Azul SANYSE: AZUL

AZUL stock grapples with weak liquidity, driven by a surge in gross debts. However, the company benefits from declining operating costs.

SUNNYVALE, Calif.--(BUSINESS WIRE)--Azul, the only company 100% focused on Java, today announced strong growth and continued momentum across the Asia Pacific region as organizations turn to its OpenJDK solutions to address cost and performance challenges in the wake of Oracle's Java SE pricing change and rising cloud expenses. Region Leverages Azul's Solutions to Address Business Challenges Asia Pacific businesses are grappling with new financial pressures as a result of the changes to Oracle's.

AZUL's top line is bolstered by an uptick in air travel demand. However, low liquidity is a major headwind.

Azul presented good operational trends in its 1Q24 results. It is worth remembering that the airline sector was the most affected by the pandemic and has not yet fully recovered. Another highlight of 1Q24 was the codeshare agreement with competitor GOL, and in my view, this agreement will enhance the company's business model. The valuation shows a 15% discount for Azul compared to its peers when we use the comparative analysis method with the EV/EBITDA multiple.

Brazilian airline Gol said on Tuesday its parent company Abra Group has started talks with airline Azul to "explore opportunities," following media reports earlier this year that pointed to a potential merger.

Azul and rival Gol have announced a codeshare alliance and the combination of their customer loyalty programs. The deal is reportedly the first step towards a merger that would help stabilize the Brazilian air travel market.

Azul continues to anticipate 2024 EBITDA to be around R$6.5 billion.

Customers will have access to extensive flight connectivity with over 150 destinations and can choose in which program to accumulate points from codeshare flights SÃO PAULO, May 24, 2024 /PRNewswire/ -- Azul and GOL airlines announce today a commercial cooperation agreement that will connect their flight networks in Brazil through a codeshare agreement. This partnership covers all domestic routes operated exclusively, meaning rotes operated by one of the two companies but not the other.

Customers will have access to extensive flight connectivity with over 150 destinations and can choose in which program to accumulate points from codeshare flights SÃO PAULO, May 23, 2024 /PRNewswire/ -- Azul and GOL airlines announce today a commercial cooperation agreement that will connect their flight networks in Brazil through a codeshare agreement. This partnership covers all domestic routes operated exclusively, meaning routes operated by one of the two companies but not the other.