Azul announced (16-Mar-2020) a capacity reduction between 20% and 25% in Mar-2020 and 35% to 50% in Apr-2020 and beyond until the softening of the demand environment is normalised. The carrier suspended all international services with the exception of those operated from Campinas Viracopos Airport, effective 16-Mar-2020. In addition to suspensions, Azul is taking several measures to reduce its fixed costs, which represent approximately 40% of total operating cost, including:
- Executive management team salary cut of 25% until situation normalises;
- Hiring freeze;
- Payment deferral of 2019 profit sharing;
- Voluntary unpaid leave program with over 600 requests approved so far;
- Suspension of travel and discretionary spending;
- Grounding aircraft;
- Suspending all new aircraft deliveries.
Azul ended 2019 with BRL2.8 billion (USD559.91 million) in liquid assets, including cash and cash equivalents and accounts receivables. The carrier had no restricted cash as of 31-Dec-2019 and also held deposits and maintenance reserves totalling BRL1.7 billion (USD339.95 million) and long term investments totalling BRL1.4 billion (USD279.96 million). [more - original PR]