SAO PAULO, March 27 (Reuters) - Brazilian airline Azul

has increased average booked fares by more than 20%

in the past three weeks, its President Abhi Shah told a call

with analysts on Friday, following a spike in oil prices linked

to the U.S.-Israeli war on Iran.

* Azul noted that in Brazil, changes in international fuel

prices are not immediately reflected in domestic prices.

* Pass-through with an average lag of about 45 days gives

companies more time to adjust, Shah said.

* Fuel represents around 35% of Azul's cash operating costs.

* A 10% increase in fuel prices would require a 2.5%

increase in total revenue to fully offset the impact.

* Strategies to mitigate higher oil prices include limiting

growth.

* Azul expects to cut its domestic capacity by 1%

year-on-year in the second quarter.