*

CEO says Azul ( AZUL ) well positioned to focus on operations,

after

market disuptions and debt restructuring in 2024

*

Azul ( AZUL ) posts slightly higher-than-expected core earnings for

Q4

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Azul ( AZUL ) sees EBITDA of about 7.4 billion reais this year,

implying

22% increase from last year

By Gabriel Araujo

SAO PAULO, Feb 24 (Reuters) - Brazilian airline Azul ( AZUL )

expects to go "back to basics" and be able to focus

more on its operations this year, Chief Executive John Rodgerson

said, after a challenging 2024 marked by some market disruptions

and a major debt restructuring.

"I am excited about 2025. It can't be worse than 2024," he

told Reuters in an interview as the carrier reported on Monday

fourth-quarter core earnings slightly above market expectations,

with full-year figures matching its previously released outlook.

Azul ( AZUL ) in 2024 struggled with

supply chain issues

delaying aircraft deliveries,

floods

that kept the key Porto Alegre airport closed for months, a

weaker Brazilian real, and balance sheet pressures leading to

debt deals

with lessors.

The carrier recently concluded the major restructuring that

included the termination of almost $1.6 billion in debt from its

balance sheet, while also raising $525 million in fresh money.

"We are well positioned as we have concluded all our

renegotiation, so now we can focus a lot more on operations. I

would say go back to basics and deliver the Azul ( AZUL ) product the

market knows," Rodgerson said.

"We did not do our best last year because we had to

survive. Now that we are alive, time to go back to what we used

to be."

Azul ( AZUL ) expects to deliver earnings before interest, taxes,

depreciation and amortization (EBITDA) of around 7.4 billion

reais ($1.29 billion) this year, implying growth of around 22%

when compared to 2024.

In the fourth quarter, core earnings reached 1.95 billion

reais, up 33% year-on-year, helped by higher passenger traffic

and load factor. Rodgerson highlighted unit revenue was roughly

flat on a yearly basis despite increased capacity.

Net revenue rose 10.2% in the fourth quarter to 5.54

billion reais.

Analysts polled by LSEG expected EBITDA to come in at 1.91

billion reais, while revenue was forecast to hit 5.62 billion.

"Azul's ( AZUL ) problem was never its operations, but its balance

sheet," the CEO said, noting that as part of its restructuring

lessors agreed to a debt-for-equity swap. "Despite everything,

we delivered what we promised the market."

Azul ( AZUL ) is now eyeing a potential business combination with

rival Gol that would create a dominant carrier in

Latin America's No. 1 economy, holding roughly 60% of the

domestic market.

($1 = 5.7300 reais)