Azul announced today that as of September 30, 2020, its liquidity position (money that it can use in a short period of time), including cash and cash equivalents, short-term investments and accounts receivable, totaled BRL 2.3 thousand million (USD 409 million), in amounts not yet audited, compared to BRL 2.25 billion in the previous quarter.
The company had originally forecast a cash consumption of approximately BRL 3 million per day for the second half of the year, but at the end of the third quarter, the figures indicate that the opposite occurred, presenting a cash increase of approximately BRL 0.7 million per day.
Excluding workers’ compensation, the cash increase would be BRL 1.5 million per day. This excellent liquidity performance is related to the implementation of its recovery plan, which includes successful negotiations with the different stakeholders, as well as a return in demand that is faster than expected.
For the fourth quarter of 2020, Azul estimates an average cash outflow of approximately BRL 2.5 million per day, with no significant debt payments as a result of in progress negotiations with its financial partners.
In the last six months, the company maintained its cash position without raising additional capital, and internal projections show sufficient liquidity for more than 30 months without major capital increase, that is, until mid-2023. The previous forecast was only until late 2021.
Azul also reported that it continues to evaluate available sources of capital in order to further strengthen its balance and take advantage of possible market opportunities.