SAO PAULO (Reuters) - Brazilian airline Azul ( AZUL ) on Monday reported fourth-quarter core earnings slightly above market expectations and said it was optimistic about this year, after a challenging 2024 marked by a major debt restructuring.

The carrier's earnings before interest, taxes, depreciation and amortization (EBITDA) reached 1.95 billion reais ($340.31 million) in the October-December period, it said, up 33% year-on-year, helped by higher passenger traffic and load factor.

Analysts polled by LSEG expected EBITDA to come in at 1.91 billion reais in the quarter.

"The combination of a weakening Brazilian real, the floods in Rio Grande do Sul state, significant OEM (original equipment manufacturers) and supply chain issues, and higher-than-expected fuel prices made for a very challenging year," CEO John Rodgerson said in a statement.

Full-year EBITDA reached 6.07 billion reais, in line with Azul's ( AZUL ) previously released outlook of more than 6 billion reais.

Net revenue rose 10.2% in the fourth quarter to 5.54 billion reais, while analysts expected 5.62 billion reais.

Azul ( AZUL ) recently concluded a major restructuring that included the termination of almost $1.6 billion in debt from its balance sheet, while it also raised $525 million in fresh money.

The company 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.