John Peter Rodgerson, CEO of Azul (AZUL4), recently highlighted the benefits of consolidation in the Latin American airline industry. In an interview with Bloomberg, Rodgerson emphasized that merging operations can reduce capital costs and improve customer service. While he did not comment on specific merger activities, reports suggest Azul is exploring a potential merger with Gol.
Latin American airlines have faced significant challenges since the pandemic, with minimal government support leading to bankruptcies of major carriers like Avianca Holdings SA, Latam Airlines Group SA, and Grupo Aeromexico SAB in 2020. Brazilian airline Gol recently sought creditor protection, prompting discussions between Rodgerson and Brazilian President Luiz Inácio Lula da Silva on using public funds as collateral for loans to provide financial relief to airlines.
Despite obstacles such as currency devaluation and rising fuel costs, Rodgerson reaffirmed Azul’s EBITDA forecast for the year. The company anticipates a 25% increase in profit before certain items, with plans to reduce net debt and pay off outstanding bonds. This strategic focus on consolidation and financial stability showcases Azul’s resilience in the face of industry challenges.