performance And discipline slow very discipline tied going rollout, be in to

to our on just Bruno, and Hey, respond flexibility the cargo we community with mean, six kind I that EXs fleet you the working of the partners the has, converted right, OEMs. leasing with and and into the that shows aircraft, flexibility have we

flying we so, just or just cargo. AXXX And put fact can XXX, deploy, I that our flying is think domestically ATRs, the internationally, XXXX, with

been has that, over back greatest last our have. And think two tools online. We to things have bring others our toolkit that strength fleet I don't in the our years

competitors, a they about and flights think us. because that's and huge day XXX do advantage can a strategic a day, for I our that have things flights we XXX closest next We can't,

Our Trent next Citi. Stephen question with comes from

us was missed me. you with the I me as color. or are you're actually believe a itself? much What agreement if your you next I heading for could with you. second if remind fuel I Just and it, apologies your quarter how one thoughts give for Thank little two And wondering United Airlines, could well, month? expiring

market. They've been Yes, ours. our we're and this as expires United the an great partner XXth. for it agreement And them would to a in extension right, open, June of of about talking potential with one keeping kind

really don't share have And any to details so, to we further Steve. that,

tend Brazilians next have right, sold, on hedging about is tie we have close Yes. in. like the we seats and loaded And front try XX% to said, because of hedging, XX the the actually for book Steve, been it percentage sort the to months fairly that to we of

to next So, of as pass we in shorter, than little had a so, ability we that next cost exposure farther probably months. to short is inventory lot. fairly my is year. the the much the oil the But hedge have what hedge Brazilian off don't Brazil, need fares. for looking oil the exposure booking curve into trails year kind in But in the that's for we and if of assume bit so second right? through a XXX% because XX higher get because about hedge terms general, I can to airlines of XX my to hedge of I we sold then increases And have the lower Normally wouldn't curve the is need talked to XXX% quarter

Please hold. and gentlemen, you. Ladies thank

you If there's issues. Feel We'll look at everybody further Thank time. out no you. thank free and appreciate we we We in questions, on get the we'd Abhi fix Thais, conferences to that like forward participating to results. your next the telephone to Apologize further additional for look to seeing Alex, forward myself to delivering reach time. call. for

Azul's the for conclude your day. audio does that for a Thank very today. have gentlemen, and you participation Ladies conference good much and