SAO PAULO, June 1, 2018 /PRNewswire/ -- Azul S.A. announces today the sale of six E-195s, continuing Azul's fleet transformation process. These E-Jets will be replaced by next-generation A320neos, which are more fuel-efficient and have 56 additional seats compared to the E-195, resulting in a unit cost reduction of approximately 29% on longer-haul domestic flights.
As a result of this transaction, our pro-forma first quarter 2018 debt position would have been reduced by R$ 244 million, net cash would have been increased by R$ 55 million and leverage in terms of adjusted net debt to EBITDAR would have been 3.8. Additionally, this sale will generate a non-recurring, non-cash book loss in our second quarter 2018 results and will be disclosed on our earnings release. These aircraft have been parked since the first quarter of 2018 to be prepared for sale.
"The replacement of older generation aircraft with larger, next generation, fuel-efficient aircraft, is key to support our CASK reduction and margin expansion plan going forward. Our goal is to accelerate this process as much as we can, especially in a scenario of more volatile exchange rates and fuel prices", said John Rodgerson, Azul's CEO.
Azul's fleet plan announced in March of 2018 remains unchanged. The company expects to end the year with an operating fleet of 124 aircraft consisting of 63 E-Jets, 33 ATRs, 20 A320neos and 8 A330s.
Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of cities served, offers 739 daily flights to 106 destinations. With an operating fleet of 120 aircraft and more than 10,000 crewmembers, the company has a network of 206 non-stop routes as of March 31, 2018. This year, Azul was awarded best airline in Latin America by TripAdvisor Travelers' Choice and in 2017, the Company was elected best low cost carrier in South America for the seventh consecutive time by Skytrax. Azul also ranked as most on-time airline in Brazil and most on-time low-cost carrier in the Americas in 2017 according to OAG's Punctuality League, the industry's most comprehensive annual ranking of on-time performance. For more information visit www.voeazul.com.br/ir.
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SOURCE Azul Linhas Aéreas