Azul (AZUL4) appreciates more than 50% in three days and increases continue; shares jump up to 9% today (18) – Money Times


azul

Azul shares stand out for rising 54.2% in just three days (Image: Facebook/Azul Linhas Aéreas Brasileiras)

A Azul (AZUL4) rehearses another day of gains in Ibovespa (IBOV). In the first half hour of trading, the company took the lead, entered the auction with the maximum permitted fluctuation and jumped 9.92%, to R$6.87%.

However, the advance cooled and shares were up 1.12%, at R$6.32, at around 11:35 am.

According to a survey by Elos AytaAzul registered a 54.2% appreciation in just three days, between the trading sessions of September 12 and 17, after reaching its lowest historical price. In the period, this is the best performance among the stocks that make up the Ibovespa.

The company's market value rose to R$2.16 billion at the close of trading on September 17, an increase of R$761 million compared to the value recorded on September 12, the survey shows.

Despite the recovery seen in recent days, AZUL4 remains 90% below its historical peak on January 28, 2020, when it reached R$62.41. Still, in the year to date, the shares have fallen 55%.

In recent weeks, the airline's shares have reacted to news about the company's debts and negotiations with lessors.

On Monday (16), Azul confirmed that it is in negotiations with aircraft lessors to optimize the capital structure agreed in the capital optimization plan signed last year.

Among the terms being discussed is a replacement of the US$580 million debt with equity in the airline. In response, shares soared 15% on the day.

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Aid for airlines must be unlocked

The president Luiz Inacio Lula da Silva sanctions this Wednesday (18), the new General Tourism Law, which allows the use of resources do Fundo National Civil Aviation Agency (Fnac) to finance airlines that operate regular flights in the country.

“Financing for airlines is essential to expand the country’s aircraft fleet and the number of flights and tickets offered. This reduces the operating costs of companies and, consequently, reduces fares even further,” says Minister of Ports and Airports Silvio Costa Filho.

After approval, a FNAC Management Committee will be created to decide on the limits of FNAC resources that will be allocated to loans. The estimate is that the fund will allow around R$5 billion to strengthen airlines operating regularly in the country. Currently, FNAC has a balance of approximately R$8 billion, according to the ministry.

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