Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
No Trading Symbol Flag | true |
Entity Registrant Name | AZUL SA |
Entity Central Index Key | 0001432364 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Filer Category | Large Accelerated Filer |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Address, Country | BR |
Title of 12(b) Security | Preferred Shares |
Security Exchange Name | NYSE |
Common shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 928,965,058 |
Preference shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 329,568,166 |
American Depositary Shares [member] | |
Document Information [Line Items] | |
Trading Symbol | AZUL |
Title of 12(b) Security | American Depositary Shares |
Security Exchange Name | NYSE |
Consolidated statements of fina
Consolidated statements of financial position - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | |||
Cash and cash equivalents (Note 6) | R$ 1647880 | R$ 1169136 | R$ 762319 |
Short-term investments (Note 7) | 62,009 | 517,423 | 1,036,148 |
Restricted investments | 8,808 | ||
Trade and other receivables (Note 8) | 1,165,866 | 1,069,056 | 914,428 |
Aircraft sublease receivables (Note 9) | 75,052 | 73,671 | 57,768 |
Inventories (Note 10) | 260,865 | 200,145 | 150,393 |
Assets held for sale (Note 14) | 51,850 | ||
Security deposits and maintenance reserves (Note 13) | 258,212 | 144,192 | 130,112 |
Taxes recoverable | 139,668 | 283,841 | 112,891 |
Derivative financial instruments (Note 24) | 168,148 | 6,654 | 10,345 |
Prepaid expenses (Note 11) | 139,403 | 115,453 | 82,656 |
Other current assets | 169,778 | 110,623 | 198,807 |
Total current assets | 4,138,731 | 3,690,194 | 3,464,675 |
Non-current assets | |||
Long-term investments (Note 24) | 1,397,699 | 1,287,781 | 835,957 |
Aircraft sublease receivables (Note 9) | 204,452 | 288,067 | 308,824 |
Security deposits and maintenance reserves (Note 13) | 1,393,321 | 1,402,528 | 1,129,015 |
Derivative financial instruments (Note 24) | 657,776 | 588,726 | 410,477 |
Prepaid expenses (Note 11) | 22,216 | 21,683 | 4,472 |
Taxes recoverable | 244,601 | ||
Other non-current assets | 497,567 | 397,398 | 169,816 |
Right-of-use – lease (Note 14) | 7,087,412 | 4,926,326 | 4,377,725 |
Right-of-use – aircraft maintenance (Note 14) | 497,391 | 632,900 | 374,384 |
Property and equipment (Note 14) | 1,968,840 | 1,842,239 | 1,880,771 |
Intangible assets (Note 15) | 1,087,484 | 1,016,556 | 961,000 |
Total non-current assets | 15,058,759 | 12,404,204 | 10,452,441 |
Total assets | 19,197,490 | 16,094,398 | 13,917,116 |
Current liabilities | |||
Loans and financing (Note 17) | 481,227 | 158,813 | 419,198 |
Lease liabilities (Note 18) | 1,585,233 | 1,237,909 | 914,600 |
Accounts payable (Note 19) | 1,376,850 | 1,287,661 | 971,750 |
Accounts payable – Supplier finance (Note 19) | 249,727 | 162,778 | 0 |
Air traffic liability (Note 20) | 2,094,254 | 1,672,452 | 1,287,434 |
Salaries, wages and benefits | 357,571 | 244,008 | 246,336 |
Insurance premiums payable | 49,938 | 34,999 | 24,411 |
Taxes payable | 49,060 | 56,999 | 44,418 |
Federal tax installment payment program | 13,480 | 9,749 | 9,772 |
Derivative financial instruments (Note 24) | 81,196 | 180,975 | 48,522 |
Provisions (Note 21) | 323,441 | 36,083 | |
Other current liabilities | 200,043 | 193,492 | 151,696 |
Total current liabilities | 6,862,020 | 5,275,918 | 4,118,137 |
Non-current liabilities | |||
Loans and financing (Note 17) | 3,036,929 | 2,597,313 | 2,159,241 |
Lease liabilities (Note 18) | 10,521,388 | 7,681,837 | 6,428,893 |
Derivative financial instruments (Note 24) | 228,994 | 260,019 | 378,415 |
Deferred income taxes (Note 16) | 242,516 | 293,211 | 142,102 |
Federal tax installment payment program | 119,300 | 95,705 | 105,431 |
Provisions (Note 21) | 1,489,911 | 713,941 | 553,155 |
Other non-current liabilities | 215,606 | 326,492 | 422,713 |
Total non-current liabilities | 15,854,644 | 11,968,518 | 10,189,950 |
Equity | |||
Issued capital (Note 22) | 2,243,215 | 2,209,415 | 2,163,377 |
Capital reserve | 1,928,830 | 1,918,373 | 1,898,926 |
Treasury shares (Note 22) | (15,565) | (10,550) | (2,745) |
Other comprehensive loss (Note 22) | (159,261) | (153,969) | (14,688) |
Accumulated losses | (7,516,393) | (5,113,307) | (4,435,841) |
Total equity | (3,519,174) | (1,150,038) | (390,971) |
Total liabilities and equity | R$ 19197490 | R$ 16094398 | R$ 13917116 |
Consolidated statements of net
Consolidated statements of net income (loss) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Operating revenue (Note 25) | ||||
Passenger revenue | R$ 10907889 | R$ 8670132 | R$ 6695340 | |
Cargo and other revenue | 534,428 | 386,932 | 1,009,491 | |
Total revenue | 11,442,317 | 9,057,064 | 7,704,831 | |
Operating expenses | ||||
Aircraft fuel | (3,085,603) | (2,644,261) | (1,848,195) | |
Salaries, wages and benefits | (1,868,402) | (1,413,017) | (1,296,166) | |
Landing fees | (724,971) | (592,100) | (490,569) | |
Traffic and customer servicing | (476,481) | (395,394) | (357,841) | |
Sales and marketing | (444,079) | (368,663) | (309,540) | |
Maintenance materials and repairs | (354,105) | (250,105) | (484,156) | |
Depreciation and amortization | [1] | (3,670,884) | (1,284,050) | (1,063,378) |
Other operating expenses, net | [1] | (2,013,192) | (915,850) | (612,194) |
Total operating expenses | (12,637,717) | (7,863,440) | (6,462,039) | |
Operating income (loss) | (1,195,400) | 1,193,624 | 1,242,792 | |
Financial result (Note 26) | ||||
Financial income | 72,071 | 74,522 | 128,272 | |
Financial expense | (1,329,524) | (1,094,828) | (1,078,598) | |
Derivative financial instruments, net | 325,452 | 298,094 | (90,171) | |
Foreign currency exchange, net | (391,905) | (1,306,063) | 34,859 | |
Financial result | (1,323,906) | (2,028,275) | (1,005,638) | |
Result from related parties transactions, net | (16,959) | 381,725 | 176,975 | |
Net income (loss) before income tax and social contribution | (2,536,265) | (452,926) | 414,129 | |
Income tax and social contribution (Note 16) | (2,228) | (11,224) | 2,875 | |
Deferred income tax and social contribution (Note 16) | 135,407 | (171,581) | 7,509 | |
Net income (loss) | R$ 2403086 | R$ 635731 | R$ 424513 | |
Common shares [member] | ||||
Statement [Line Items] | ||||
Diluted net income (loss) per share(Note 22) | R$ 0.09 | R$ 0.03 | R$ 0.02 | |
Basic net income (loss) per share (Note 22) | (0.09) | (0.03) | 0.02 | |
Preference shares [member] | ||||
Statement [Line Items] | ||||
Diluted net income (loss) per share(Note 22) | (7.05) | (1.88) | 1.32 | |
Basic net income (loss) per share (Note 22) | R$ 7.05 | R$ 1.88 | R$ 1.35 | |
[1] | Includes non recurring items consisting of impairment chage and one time costs related to the sublease of 53 E195 totalling R$2,873,157 (Note 1). |
Consolidated statements of ne_2
Consolidated statements of net income (loss) (Parenthetical) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Statement of comprehensive income [abstract] | |
Impairment charge and one time costs related to sublease | R$ 2873157 |
Consolidated statements of othe
Consolidated statements of other comprehensive income (loss) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
Net income (loss) | R$ 2403086 | R$ 635731 | R$ 424513 |
Other comprehensive income to be reclassified to profit or loss in subsequent periods: | |||
Changes in fair value of cash flow hedges, net of tax | (5,292) | (139,281) | 31,309 |
Total comprehensive income (loss) | R$ 2408378 | R$ 775012 | R$ 455822 |
Consolidated statements of chan
Consolidated statements of changes in equity - BRL (R$) R$ in Thousands | Total | Issued capital | Capital reserve | Treasury shares | Cash flow hedge reserve | Accumulated losses | |
Beginning balance (Currently Stated [member]) at Dec. 31, 2016 | R$ 1001987 | R$ 1488601 | R$ 1290966 | R$ 33785 | R$ 1743795 | ||
Beginning balance (Impact of adoption of IFRS 16 [member]) at Dec. 31, 2016 | (3,128,771) | (12,212) | (3,116,559) | ||||
Beginning balance at Dec. 31, 2016 | (2,126,784) | 1,488,601 | 1,290,966 | (45,997) | (4,860,354) | ||
Statement [Line Items] | |||||||
Profit (loss) for the period | 424,513 | 424,513 | |||||
Other comprehensive income (loss) | 31,309 | 31,309 | |||||
Total comprehensive income (loss) | 455,822 | 31,309 | 424,513 | ||||
Issued capital (Note 22) | 1,307,979 | 661,500 | 646,479 | ||||
Issuance of shares due exercise of stock options (Note 22) | 17,899 | 13,276 | 4,623 | ||||
Share issuance costs (Note 22) | (71,283) | (71,283) | |||||
Treasury shares, net (Note 22) | (2,745) | R$ 2745 | |||||
Share-based payment expense (Note 28) | 28,141 | 28,141 | |||||
Ending balance (Previously stated [member]) at Dec. 31, 2017 | (390,971) | 2,163,377 | 1,898,926 | (2,745) | (14,688) | (4,435,841) | |
Ending balance (Impact of adoption of IFRS 9 [member]) at Dec. 31, 2017 | [1] | (416) | (416) | ||||
Ending balance (Impact of adoption of IFRS 15 [member]) at Dec. 31, 2017 | [2] | (41,319) | (41,319) | ||||
Ending balance (After adjustment of adoption new IFRS [Member]) at Dec. 31, 2017 | (432,706) | 2,163,377 | 1,898,926 | (2,745) | (14,688) | (4,477,576) | |
Ending balance at Dec. 31, 2017 | (390,971) | ||||||
Statement [Line Items] | |||||||
Profit (loss) for the period | (635,731) | (635,731) | |||||
Other comprehensive income (loss) | (139,281) | (139,281) | |||||
Total comprehensive income (loss) | (775,012) | (139,281) | (635,731) | ||||
Issuance of shares due exercise of stock options (Note 22) | 47,634 | 46,038 | 1,596 | ||||
Treasury shares, net (Note 22) | (7,805) | (7,805) | |||||
Share-based payment expense (Note 28) | 17,851 | 17,851 | |||||
Ending balance at Dec. 31, 2018 | (1,150,038) | 2,209,415 | 1,918,373 | (10,550) | (153,969) | (5,113,307) | |
Statement [Line Items] | |||||||
Profit (loss) for the period | (2,403,086) | (2,403,086) | |||||
Other comprehensive income (loss) | (5,292) | (5,292) | |||||
Total comprehensive income (loss) | (2,408,378) | (5,292) | (2,403,086) | ||||
Issuance of shares due exercise of stock options (Note 22) | 37,767 | 33,800 | 3,967 | ||||
Treasury shares, net (Note 22) | (5,015) | (5,015) | |||||
Share-based payment expense (Note 28) | 6,490 | 6,490 | |||||
Ending balance at Dec. 31, 2019 | R$ 3519174 | R$ 2243215 | R$ 1928830 | R$ 15565 | R$ 159261 | R$ 7516393 | |
[1] | The Company applied, for the first time, IFRS 9 in 2018, opting not to present comparative information showing retrospectively the results from the adoption of IFRS 9. | ||||||
[2] | The Company applied IFRS 15 for the first time in 2018, using the modified retrospective adoption method. |
Consolidated statements of cash
Consolidated statements of cash flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income (Loss) for the period | R$ 2403086 | R$ 635731 | R$ 424513 |
Adjustments to reconcile net loss to cash flows provided by (used in) operating activities | |||
Depreciation, amortization and impairment | 3,670,884 | 1,284,050 | 1,063,378 |
Unrealized hedge results | (367,753) | (298,799) | (9,287) |
Share-based payment expenses | 17,239 | 17,851 | 28,141 |
Exchange (gain) and losses on assets and liabilities denominated in foreign currency | 448,901 | 1,243,882 | (37,991) |
Interest (income) and expenses on assets and liabilities | 1,082,256 | 866,895 | 776,470 |
Related parties | (3,241) | 76,949 | (73,241) |
Deferred income tax and social contribution | (135,407) | 171,581 | (7,509) |
Allowance for doubtful accounts | 1,993 | 5,168 | 1,586 |
Provision for inventory | 17,791 | 3,259 | (6,218) |
Provisions | 897,831 | 70,439 | 78,469 |
Loss (profit) on sale of property and equipment and de-recognition of lease contracts | 106,914 | 246,069 | (33,168) |
Changes in operating assets and liabilities | |||
Trade and other receivables | (98,803) | (160,427) | (242,739) |
Sublease receivables | 66,899 | 4,854 | 46,859 |
Inventories | (78,511) | (53,011) | (37,073) |
Security deposits and maintenance reserves | (49,431) | (65,030) | (168,940) |
Prepaid expenses | (24,483) | (50,475) | (9,979) |
Recoverable taxes | (15,718) | (170,950) | (68,403) |
Other assets | (103,233) | (210,302) | (101,696) |
Derivatives | (2,412) | (373,831) | (157,353) |
Accounts payable | 87,636 | 245,785 | (95,097) |
Accounts payable - Supplier finance | 86,949 | 162,778 | |
Salaries, wages and employee benefits | 113,563 | (2,328) | 59,862 |
Insurance premiums payable | 14,939 | 10,588 | 147 |
Taxes payable | (8,417) | 12,581 | (20,412) |
Federal installment payment program | 27,326 | (8,722) | 116,316 |
Air traffic liability | 421,802 | 322,410 | 338,074 |
Provision taxes, civil and labor risks | (93,718) | (62,653) | (81,624) |
Other liabilities | (112,578) | (42,680) | 52,332 |
Interest paid | (969,061) | (845,297) | (821,173) |
Income tax and social contribution paid | (2,434) | ||
Net cash provided by operating activities | 2,594,637 | 1,764,903 | 1,014,244 |
Short-term investment | |||
Acquisition of short-term investments | (1,355,455) | (2,843,002) | (3,673,743) |
Disposal of short-term investments | 1,816,862 | 3,387,015 | 3,044,183 |
Long-term investment | |||
Loan granted to third parties | (51,028) | ||
Disposal of long-term investments | (96,161) | 1,122 | |
Restricted investments, net | 5,635 | 120,925 | |
Proceeds from sale of property and equipment | 59,381 | 363,157 | 177,316 |
Acquisition of intangibles | (132,454) | (100,204) | (56,148) |
Acquisition of property and equipment | (1,427,965) | (1,086,442) | (695,032) |
Net cash used in investing activities | (1,186,820) | (273,841) | (1,081,377) |
Debentures | |||
Proceeds | 700,000 | 200,000 | |
Repayment | (64,345) | (168,098) | (1,153,230) |
Loans and financing | |||
Proceeds | 592,312 | 98,940 | 1,710,650 |
Repayment | (109,959) | (747,231) | (942,288) |
Lease repayment | (1,372,701) | (1,082,239) | (795,010) |
Proceeds from sale and leaseback | 16,276 | 11,889 | 39,461 |
Issuance of shares due exercise of stock options | 37,767 | 47,634 | 17,899 |
Redemption of preferred shares | (44,655) | ||
Issued capital, net of issued cost | 1,213,373 | ||
Net cash used in by financing activities | (913,503) | (1,151,284) | 243,455 |
Exchange gain (loss) on cash and cash equivalents | (15,570) | 67,039 | 36,833 |
Net increase (decrease) in cash and cash equivalents | 478,744 | 406,817 | 213,155 |
Cash and cash equivalents at the beginning of the period | 1,169,136 | 762,319 | 549,164 |
Cash and cash equivalents at the end of the period | 1,647,880 | 1,169,136 | 762,319 |
Treasury shares | |||
Loans and financing | |||
Treasury shares | R$ 12853 | R$ 12179 | R$ 2745 |
Operations
Operations | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Operations | 1. Operations Azul S.A. (“Azul”) is a corporation headquartered at Av. Marcos Penteado de Ulhôa Rodrigues, 939, in the city of Barueri, in the state of São Paulo, Brazil. Azul was incorporated on January 3, 2008 and is a holding company for providers of airline passenger and cargo services. Azul and its subsidiaries are collectively referred to as the “Company”. Azul Linhas Aéreas Brasileiras S.A. (“ALAB”), a 100% owned subsidiary incorporated on January 3, 2008, has operated passenger and cargo air transportation in Brazil since beginning operations on December 15, 2008. Canela Investments LLC (“Canela”), a 100% owned special purpose entity, headquartered in the state of Delaware, United States of America, was incorporated on February 28, 2008, to acquire aircraft outside of Brazil and lease them to ALAB. The Company’s shares are traded on the BM&FBOVESPA and American Depositary Share (“ADS”) on the New York Stock Exchange (“NYSE”). The consolidated financial statements are comprised of the individual financial statements of the entities as presented below: % equity interest Entities Main activities Country of December 31, December 31, Azul Linhas Aéreas Brasileiras S.A. (ALAB) Airline operations Brazil 100.0% 100.0% Azul Finance LLC (a) Aircraft financing United States 100.0% 100.0% Azul Finance 2 LLC (a) Aircraft financing United States 100.0% 100.0% Blue Sabiá LLC (a) Aircraft financing United States 100.0% 100.0% ATS Viagens e Turismo Ltda. (a) Package holidays Brazil 99.9% 99.9% Azul SOL LLC (a) Aircraft financing United States 100.0% 100.0% Azul Investment LLP (a) Group financing United States 100.0% 100.0% Fundo Garoupa (b) Exclusive investment fund Brazil 100.0% 100.0% Fundo Safira (a) Exclusive investment fund Brazil 100.0% 100.0% Canela Investments LLC (Canela) (a) (c) Aircraft financing United States 100.0% 100.0% Canela 336 LLC (d) (h) Aircraft financing United States — 100.0% Canela 407 LLC (d) Aircraft financing United States 100.0% 100.0% Canela 429 LLC (d) Aircraft financing United States 100.0% 100.0% Canela Turbo Three LLC (d) Aircraft financing United States 100.0% 100.0% Daraland S.A. (a) Holding Uruguay 100.0% 100.0% Encenta S.A. (Azul Uruguai) (e) Airline operations Uruguay 100.0% 100.0% TudoAzul S.A. Loyalty programs Brazil 100.0% 100.0% Cruzeiro Participações S.A Participation in others societies Brazil 99.9% 99.9% Global AzulAirProjects, SGPS, S.A. (Global) (g) Participation in others societies Portugal 45.45% — (a) Azul’s investment is held indirectly through ALAB. (b) Azul’s investment is held 4% directly and 96% through ALAB. (c) Transfer of ownership from Azul to ALAB on December 1, 2017. (d) ALAB’s investments are held indirectly through Canela. (e) Investments are held indirectly through Daraland. (f) Subsidiary incorporated on February 6, 2018. (g) The shares held by HACAIL were transferred to Global on July 1, 2019. (h) Subsidiary ended August 15, 2019 As of December 31, 2019, the Company had a negative equity of R$3,519,174 (December 31, 2018 - R$1,150,038) and net current liabilities s are • Full retrospective adoption of IFRS 16 - Leases, with an impact of R$4,313,738 as of total equity • The impairment of 53 Embraer E195 aircraft and associated assets, due to the acceleration of the transformation of the Company’s fleet, with a negative impact of R$2,873,157 in statement of income (loss) in the year ended December 31, 2019. As a result of the COVID-19 global pandemic which is affecting the economy on a global scale, the Company has implemented a number of measures to reduce costs to reflect the slowdown in the Brazilian economy while preserving its cash position, including: i) capacity adjustments by reducing total capacity by over ii) fixed costs reduction through a 50% pay cut for executive officers and directors and a 25% salary reduction for managers and the launch of a successful leave of absence program with adhesion of over 10,000 crewmembers; iii) suspension of aircraft deliveries during 2020; and iv) active management of all areas of working capital, elimination of non-critical capital expenditures, renegotiation of payment terms with all commercial partners and the discussion of new credit facilities with financial institutions, in particular with the Brazilian Development Bank (BNDES), who announced a support package worth R$10 billion in credit lines for the Brazilian airline sector. The Company anticipates that these initiatives to obtain additional sources of liquidity, along with measures to contain operational expenses and non-essential capital expenditures outflows, will provide resources to endure a prolonged downturn in demand. Management constantly evaluates the profitability of its operations and its financial position, acting in a solid and timely manner to adapt to the evolving circumstances triggered by governmental regulations and market dynamics in the face of the COVID-19 pandemic. Acceleration of fleet transformation In 2019, management approved the Embraer E195 phase-out plan, including the sublease of 53 E195 aircraft, following Azul’s strategy to accelerate the replacement of its entire domestic fleet of E195 jets with larger, next-generation E2 aircraft that are more fuel-efficient due to new engine technology. This change to the intended use of the aircraft has triggered an impairment review. A non-financial Under IFRS 16, Azul capitalizes the right - - Azul applied the full retrospective transition approach on January 1, 2019, under which the comparative information from prior periods was restated. Upon transition, Azul recognized a right-of-use - - Recoverable amount is the higher of value in use and fair value less costs of disposal. The value in use of the E195 aircraft and related parts and equipment affected by the acceleration plan was determined using cash flow projections from the phase-out plan approved by senior management covering a seven - • Revenue from sublease contracts • Delivery and ongoing maintenance costs • Salvage value for finance lease and owned aircraft at the end of the sublease contracts • E • US Dollar pre-tax The fair value less cost to sell of the E195 fleet was determined using third party valuations and considering specific circumstances of the fleet such as aircraft age, maintenance requirements and condition resulting in a Level 3 classification in the fair value hierarchy. As a result of the impairment analysis, the Company recorded an impairment of non current assets and right-of-use assets of R$2,032,207 recognized in “Depreciation, Amortization and Impairment”. In addition in accordance with IAS 36, an impairment charge is not fully allocated if the assets do not have sufficient book value to absorb the charge in its entirety. Consequently, for this portion not absorbed, an additional net cash provision for onerous contract totaling R$797,591 was recognized in “Other expenses” in the statements of net income (loss), with a corresponding entry to “Provisions” in the balance sheet. Furthermore, additional assets and liabilities were adjusted to reflect the impact of the accelerated fleet transformation plan including: i) R$91,826 write - t The total impact of the impairment conside ring the - TwoFlex Acquisition On February 21, 2020, our wholly-owned subsidiary, Azul Linhas Aéreas Brasileiras, and Two Taxi Aereo, “TwoFlex”, announced that they have entered into a certain Quota Purchase Agreement under which we agreed to acquire the Brazilian regional carrier TwoFlex for the total purchase price of R$123 million. TwoFlex is a domestic airline based in Jundiaĺ, Brazil, founded in 2013 and offers regular passenger and cargo service to 39 destinations in Brazil, of which only three regional destinations are currently being served by Azul. TwoFlex also holds 14 daily departure and arrival slots on the auxiliary runway of Congonhas, São Paulo’s downtown airport. Congonhas is a particularly coveted airport because of its proximity to São Paulo’s business districts. Currently, our two larger competitors, Gol and LATAM, control most of the flights in Congonhas. TwoFlex’s fleet is composed of 17 owned Cessna Caravan aircraft, a regional turboprop with a capacity of nine passengers. On March 27, 2020, the Brazilian Administrative Council for Economic Defense (CADE – Conselho Administrativo de Defesa Econômica |
Basis of preparation of financi
Basis of preparation of financial statements | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Basis of preparation of financial statements | 2. Basis of preparation of financial statements The consolidated financial statements of the Company for the years ended December 31, 2019, 2018 and 2017, were authorized for issuance by the executive board of directors on April 30 The consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and in Brazilian Reais, which is the functional currency of the Company. The consolidated financial statements provide comparative information in respect of the previous period. In addition, the Company presents an additional statement of financial position at the beginning of the preceding period when there is a retrospective application of an accounting policy, a retrospective restatement, or a reclassification of items in financial statements. The financial statements were prepared using the historical cost basis, except for certain financial instruments, which are measured at fair value. The Company has adopted all standards and interpretations issued by the IASB and the IFRS Interpretations Committee that were in effect on December 31, 2019. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Significant accounting policies | 3. Significant accounting policies 3.1. Basis f or consolidation The consolidated financial statements comprise the financial statements of Azul and its subsidiaries as of December 31, 2019. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if and only if the Company has: • Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee) • Exposure, or rights, to variable returns from its involvement with the investee, and • The ability to use its power over the investee to affect its returns. The Company re-assesses When necessary, adjustments are made to the financial statements of subsidiaries to align their accounting policies with those of the Company. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Company are eliminated in full on consolidation. 3.2. Cash and cash equivalents Cash and cash equivalents are held in order to meet short-term cash commitments and not for investment or other purposes. The Company considers as cash equivalents deposits or instruments which are readily convertible into a known cash amount and subject to an insignificant risk of change in value. The Company considers as cash equivalents instruments with original maturities of less than three months. 3.3 Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. 3.3.1. Non-derivative Initial recognition Non-derivative Trade receivables that do not contain a significant financing component are measured at initial recognition at the transaction price. Classification of financial instruments Under IFRS 9, classification and measurement of financial instruments is based on the business model of the Company to manage financial assets and on the contractual cash flow characteristics of the financial assets. Financial assets are classified in three categories: (i) measured at amortized cost, (ii) measured at fair value through other comprehensive income, and (iii) measured at fair value through profit or loss For a financial asset to be classified and measured at amortized cost or at fair value through other comprehensive income, it needs to give rise to cash flows that are “exclusively principal and interest payments” (also referred to as the “SPPI” test) on the principal amount outstanding. This evaluation is performed at instrument level. The Company’s business model for managing financial assets refers to how it manages its financial assets to generate cash flows. The business model determines whether cash flows will result from the collection of contractual cash flows, the sale of financial assets or both. Purchases or sales of financial assets that require the delivery of assets within a period established by regulation or convention in the market (regular negotiations) are recognized on the trade date, that is, the date on which the Company undertakes to buy or sell the asset. Business model assessment The business model assessment requires classification of the asset in one of the business models defined by IFRS 9. The business models reflect how the Company manages the financial asset in order to generate cash flows on the basis of scenarios that the Company reasonably expects to occur. In order to perform the business model assessment, the Company has grouped financial assets in portfolios of assets that are managed together. Management Objective Measurement Collect contractual payments over the life of the instrument Amortized cost Collecting contractual cash flows and selling financial assets Fair value through other comprehensive income Held for trading or measured in a fair value basis Fair value through profit or loss Contractual cash flow characteristics assessment The contractual cash flow characteristic assessment requires to determine whether the contractual cash flows of the assets consists solely of payment of principal or interest on the principal amount outstanding “SPPI”. When the asset cash flows is SPPI, it will be subsequently measured following the result of the business model assessment. However when the asset cash flows is not SPPI, it will be measured at fair value through profit or loss irrespective of the result of the business model assessment. Subsequent measurement of the financial assets of the Company The criteria for subsequent measurement of the financial assets of the Company is presented below: • At amortized cost – Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired ; Financial assets at amortised cost includes: restricted investments, trade and other receivables other than credit card receivables, receivables from related parties, security deposits and maintenance reserves; • At fair value through other comprehensive income (OCI) – For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss ; • At fair value thorough profit of loss – Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortised cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of profit or loss. Financial assets at fair value through profit or loss include:Financial instruments, short-term investments and the TAP Convertible Bonds presented under long-term investments 3.3.2. Non-derivative Initial recognition Financial liabilities are initially classified as financial liabilities at fair value through profit or loss, financial liabilities at amortized cost, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. Non-derivative Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in the statement of profit or loss. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. The Company has not designated any financial liability as at fair value through profit or loss. Loans and borrowings This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss. All non-derivative 3.3.3. Financial instruments and hedge accounting– Initial recognition and subsequent measurement Initial recognition and subsequent measurement The Company uses financial instruments, such as currency forward contracts options and NDF to hedge itself against the currency risk, heating oil swaps to hedge the fuel price risk and interest rate swaps to hedge against the interest risk. Financial instruments not designated as hedge instruments are recognized initially at fair value on the date when the derivative contract is entered into and are subsequently remeasured at fair value. The accounting for subsequent changes in fair value to derivatives that are hedge instruments in a hedge accounting depends of the nature of the item being hedged and the type of hedge relationship designated. Derivatives are presented as financial assets when the instrument’s fair value is positive and as financial liabilities when fair value is negative. Any gains or losses from changes in the fair value of derivatives not designated to hedge accounting during the year are recorded directly in profit or loss. The accounting treatments for derivatives designated as hedge instruments are presented in the next topic. Hedge accounting The following classifications are used for hedge accounting purposes: • Fair value hedge when hedging against exposure to changes in fair value of recognized assets or liabilities, or an unrecognized firm commitment. • Cash flow hedge when providing protection against changes in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction which may affect the income or foreign currency risk in an unrecognized firm commitment. On inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which the Company wishes to apply hedge accounting, as well as the Company’s objective and risk management strategy for undertaking the hedge. The documentation includes identification of the hedge instrument and item or transaction being hedged, the nature of the risk being hedged and risks excluded, and effectiveness assessment approach using prospect basis proving the existence of economic relationship between the hedged item and hedge instrument, that credit risk does not dominate the value changes that results from that economic relationship and how the hedge ratio is determined, including possible sources of ineffectiveness by performing a qualitative (when the critical terms of hedged item and hedge instrument match or are closely aligned – as nominal amount, maturity and underlying) or quantitative. Hedges that meet the criteria for hedge accounting are accounted for as follows: Fair value hedge The gain or loss resulting from changes in fair value of a hedge instrument (for derivative hedge instrument) or the foreign exchange component of its carrying amount is recognized in profit or loss or other comprehensive income, if the hedging instruments hedges an equity instrument for which the Company has elected to present changes in fair value in other comprehensive income. The gain or loss on the hedged item shall adjust the carrying amount of the hedged item (for on-balance If the hedged item is derecognized, the unamortized fair value is recognized immediately in profit or loss. When an unrecognized firm sales commitment is designated as a hedged item in a hedge relationship, the change in fair value of the firm sales commitment attributable to the hedge risk is recognized as a financial asset or as a financial liability, with the recognition of a corresponding gain or loss in the statements of net income (loss). The accumulated balance in the statement of financial position resulting from successive changes in fair value of the firm sales commitment attributable to the hedged risk will be transferred to the balance of the hedged item upon its recognition (recognition of balance is either of accounts payable or accounts receivable). The Company holds interest rate swaps to hedge against its exposure to changes in fair value of some of its aircraft financing (Note 24). Cash flow hedge The effective portion of a gain or loss from the hedge instrument is recognized directly in other comprehensive income. When the hedge ratio is not aligned, giving rise to ineffectiveness, but the risk management strategy is the same, the Company shall rebalance the hedge ratio in order to meet the hedge effectiveness requirements. Any gain or loss remaining from the hedge instrument (as result of the rebalancing) is deemed an ineffectiveness and shall be recorded in profit or loss. The amounts recorded in other comprehensive loss are transferred to the statement of net income (loss) in tandem with the hedged transaction impact on profit or loss. For example, when a forecasted sale occurs or when the income or expense being hedged is recognized. When the hedged item is the cost of a non-financial non-financial non-financial The Company shall discontinue hedge accounting prospectively only when the hedging relationship ceases to meet the qualifying criteria (after taking into account any rebalancing of the hedging relationship). If the occurrence of the forecast transaction or firm commitment is no longer likely, the amounts previously recognized in other comprehensive loss are transferred to the statement of net income (loss). If the hedge instrument expires or is sold, terminated, exercised without replacement or rollover, or if its designation as a hedge is revoked, any cumulative gain or loss previously recognized in comprehensive loss remains deferred in other comprehensive loss until the forecast transaction or firm commitment affects profit or loss. The Company uses swap contracts to hedge against its exposure to the risk of changes in floating rates related to its finance lease transactions and currency option to hedge the notional amount of debt denominated in foreign currency. Current and non-current Derivative instruments that are not classified as effective hedge instruments are classified as current, non-current non-current • When the Company expects to maintain a derivative as an economic hedge (and to not apply hedge accounting) for a period exceeding 12 months after the statement of financial position date, the derivative is classified as non-current non-current • Embedded derivatives that are not closely related to the host contract are classified in a manner consistent with the cash flows of the host contract. • Derivative instruments that are designated as and are effective hedge instruments are classified consistently with the classification of the underlying hedged item. The derivative instrument is segregated into current and non-current 3.3.4. Derecognition of financial assets and financial liabilities Financial assets Financial assets, or where appropriate, part of a financial asset or part of a group of similar financial assets, are derecognized when: • The rights to receive cash flows from the assets have expired; or • The Company has transferred their rights to receive cash flows of the assets and (a) the Company has substantially transferred all the risks and benefits of the assets, or (b) the Company has not transferred or retained substantially all the risks and benefits related to the assets, but has transferred control of the assets. When the Company has transferred their rights to receive cash flows from assets and has not transferred all the risks and rewards relating to an asset, that asset is recognized to the extent of the continuing involvement of the Company. In this situation, the Company also recognizes an associated liability. The transferred assets and associated liabilities are measured based on the rights and obligations that the Company has retained. Continuing involvement that takes the form of a guarantee on the assets transferred is measured by the original book value of the assets or the maximum payment that may be required from the Company, whichever is lower. Financial liabilities A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender with substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability, with the difference in the corresponding book values recognized in the statements of net income (loss). 3.3.5. Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liability simultaneously. 3.3.6. Impairment of financial assets The Company recognizes an allowance for losses on financial assets for expected credit losses in line of IFRS 9 requirements. Trade receivables and contract assets The Company uses the simplified approach allowed by IFRS 9 to estimate the allowance for losses on trade receivables. Under the simplified approach , In estimating expected credit losses the Company considers credit card receivables as receivables with a low risk of default. Considering that it has a relevant history of no credit risk losses on such receivables and that it does not expect losses during the lifetime of those receivables no allowance has been recognized for those assets. In order to estimate expected credit losses for other trade receivables and contract assets , , The estimate of the impact of future economic conditions is based on the observed correlation of defaults with macroeconomic indicators. The Company periodically reviews the historic period over which defaults are measured and, the relevant macroeconomic indicator to use and how the correlate with the experience of defaults. Other financial assets For other financial assets , , For financial assets with no significant increase in credit risk , , An allowance for loss is recognized when the Company estimates that the risk of credit losses during the period exists. In measuring the allowance , 3.3.7. Fair value of financial instruments The fair value of financial instruments actively traded in organized financial markets is determined based on prices quoted in the market at close of business at the statement of financial position date, not including the deduction of transaction costs. The fair value of financial instruments for which there is no active market is determined using valuation techniques. These techniques can include use of recent market transactions, references to the current fair value of other similar instruments, analysis of discounted cash flows, or other valuation models. An analysis of the fair value of derivative financial instruments and more details about how they are calculated is described in Note 24. 3.4. Inventories Inventories consist of aircraft maintenance parts, snack supplies and uniforms. Inventories are valued at cost or net realizable value, whichever is lower, net of any provision for inventory. 3.5. Taxes Income tax expense, deferred tax assets and liabilities reflect management’s best assessment of estimated current and future taxes to be paid. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized and the tax rates used, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. In Brazil, income tax is determined on each legal entity, that is, not on a consolidated basis. Provisions for income tax and social contribution are based on the taxable income of the year considering the offset of tax loss carryforwards, up to the limit of 30% of annual taxable income. Tax rates and tax laws used to calculate the amounts are those in force at the statement of financial position dates. The income from foreign subsidiaries is subject to taxation pursuant to local tax rates and legislation. In Brazil, these incomes are taxed according to Law 12.973/14. Deferred income taxes and social contribution arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. Deferred income tax assets and liabilities are measured at tax rates that are expected to be applicable in the year that the assets will be realized or the liability settled, based on tax rates (and tax law) enacted or substantially enacted on each statement of financial position date. The book value of the deferred tax assets is presented net if there is a legal or contractual right to offset tax assets against tax liabilities and deferred taxes are related to the same taxable entity and is reviewed on each statement of financial position date and written off to the extent that it is no longer probable that taxable profits will be available to allow that all or part of the deferred taxes assets will be used. Unrecognized deferred tax assets are reassessed on each statement of financial position date and are recognized to the extent that it becomes probable that future taxable profit will allow that the deferred tax assets be recovered. Deferred income tax and social contribution relating to equity items are recognized directly in equity. The Company assesses on a regular basis the tax status of situations in which tax law requires interpretation and records provisions if appropriate. 3.6. Foreign currency transactions The consolidated financial statements are presented in Brazilian reais (R$), which is the Company’s functional currency. Transactions in foreign currencies are initially translated into Brazilian reais using the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the exchange rates prevailing at the statement of financial position date. Non-monetary Non-monetary Differences arising on settlement or transaction of monetary items are recognized in the statement of net income (loss). Changes in fair value of the hedging instruments are recorded using the accounting treatment described in note 3.3. 3 3.7. Property and equipment Assets included in property and equipment are stated at acquisition or construction cost including interest and other financial charges. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows: Estimated useful lives Aircraft 12 years Furniture and fixtures 5 years Aircraft equipment 12 years Computer equipment and peripherals 5 years Tools 5 years Heavy maintenance – engines 3 to Heavy maintenance – structural checks 2 to 10 years Engines 12 years Leasehold improvements 10 years Simulators 20 years Vehicles 5 years The net book value and useful life of assets and the depreciation methods are reviewed at the end of each year and adjusted prospectively, if necessary. The book value of property and equipment is tested for impairment when there is an indicator that the carrying value may be greater than the estimated recoverable amount. An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in “Other operating expenses, net”. 3.7.1 . Lease The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value right-of-use Right-of-use The Company recognizes right-of-use Right-of-use right-of-use Right-of-use If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use Lease liabilities At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including insubstance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In 2018 and 2019, the total expenses related to the variable lease payments were immaterial. In calculating the present value of lease payments, the Company uses the interest rate implicit in the lease and, when it is not readily available, the incremental borrowing nominal rate at the lease commencement date. In determining the discount rate, the Company used, in each of the years in which assets were incorporated into the balance sheet, the cost of raising debt in the American and Brazilian markets. For operations in the Brazilian market, the Company converted the cost to the equivalent of a dollar transaction, adjusting for the country risk and interest rate differential between Brazil and United States. Thus, we understand that the inflationary effects are irrelevant, especially considering that 99.4% of the Company’s leases are determined in US dollars. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. Short-term leases and leases of low-value The Company applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value 3.7.2 . Sale and leaseback transaction If the Company transfers the asset to another entity and leases it back from the buyer, the Company applies the requirements under IFRS 15 to determine if the transaction qualifies as a sale for which revenue is recognized, or whether the transaction is a collateralized borrowing. If the transfer of the asset qualifies as a sale under IFRS 15, the Company measures a right-of-use asset arising from the leaseback as the proportion of the carrying amount of the asset that relates to the right-of-use retained. The gain (or loss) that the Company recognizes is limited to the proportion of the total gain (or loss) that relates to the rights transferred to the buyer-lessor. If the transfer of the asset does not meet the requirements of IFRS 15 to be accounted for as a sale of the asset, the Company continues to recognize the transferred asset and recognizes a financial liability equivalent to the cash received from the transfer in accordance with the requirements of IFRS 9. 3.7.3 . Sublease transaction When the underlying asset is leased again by the Company to a third party, and the original lease remains in effect, the Company assesses whether it is a finance or operating sublease by analyzing the extent to which the lease transfers the risks and benefits inherent in the right of use. Regardless of the sublease classification, the accounting for the lease liability of the original lease remains unchanged. • Finance sublease: the Company de-recognizes • Operating sublease: the Company continues to recognize the right of use, which in turn continues to depreciate in accordance with the Company’s policy. Sublease revenue is recognized throughout the sublease contract under the heading “Cargo and other revenues”. 3.7.4 . Aircraft and right-of-use At the initial recognition of aircraft or right-of-use The Company has maintenance contracts for its engines that cover all significant maintenance events. The Company has “power-by-the-hour” Subsequent heavy maintenance events and structural checks, which increase the useful lives of the assets, are capitalized and recognized as property and equipment or in addition to the right-of-use assets, according to the underlying asset. Subsequently they are depreciated during the respective period of use or until the end of the lease. Repairs and other routine maintenance are recognized in the maintenance expenses during the period in which they are incurred. 3.7.5 . Capitalization of contractual obligations with aircraft return conditions The costs resulting from the maintenance events that will be carried out immediately before the return of the aircraft to the lessors (defined as restoration events under IFRS 16) are recognized as provisions from the beginning of the contract, as long as they can be reasonably estimated. In addition, a right-of-use asset is recognized and depreciated on a straight-line basis over the lease term. 3.7.6 . Advance payments for acquisition of aircraft Advance payments for acquisition of aircraft are recorded in property and equipment, including interest and financial charges incurred during the aircraft manufacturing phase and improvements to third-party assets. The Company receives credits from manufacturers when purchasing certain aircraft and engines, which can be used to pay for maintenance services. These credits are recorded as a reduction in the acquisition cost of related aircraft and engines, against a charge to other accounts receivable and then recorded as an expense or asset, when the credits are used for the additional acquisition of goods or services. 3.8. Business Combinations The Company accounts for business combinations using the acquisition method. The cost of an acquisition is measured as the sum of the consideration transferred, based on its fair value on the acquisition date. Costs directly attributable to the acquisition are expensed as incurred. The assets acquired and liabilities assumed are measured at fair value, classified and allocated according to the contractual terms, economic circumstances and relevant conditions on the acquisition date. Goodwill is measured as the excess of the consideration transferred over the fair value of net assets acquired. If the consideration transferred is smaller than the fair value of net |
Significant accounting judgment
Significant accounting judgments, assumptions and estimates | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Significant accounting judgments, assumptions and estimates | 4 . Significant accounting judgments, assumptions and estimates The preparation of consolidated financial statements of the Company requires management to make judgments and estimates and adopt assumptions that affect the reported amounts of revenue, expenses, assets, liabilities and disclosures of contingent liabilities at the date of the financial statements. Uncertainty relating to these assumptions and estimates could lead to amounts that require a significant adjustment to the book value of assets or liabilities affected in future periods. In the process of applying the Company’s accounting policies, management has made the following judgments, estimates and assumptions which have the most significant effect on the amounts recognized in the consolidated financial statements: Estimates and assumptions The main assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, involving a significant risk of causing a material adjustment of the book value of assets and liabilities within the next financial year, are discussed below: Breakage The Company recognizes revenue from tickets sold that are expected to expire unused based on historical data and experience. Estimating expected breakage requires management to make judgments, among other things, on the extent to which historical experience is an indication of customer behavior. Annually, or more frequently as the experience data suggests, management reassesses the historical data and makes required improvements. Impairment of non-financial An impairment loss exists when the book value of assets or cash-generating unit exceeds its recoverable amount, which is the higher of fair value less sales costs and value in use. The calculation of fair value less sales cost is based on information available of transaction of similar assets or market price less additional costs for disposing of assets. The calculation of value in use is based on the discounted cash flow model. Cash flows are derived from the budget for the next five or seven years and do not include reorganization activities to which the Company have not yet committed or significant future investments that will improve the basis of assets of the cash-generating unit subject to the test. The recoverable amount is affected by the discount rate used in the method of discounted cash flow and expected future cash receipts and growth rate used for extrapolation. Transactions with share-based payments The Company measures the cost of transactions settled with its own shares with employees based on the fair value of such shares at the grant date or at each reporting date, as applicable. The Company must estimate at each reporting date the quantity of awards expected to be vested considering performance and non-market Provisions for tax, civil and labor risks The Company recognizes provisions for civil and labor suits. The assessment of probability of loss includes assessing the available evidence and jurisprudence, the hierarchy of laws and most recent court decisions, and their relevance in the legal system, or the assessment of independent counsel. Provisions are reviewed and adjusted to take into account changes in circumstances such as the applicable limitation period, findings of tax inspections and additional exposures identified based on new issues or decisions of courts (Note 21). Fair value of financial instruments When the fair value of assets and liabilities presented in the statement of financial position cannot be obtained in an active market, it is determined using valuation techniques including the discounted cash flow model. The data for these methods is based on those prevailing in the market when possible. However, when it is not feasible, a certain level of judgment is required to establish fair value. Judgment includes considerations on the data used, for example, liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the fair value of the financial instruments. “TudoAzul” Program - Loyalty Plan As described in Note 3.17, the Company accounts for “ TudoAzul based on the relative individual selling price Provision for return of aircraft and engines For aircraft under operating leases, the Company is contractually required to return the equipment at a predefined level of operational capability. The aircraft return cost provision is estimated based on expenditures incurred in aircraft reconfiguration (interior and exterior), licensing and technical certification, painting etc., according to return terms. The engine’s return cost provision is estimated based on evaluation and minimum contractual conditions of the equipment that should be returned to the lessor, considering not only the historical costs incurred, but also the equipment conditions at the time of evaluation. Determination of useful life and significant components of property and equipment and right-of-use The Company believes that important aircraft parts need to be separated, including engines, their respective scheduled heavy maintenance and structural checks. These parts are depreciated in accordance with the useful lives defined in the fleet renovation plan and the maintenance schedule. Discount rate used for the initial lease calculation When calculating the present value of lease payments, the Company uses the interest rate implicit in the lease and, when this cannot be readily determined, the Company’s incremental borrowing rate at the lease commencement date is used. The incremental borrowing rate is calculated based on the risk-free interest rate for a similar term and a similar economic environment to the lease, as of the lease commencement date, adjusted for the risk spread of the Company and the collateral specific to the lease. |
Financial risk management objec
Financial risk management objectives and policies | 12 Months Ended |
Dec. 31, 2019 | |
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Financial risk management objectives and policies | 5. Financial risk management objectives and policies The main financial liabilities of the Company, other than derivatives, are loans, debentures, lease payables and accounts payable. The main purpose of these financial liabilities is to finance operations as well as finance the acquisition of aircraft. The Company has trade accounts receivable and other accounts receivable that result directly from its operations. The Company also has investments available for trading and contracts for derivative transactions such as currency forwards, options and swaps in order to reduce the exposure to foreign exchange fluctuations. The Company’s senior management supervises the management of market, credit and liquidity risks. All activities with derivatives for risk management purposes are carried out by experts with the appropriate skillset and experience and under senior management supervision. It is the Company’s policy not to enter into derivatives transactions for speculative purposes. a) Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk consists of three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments exposed to market risk include loans payable, deposits, financial instruments measured at fair value through profit or loss and financial instruments. On July 24, 2019, the Company entered in a structured derivative transaction to hedge US$28 million related to the release of a new financing e The table below shows the effects of our hedges designated as of December 31, 2019 Book value Fair Value – hedge Consolidated post Denominated in foreign currency - US$ Aircraft and engine acquisition 896,232 (10,971 ) 885,261 Working capital 1,727,882 (303,507 ) 1,424,375 Denominated in local currency - R$ Aircraft and engine acquisition (FINAME) 164,280 (3,309 ) 160,971 Working capital 37,355 — 37,355 Finance lease — — — Total in R$ 2,825,749 (317,787 ) 2,507,962 The table below shows the indebtedness related to working capital denominated in foreign currency, designated as hedge accounting, considering the effects of the derivative instruments (exchanging the exposure for local currency) contracted by the Company: Risk Type of hedge Hedged Item Nominal amount Hedge Instrument Nominal December 31, 2019 Carrying Fair Value – hedge Debt 1) Senior Notes Azul LLP Foreign exchange risk Cash Flow Hedge Principal US$ on Senior Notes Azul LLP US$ 400 million Currency Options - Floor 3,2865 Cap 4,7500 US$ 400 million 1,605,914 (282,760 ) 1,323,154 2) Proceeds in foreign currency Interest rate swap and foreign exchange risk Fair value hedge Principal & Interest on 4.131 Transaction US$30 million IRS - Interest Rate Swap (receives US Libor3M + spread & pays 108% CDI) 98,940 121,968 (20,747 ) 101,221 Total 1,727,882 (303,507 ) 1,424,375 The table below shows the indebtedness related to aircraft acquisition denominated in foreign currency, designated as hedge accounting, considering the effects of the derivative instruments (exchanging the exposure for local currency) contracted by the Company: Risk Type of hedge Hedged Item Nominal amount Hedge Instrument Nominal amount December 31, 2019 Carrying Fair Value – hedge Debt Aircraft acquisition Interest rate swap and foreign exchange risk Cash Flow Hedge Principal US$ on OPIC US$79 million Currency Options - Floor 3,8070 Cap 4,7500 US$79 million 594,586 (10,971 ) 583,615 Interest rate swap and foreign exchange risk Fair value hedge Principal & Interest R$76,200 IRS - Interest Rate Swap (fixed 6% to 58% and 61% of CDI) R$76,200 44,249 (3,309 ) 40,940 638,835 (14,280 ) 624,555 a.1) Interest rate risk Interest rate risk is the risk that the fair value of future results of a financial instrument fluctuates due to changes in market interest rates. The exposure of the Company to the risk of changes in market interest rates refers primarily to long-term obligations subject to variable interest rates. The Company manages interest rate risk by monitoring the future projections of interest rates on its loans, financing and debentures as well as on its operating leases. To mitigate this risk, the Company has used derivative instruments aimed at minimizing any negative impact of variations in interest rates. Sensitivity to interest rates The table below shows the sensitivity to possible changes in interest rates, keeping all other variables constant in the Company’s income before taxes that are impacted by loans payable subject to variable interest rates. For the sensitivity analysis, the Company utilized the following assumptions: • LIBOR based debt: weighted average interest rate of 5.34% p.a. • CDI based debt: weighted average interest rate of 4.74% p.a. We estimated the impact on profit and loss and equity for the year ended December 31, 2019 resulting from variation of 25% and 50% on the weighted average rates, as shown below: 25% -25% 50% -50% Interest expense 29,430 (29,430) 58,860 (58,860) a.2) Currency risk Currency risk is the risk that the fair value of future dollar denominated commitments vary according to the fluctuation of the foreign exchange rate. The exposure of the Company to changes in exchange rates relates primarily to the U.S dollar denominated loans, financing and leases, net of investments in the U.S. dollar, and also to revenues and operating expenses originated in U.S. dollar. The Company is also exposed to changes in the exchange rate of the Euro through its investment in the TAP Convertible Bonds (Note 24). The Company manages its currency risk by using financial instruments seeking to hedge up to twelve months of its projected non-operational The Company continuously monitors the net exposure in foreign currency and, when deemed appropriate, enters into arrangements to hedge the projected non-operating The Company’s nominal foreign exchange exposure is shown below: Exposure to U.S. dollar Exposure to Euro December 31, December 31, 2019 2018 (Restated) 2019 2018 Assets Cash and cash equivalents and short-term Investments 289,297 356,174 — — Security deposits and maintenance reserves 1,613,221 1,513,963 — — Sublease receivables 279,504 361,738 — — Long-term investments 160,871 — 1,236,828 1,287,781 Financial instruments 121,968 116,564 — — Other assets 244,355 122,456 — — Total assets 2,709,216 2,470,895 1,236,828 1,287,781 Liabilities Accounts payable (424,411 ) (455,777 ) — — Loans and financing (*) (2,624,114 ) (1,756,989 ) — — Leas e (12,034,392 ) (8,948,314 ) — — Other liabilities (688,134 ) (44,925 ) — — Total liabilities (15,771,051 ) (11,206,005 ) — — Derivatives (NDF) – notional 2,940,333 2,186,356 — — Net exposure (10,121,502 ) (6,548,754 ) 1,236,828 1,287,781 (*) As of December 31, 2019, US dollar denominated working capital loans totaling R$2,158,933 were swapped to Brazilian Reais, yielding a non-realized gain of R$314,500 and resulting in a net US dollar exposure on Loans and Financing of R$465,181. Sensitivity to exchange rates At December 31, 2019, the Company used the closing exchange rate of R$4.0307/US$1.00 and R$4.5305/EUR1.00. We present below a sensitivity analysis considering a variation of 25% and 50% over the existing rates: Exposure in US$ 25% -25% 50% -50% R$5.0384/US$ R$3.0230/US$ R$6.0461/US$ R$2.0154/US$ Effect on exchange rate variation (2,530,398) 2,530,398 (5,060,797) 5,060,797 Exposure in EUR 25% -25% 50% -50% R$5.6631/EUR R$3.3979/EUR R$6.7958/EUR R$2.2653/EUR Effect on exchange rate variation 309,207 (309,207) 618,414 (618,414) a.3) Risks related to variations in prices of aircraft fuel The volatility of prices of aircraft fuel is one of the most significant financial risks for airlines. The company’s fuel price risk management aims to balance the airline exposure to its market peers, so that the airline is neither overly affected by a sudden increase in prices nor is unable to benefit from a substantial fall in fuel prices. The Company manages the risk related to fuel price volatility either through forward - - Fuel price sensitivity The table below sets out the sensitivity of the Company’s fuel hedges to substantial changes in the oil markets, maintaining all other variables constant. The analysis considers a change in oil prices, in Reais, relative to the market average for the current period and forecast the impact on the Company’s financial instruments, stemming from a variation of 25% and 50% in the oil prices, using the closing exchange rate of R$4.0307/US$1.00 as follows: Change in Oil prices in Reais 25% -25% 50% -50% Impact on fuel hedges 379,673 (261,317 ) 700,031 (582,002 ) a.4) Risk related to changes in the fair value of TAP Convertible Bonds and investments in Global AzulAirProjects TAP Convertible Bonds contain a conversion option into shares of TAP. In addition Global AzulAirProjects The acquisition of the TAP Convertible Bonds and the participation in Global AzulAirProjects is part of the commercial strategy of the Company of creating synergies between the Company and TAP by having the option to become a direct shareholder of TAP in case the stock price of TAP increases and it is economically advantageous to convert the debt into TAP shares. b) Credit risk Credit risk is inherent in operating and financial activities of the Company, mainly represented under the headings of trade receivables, cash and cash equivalents, including bank deposits. The credit risk of “trade receivables” is comprised of amounts payable by major credit card companies, and also trade receivables from travel agencies, and sales payable in installments. The Company usually assesses the corresponding risks of financial instruments and diversifies the exposure. Financial instruments are held with counterparties that are rated at least “A” in the assessment made by S&P, Moody’s and Fitch, or, mostly, are hired in futures and commodities stock exchange, which substantially mitigates the credit risk. TAP Convertible Bonds are secured by liens over certain intangible assets. Additionally, the Company, under the non-binding non-adjusted During the second quarter of 2019, there was an auction for the sale of isolated production units, pursuant to ’s judicial recovery plan, whose proceeds would primarily serve to repay the loans. To date, the judicial sale of isolated production units has not been completed, including in view of the decision of the National Civil Aviation Agency (ANAC) to redistribute slots. The Company continues to monitor the evolution of the judicial recovery process of Avianca Brasil and its developments in order to verify the recoverability of the loans by this means, as well as adopting all applicable enforceable measures to collect the debtor and guarantors amounts. c) Liquidity risk Liquidity risk takes on two distinct forms: market and cash flow liquidity risk. The first is related to current market prices and varies in accordance with the type of asset and the markets where they are traded. Cash flow liquidity risk, however, is related to difficulties in meeting the contracted operating obligations at the agreed dates. As a way of managing the liquidity risk, the Company invests its funds in liquid assets (government bonds, CDBs, and investment funds with daily liquidity), and the c m p The schedule of financial liabilities held by the Company is as follows: December 31, 2019 Immediate Until 6 7 to 12 1 to 5 years More than Total Loans and financing 42,619 162,269 276,339 3,003,090 33,839 3,518,156 Lease liabilities 271,524 598,472 715,237 8,081,759 2,439,629 12,106,621 Accounts payable 975,465 277,388 123,997 — — 1,376,850 Accounts payable – Supplier finance 249,727 — — — — 249,727 Liabilities from derivative transaction 2,135 46,987 32,074 228,994 — 310,190 1,541,470 1,085,116 1,147,647 11,313,843 2,473,468 17,561,544 Capital management The Company’s assets may be financed through equity or third-party financing. If the Company opts for equity capital it may use funds from contributions by shareholders or through selling its equity instruments. The use of third-party financing is an option to be considered mainly when the Company believes that the cost would be less than the return generated by an acquired asset. It is important to ensure that the Company maintains an optimized capital structure, provides financial solidity while providing for the viability of its business plan. As a capital-intensive industry with considerable investments in assets with a high aggregated value, it is natural for companies in the aviation sector to report a relatively high degree of leverage. The Company manages capital through leverage ratios, which is defined by the Company as net debt divided by the sum of net debt and total equity. Management seeks to maintain this ratio at levels equal to or lower than industry levels. Management includes in the net debt the lease liabilities, the loans and financing (including debentures) less cash and cash equivalents, restricted cash, short and long-term investments, sublease receivables, deposits and current and non-current restricted investments. The Company’s capital structure is comprised of its net indebtedness defined as total loans and financing (including debentures) and operating leases net of cash and cash equivalents, restricted cash and others financial instruments. Capital is defined as equity and net indebtedness. Under IFRS 16, at the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. During the fouth quarter 2019, the Company took delivery of thirteen aircraft under operating leases, increasing the ‘Lease liabilities’ by R$2,124,722. Although the liability is recognized in the balance sheet from delivery date, these aircraft generated nearly no Operating income (loss) during the quarter, as aircraft are required to go through certification and tests before joining the operating fleet of the Company. The Company is not subject to any externally imposed capital requirements. The total capital as total net equity and net debt as detailed below: December 31, 2019 2018 (Restated) Equity (3,519,174 ) (1,150,038 ) Cash and cash equivalents (Note 6) (1,647,880 ) (1,169,136 ) Short-term investments (Note 7) (62,009 ) (517,423 ) Long-term investments (Note 24 (1,397,699 ) (1,287,781 ) Sublease receivable (Nota 9) (279,504 ) (361,738 ) Security deposits and maintenance reserves (Note 13) (1,651,533 ) (1,546,720 ) Loans and financing (Note 17) 3,518,156 2,756,126 Lease liabilities (Note 1 8 12,106,621 8,919,746 Net debt 10,586,152 6,793,074 Total capital 7,066,978 5,643,036 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2019 | |
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Cash and cash equivalents | 6. Cash and cash equivalents Cash and cash equivalents are comprised of the following: December 31, 2019 2018 Cash and bank deposits 308,958 370,262 Cash equivalents Bank Deposit Certificate – CDB 1,317,388 480,052 Investments funds 21,534 318,822 1,647,880 1,169,136 The balances of cash and bank deposits represent amounts deposited in checking accounts with Brazilian and offshore banks. The CDB investments are indexed to the Brazilian Interbank Deposit Certificate (“CDI”) and are repayable on demand. Investment funds are comprised of CDBs and repurchase agreements, denominated in Reais, with financial institutions (deposit certificates). Cash equivalents investments are classified as financial assets at fair value through profit or loss. |
Short term investments
Short term investments | 12 Months Ended |
Dec. 31, 2019 | |
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Short term investments | 7. Short term investments Investments are comprised of: December 31, 2019 2018 Other short-term investments 21,243 16,039 Investment funds 40,766 501,384 62,009 517,423 Investment funds are comprised of Brazilian government bonds and bank notes, denominated in Reais, with financial institutions (deposit certificates) and debentures issued by B and BB+ risk rated companies bearing an accumulated average interest rate of 100% of CDI – Interbank Deposit Certificate rate. Brazilian government bonds are comprised of National Treasury Bills (“LTN”), National Financial Bills (“LFT”) and National Treasury Notes (“NTN”). Short-term investments are classified as financial assets at fair value through profit or loss. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2019 | |
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Trade and other receivables | 8. Trade and other receivable s December 31, 2019 2018 Trade and other receivables with customers 1,142,704 1,039,373 Trade and other receivables with others 37,878 42,406 1,180,582 1,081,779 Allowance for doubtful accounts (14,716 ) (12,723 ) 1,165,866 1,069,056 The changes in the allowance for doubtful accounts are as follows : December 31, 2019 2018 Balance at the beginning of the year 12,723 6,925 Increases 5,532 7,505 Reversals (3,539 ) (1,707 ) Balance at the end of the year 14,716 12,723 The schedule of accounts receivables are as follows: December 31, 2019 2018 Not yet due 1,151,963 1,025,211 Up to 90 days 13,903 43,845 Over 91 days 14,716 12,723 1,180,582 1,081,779 Accounts receivable from credit card companies are received in installments of up to twelve months. Installment receivables which are due more than 60 days amounted to R$495,707 at December 31, 2019 (December 31, 2018 – R$691,839). Average days-sales-outstanding was 31 days for the year ended December 31, 2019 (December 31, 2018 - 37 days). Generally, interest is charged on sales receivable in installments with more than six and ten months for domestic and international flights, respectively. The Company enters into factoring transactions with banks or credit card management companies, in order to obtain funds for working capital. During the year ended December 31, 2019 the Company factored accounts receivable from credit cards with a face value of R$3,247,722 (December 31, 2018 - R$2,553,188). Because these receivables are from credit card companies and present a low credit risk, we were able to sell these receivables without any risk to the Company in the event of default by the customers. As such, the accounts receivable were derecognized in full and the discount interest cost recognized in the statement of net income (loss), under financial expenses, for an amount of R$6,449 for the year ended December 31, 2019 (December 31, 2018 - R$10,414). |
Aircraft sublease receivables
Aircraft sublease receivables | 12 Months Ended |
Dec. 31, 2019 | |
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Aircraft sublease receivables | 9. Aircraft sublease receivables The Company subleased fifteen aircraft to TAP and the amounts receivable are due as follows: December 31, 2019 2018 2019 — 102,660 2020 98,152 102,660 2021 86,657 91,908 2022 47,136 48,897 2023 44,154 42,446 After 2023 64,742 62,237 Lease receivables (gross) 340,841 450,808 Finance revenue (accrued) (61,337 ) (89,070 ) Lease receivables (net) 279,504 361,738 Current 75,052 73,671 Non-current 204,452 288,067 As December 31, 2019 and 2018, there were no overdue amounts related to aircraft subleases receivables. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
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Inventories | 10. Inventories December 31, 2019 2018 Parts and maintenance materials 288,824 206,729 Catering and uniforms 5,768 9,351 Inventory provision (*) (33,727 ) (15,935 ) 260,865 200,145 (*) As of December 31, 2019, the amount of R$27,999 refers to the provision related to the acceleration of the fleet transformation. |
Prepaid expenses
Prepaid expenses | 12 Months Ended |
Dec. 31, 2019 | |
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Prepaid expenses | 11. Prepaid expenses December 31, 2019 2018 (Restated) Insurance premium 47,506 33,385 Aircraft and engine leases 39,989 28,234 Guarantee commission 16,332 20,682 Other 57,792 54,835 161,619 137,136 Current 139,403 115,453 Non-current 22,216 21,683 |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2019 | |
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Related parties | 12. Related parties a) Compensation of key management personnel Key management personnel include board of director members, officers and executive committee members. The compensation paid or payable to officers and directors services is as follows: For the year ended December 31, 2019 2018 201 7 Salaries and wages 22,187 16,275 17,377 Bonus 7,255 7,263 6,724 Share-based option plans 29,129 21,508 24,775 58,571 45,046 48,876 b) Guarantees granted The Company granted guarantees for some property rental agreements entered into by executive officers. The amounts involved are not material. c Maintenance agreements ALAB entered into Maintenance Agreements to aircraft with TAP Manutenção e Engenharia Brasil S/A (“TAP ME”). TAP ME is part of the same economic group as TAP. The total value of maintenance services acquired by the Company pursuant to such Maintenance Agreements during the year ended December 31, 2019 was R$17,552 (December 31, 2018 – R$83,831 and December 31, 2017 – R$83,295). As of December 31, 201 9 d) Codeshare Agreement ALAB signed a codeshare agreement with United (a shareholder) and TAP which will provide transport of passengers whose tickets have been issued by one of the airlines and the service is performed by the other. e) Transactions with Aigle Azur On December 31, 2019, the Company recorded in “Prepaid expenses” and “Trade and other receivables”, the amount of R$11,794 (December 31, 2018 – R$13,330 and December 31, 2017 - 0), net of a provision for doubtful debts of R$5,055 (December 31, 2018 and 2017 – R$0). f) Loan agreements receivable On September 2, 2016 the Company entered into a loan agreement with a shareholder . (December 31, 2018 – R$ 12,042). This agreement bears interest at a rate of Libor plus 2.3% p.a. The term of the contract has been extended and will be paid in full in 2 020. g) Transactions with Breeze In December 2019, the Company signed a letter of intent for the sublease of up to 28 aircraft to the Breeze Aviation Group, an airline founded by Azul’s controlling partner. The transaction was approved by Azul’s shareholders at an Extraordinary General Meeting on March 2, 2020. In 2019 there were no financial flows related to the transaction. h) Transactions with TAP i. Aircraft sublease In March 2016, the Company subleased fifteen aircraft to its related party TAP. Seven of the fifteen leases had been executed at a time when the market for regional aircraft was higher than when the related seven subleases were executed. As a result, although the Company believes that the rates in these seven subleases represented approximate market rates at the time of their execution, the Company will receive from TAP an amount lower than the amount that the Company has to pay under the related leases. As mentioned in note 3, in accordance with IFRS 16 , As a result of this change, the Company reassessed the classification of its sublease agreements as finance leases, based on the remaining term and conditions of the head lease and sublease on the date of the initial adoption, thus derecognizing part of the provision for onerous contracts. Over the year ended December 31, 2019, amounts received from TAP from the subleases amounted to R$126,149 (December 31, 2018 – R$112,046 and December 31, 2017 – R$113,391), and amounts paid to the lessors of the related aircrafts totaled R$ and December 31, 2017 – R$138,042). ii. TAP Convertible Bonds On March 14, 2016, the Company acquired series A convertible bonds issued by TAP (the “TAP Convertible Bonds”) for an amount of €90 million. The TAP Convertible Bonds are convertible, in whole or in part, at the option of Azul into new shares representing the share capital of TAP benefiting from enhanced preferential economic rights (the “TAP Shares”). Upon full conversion, the TAP Shares will represent 6.0% of the total and voting capital of TAP, with the right to receive dividends or other distributions corresponding to 41.25% of distributable profits of TAP. The option is exercisable starting in July 2016. The TAP Convertible Bonds mature 10 years from their issuance and bear interest at an annual rate of 3.75% until September 20, 2016 and at rate of 7.5% thereafter. Accrued interest remains unpaid until the earlier of the maturity date or early redemption of the Bonds. TAP has the right to early redeem the TAP Convertible Bonds if not yet converted and upon the earlier of (i) occurrence of an IPO, or (ii) 4 years from issuance of the TAP Convertible Bonds provided that TAP should be in compliance with certain financial covenants. The TAP Convertible Bonds will be redeemed at their principal amount together with the accrued unpaid interest. The TAP Convertible Bonds, as well as the option to convert them into TAP Shares, were classified as a single financial asset recorded at changes in the fair value through profit or loss, in the amount of R$61,675 (Note 24) under “Result from related parties transactions, net”, classified in “Long-term investments”. iii. Other Investments On March 14, 2019, ALAB acquired 6.1% post-dilution economic shares in TAP from Hainan Airlines Civil Aviation Investment Limited (“HACAIL”) On July 1, 2019 HACAIL transferred the shares held in The investment is recognized at fair value in the balance sheet under “Long term investments”. On December 31, 2019 the gain resulting from this transaction, in the amount of R$64,710, was fully recorded at fair value through profit or loss, under “Result from related parties transations, net”. i) Service Agreements with Águia Branca Participações S.A. On January 1, 2013, we entered into an agreement with Águia Branca Participações S.A., one of our shareholders, for the sharing of information technology resources during an indefinite period, which was an extension of a similar agreement that TRIP entered into with Águia Branca Participações S.A., and on November 1, 2015, we entered into a services agreement with Águia Branca Participações S.A. for the hosting and use of information technology resources for a 24 month term, which has been renewed for an additional 12 month term. The amounts payable under these agreements are based on the services actually rendered. We paid R$50,118, R$49,900 and R$46,500 in connection with these agreements in 2019, 2018 and 2017, respectively. j) Air Tickets Sales Agreement with Caprioli Turismo Ltda. On March 26, 2018, we entered into a Tickets Sales Agreement with Caprioli Turismo Ltda., a travel agency owned by the Caprioli family (which owns an indirect participation in us through the TRIP’s former shareholders), pursuant to which we granted Caprioli Turismo Ltda. a credit line of R$20,000.00 to purchase for resale tickets for the flights we operate. Such credit line is guaranteed by a promissory note, which does not bear interest, of the same amount payable to us. k) Consulting Services Agreement with Plane View Partners On April 16, 2020, our board of directors approved the hiring of Plane View Partners, an aviation consulting firm founded by one of our Board members, to support our fleet plan strategy and engage with aircraft manufacturers and lessors. |
Security deposits and maintenan
Security deposits and maintenance reserves | 12 Months Ended |
Dec. 31, 2019 | |
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Security deposits and maintenance reserves | 13. Security deposits and maintenance reserves December 31, 2019 2018 Security deposits 152,635 225,230 Maintenance reserve deposits 1,498,898 1,321,490 1,651,533 1,546,720 Current assets 258,212 144,192 No n 1,393,321 1,402,528 Security deposits and maintenance reserve deposits are denominated in US dollars and adjusted for changes to foreign exchange rates. Security deposits are related to aircraft lease contracts and will be refunded to the Company when the aircraft is returned at the end of the lease agreement. Maintenance reserve deposits are paid under certain aircraft leases to be held as collateral in advance of the performance of major maintenance activities and are reimbursable upon completion of the related maintenance event, under certain conditions. The Company recognized a write-off The Company replaced some of its security deposits and maintenance reserves deposits with bank guarantees, and was refunded an amount of R$100,136 and R$76,931, respectively as of December 31, 2019 (December 31, 2018 - R$18,125 and R$106,875 respectively). Presented below are the changes in the security deposits and maintenance reserve deposits balance: Maintenance reserves Security deposits Total Balance at December 31, 2017 1,078,135 180,992 1,259,127 Additions 317,698 39,593 357,291 Write-offs (31,132 ) (968 ) (32,100 ) Refunds/returns (236,987 ) (23,175 ) (260,162 ) Foreign exchanges variations 193,776 28,788 222,564 Balance at December 31, 2018 1,321,490 225,230 1,546,720 Additions 343,727 37,614 381,341 Write-offs (8,417 ) — (8,417 ) Refunds/returns (210,356 ) (113,137 ) (323,493 ) Foreign exchanges variations 52,454 2,928 55,382 Balance at December 31, 2019 1,498,898 152,635 1,651,533 Current assets 258,212 — 258,212 Non current assets 1,240,686 152,635 1,393,321 |
Property, equipment and right o
Property, equipment and right of the use assets | 12 Months Ended |
Dec. 31, 2019 | |
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Property, equipment and right of the use assets | 14. Property, equipment and right of the use assets Property and equipment and right-of-use assets are mainly comprised of aircraft, engines and aircraft equipment. As a result of the annual impairment analysis, the Company recorded impairment of non-current In addition, one aircraft has been classified as held for sale as its carrying amount will be recovered principally through sale rather than through continuing use. The aircraft is available for immediate sale at its present condition and the sale is highly probable. The fair value less costs to sell the aircraft was estimated to be lower than the carrying amount and an impairment loss of R$16,325 has been recognized. The impaired carrying amount has been transferred to the “assets held for sale” line on the balance sheet. 14.1 Property and equipments During the year ended December 31, 2019, the Company entered into a sale and leaseback transaction on an owned engine. The gain associated with this transaction, which resulted in R$6,260 and was recognized in “Other operating expenses, net”. During the year ended December 31, 2019, the Company sold on e During the year ended December 31, 2018, the Company entered into a sale and leaseback transaction on an owned engine. The loss associated with the sale and leaseback transactions amounted to R$6,570 and was recorded on “Other operating expenses, net”. During the year ended December 31, 2018, the Company entered into seven aircraft sale transactions resulting in a net loss of R$144,251, recognized in “Other operating expenses, net”. a) Breakdown December 31, 2019 December 31, 2018 (Restated) Cost Accumulated Net Net amount Leasehold improvements 296,728 (78,131 ) 218,597 93,285 Equipment and facilities 176,814 (106,235 ) 70,579 49,243 Vehicles 3,614 (1,535 ) 2,079 2,207 Furniture and fixtures 20,683 (15,119 ) 5,564 5,029 Aircraft equipment 1,856,138 (941,533 ) 914,605 1,039,473 Aircraft and engines 850,391 (349,392 ) 500,999 459,056 Advance payments for acquisition of aircraft 84,578 — 84,578 112,923 Construction in progress 171,839 — 171,839 81,023 3,460,785 (1,491,945 ) 1,968,840 1,842,239 b) Changes in property and equipment balances are as follows Cost December 31, (Restated) Acquisitions Disposals/ Write-offs Transfers December 31, Leasehold improvements 146,315 124,181 (3,118 ) 29,350 296,728 Equipment and facilities 130,655 48,101 (2,091 ) 149 176,814 Vehicles 3,238 376 — — 3,614 Furniture and fixtures 18,797 1,891 (5 ) — 20,683 Aircraft equipment 1,378,352 566,152 (72,835 ) (15,531 ) 1,856,138 Aircraft and engines 629,473 146,527 (149,910 ) 224,301 850,391 Advance payments for acquisition of aircraft 112,923 55,649 (45,081 ) (38,913 ) 84,578 Construction in progress 81,023 319,275 — (228,459 ) 171,839 2,500,776 1,262,152 (273,040 ) (29,103 ) 3,460,785 Accumulated depreciation December 31, (Restated) Depreciation Disposals/ Write- Transfers Impairment December 31, Leasehold improvements (53,030 ) (25,157 ) 186 — (130 ) (78,131 ) Equipment and facilities (81,412 ) (17,265 ) 687 — (8,245 ) (106,235 ) Vehicles (1,031 ) (504 ) — — — (1,535 ) Furniture and fixtures (13,768 ) (1,356 ) 5 — — (15,119 ) Aircraft equipment (338,879 ) (143,550 ) 42,249 — (501,353 ) (941,533 ) Aircraft and engines (170,417 ) (33,822 ) 32,295 — (177,448 ) (349,392 ) (658,537 ) (221,654 ) 75,422 — (687,176 ) (1,491,945 ) 14.2 Right of use – aircraft lease and others a) Breakdown December 31, 2019 December 31, 2018 (Restated) Cost Accumulated Net Net Amount Aircraft of operating lease 10,901,791 (4,619,858 ) 6,281,933 3,617,062 Aircraft of finance lease 1,169,636 (916,173 ) 253,463 924,272 Engines and simulators 484,597 (235,495 ) 249,102 143,829 Properties 114,167 (64,042 ) 50,125 54,150 Vehicles 10,238 (7,127 ) 3,111 2,521 Equipments 20,088 (15,584 ) 4,502 12,994 Transports 12,065 (12,065 ) — — Restoration of aircraft and engines 423,194 (178,020 ) 245,176 171,498 13,135,776 (6,048,364 ) 7,087,412 4,926,326 b) Changes in right of use assets balances Cost December 31, (Restated ) Acquisitions Disposals/ Write-offs Transfers December 31, Aircraft of operating lease 6,943,314 4,002,981 (42,570 ) (1,934 ) 10,901,791 Aircraft of finance lease 1,289,161 28,455 (75,623 ) (72,357 ) 1,169,636 Engines and simulators 336,731 147,866 — — 484,597 Properties 105,754 8,413 — — 114,167 Vehicles 7,999 2,239 — — 10,238 Equipments 20,767 171 (850 ) — 20,088 Transports — 12,065 — — 12,065 Restoration of aircraft and engines 283,542 139,652 — — 423,194 8,987,268 4,341,842 (119.043 ) (74,291 ) 13,135,776 Accumulated depreciation December 31, (Restated) Depreciations Disposals/ Write-offs Impairment Transfers December 31, Aircraft of operating lease (3,326,252 ) (875,170 ) 42,570 (461,006 ) — (4,619,858 ) Aircraft of finance lease (364,891 ) (52,848 ) 10,019 (536,341 ) 27,888 (916,173 ) Engines and simulators (192,902 ) (38,723 ) — (3,870 ) — (235,495 ) Properties (51,604 ) (12,438 ) — — — (64,042 ) Vehicles (5,478 ) (1,649 ) — — — (7,127 ) Equipments (7,773 ) (8,427 ) 616 — — (15,584 ) Transports — (12,065 ) — — — (12,065 ) Restoration of aircraft and engines (112,043 ) (33,503 ) — (32,474 ) — (178,020 ) (4,060,943 ) (1,034.823 ) 53,205 (1,033,691 ) 27,888 (6,048,364 ) 14.3 Right of use – maintenance a) Breakdown December 31, 2019 December 31, (Restated) Cost Accumulated Net Amount Net Amount Checks 201,712 (153,522 ) 48,190 73,977 Checks in progress 23,662 — 23,662 — Engines maintenance 1,149,551 (724,012 ) 425,539 558,923 1,374,925 (877,534 ) 497,391 632,900 b) Changes in right of use maintenance balances Cost December 31, (Restated) Acquisitions Disposals/ Write-offs Transfers December 31, Checks 143,866 63,493 (9,971 ) 4,324 201,712 Checks in progress — 45,527 (10,546 ) (11,319 ) 23,662 Engines maintenance 779,651 425,482 (67,585 ) 12,003 1,149,551 923,517 534,502 (88,102 ) 5,008 1,374,925 Accumulated Depreciation December 31, (Restated) Accumulated Disposals/ Write-offs Transfers Impairment December 31, 2019 Checks (69,889 ) (49,313 ) 3,101 — (37,421 ) (153,522 ) Engines maintenance (220,728 ) (255,043 ) 42,003 — (290,244 ) (724,012 ) (290,617 ) (304,356 ) 45,104 — (327,665 ) (877,534 ) |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Goodwill and intangible assets | 15. Intangible assets a) Breakdown December 31, 2019 December 31, Cost Accumulated Net amount Net amount Goodwill (i) 753,502 — 753,502 753,502 Airport operating licenses (ii) 82,196 — 82,196 82,196 Software 489,904 (238,118 ) 251,786 180,858 1,325,602 (238,118 ) 1,087,484 1,016,556 b) Changes in intangible assets balances are as follows Costs December 31, Acquisitions Disposals/ Written-off Transfers December 31, Goodwill (i) 753,502 — — — 753.502 Airport operating licenses (ii) 82,196 — — — 82,196 Software 357,457 132,447 — — 489,904 1,193,155 132,447 — — 1,325,602 Accumulated amortization December 31, Amortization Disposals/ Written-off Transfers December 31, Software (176,599 ) (61,519 ) — — (238,118 ) (176,599 ) (61,519 ) — — (238,118 ) (i) Refers to goodwill recorded in the acquisition of TudoAzul (former TRIP) in 2012. The amount of R$753,502 represents the excess of the consideration transferred over the fair value of the net assets acquired and liabilities assumed. (ii) As part of the purchase price allocation of TudoAzul (former TRIP) acquisition, the Company recognized a separate intangible asset for the airport operating licenses. These intangible assets were deemed to have an indefinite life. Impairment of goodwill and Airport operating licenses The Company performed its annual impairment tests as of December 31, 2019. The Company assessed that the most appropriate method for estimating the recoverable amount of the Company’s single CGU (cash-generating unit) is by using the income approach through the discounted cash flows method, resulting in the value in use. In order to determine the book value of the CGU, the Company adds the intangible assets recorded, given that it will only generate economic benefits by using the combination of both. The assumptions used in the impairment tests of goodwill and other intangible assets are consistent with the Company’s operating plans and internal projections over a five-year period, and for longer periods the Company assumed growth rate in perpetuity. These assumptions are both reviewed and approved by m The Company took into consideration the following assumptions: • Fleet and capacity • Passenger revenue • Operational costs • Investment needs The Company also considered forecasted market variables such as GDP (source: Central Bank of Brazil), the U.S. Dollar to Brazilian reais exchange rate (source: Central Bank of Brazil), the price of a barrel of kerosene (source: Bloomberg) and interest rates (source: Bloomberg). The Company prepared a sensitivity analysis considering the variations in the Earnings Before Interest and Tax (“EBIT”) margin and the nominal discount rate as shown below: Variations Appreciation (depreciation) 1.0 % 0.0 % -1.0 % Discount rate before taxes 9.8 % 8.8 % 7.8 % EBIT -9.5 % -10.5 % -11.5 % The result of the impairment test, which includes a sensitivity analysis of the main variables, showed that the estimated recoverable amount is higher than carrying value of net assets allocated to the cash generating unit, and therefore no impairment was recognized as of December 31, 2019. |
Income tax and social contribut
Income tax and social contribution | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Income tax and social contribution | 16. Income tax and social contribution a) Income tax and social contribution For the year ended December 31, 2019 2018 (Restated) 2017 (Restated) Loss before income tax and social contribution (2,536,265 ) (452,926 ) 414,129 Combined tax rate 34 % 34 % 34 % Income tax and social contribution statutory rate 862,330 153,995 (140,804 ) Adjustments to calculate the effective tax rate: Taxable profit on foreign subsidiaries (3,020 ) (21,867 ) (13,496 ) Exchange differences on foreign subsidiaries (7,321 ) 24,917 27,064 Unrecorded deferred tax on tax loss and on temporary differences (880,375 ) (400,187 ) 56,598 Deferred income tax on tax losses included in the PERT (*) 84,712 — 83,143 Permanent differences 76,958 65,971 (8,006 ) Other (105 ) (5,634 ) 5,885 Total income tax and social contribution expenses 133,179 (182,805 ) 10,384 Current income tax and social contribution (2,228 ) (11,224 ) 2,875 Deferred income tax and social contribution 135,407 (171,581 ) 7,509 133,179 (182,805 ) 10,384 (*) Tax Recovery Program (“PERT”) b) Breakdown of deferred income tax and social contribution December 31, 2019 2018 (Restated) Deferred taxes On temporary differences Provision for tax, civil and labor risks 21,819 27,524 Deferred revenue of TudoAzul program (148,963 ) (132,740 ) Aircraft lease expense 1,312,552 1,371,421 Depreciation of aircraft and engines (48,899 ) (33,973 ) Exchange rate (16,498 ) (13,397 ) Deferred gain related to aircraft sold 19,747 37,628 Cash flow hedge 53,977 52,349 Fair value of TAP convertible bonds (243,288 ) (274,520 ) Fair value of other investments (21,963 ) — Other provisions 116,810 — Financial instruments (201,738 ) (73,735 ) Impairment 989,242 — Fair value of aircraft — (397 ) Fair value of slots — (27,947 ) Other on business combination fair value adjustment — (2,707 ) Others 73,497 61,993 Net deferred tax (liabilities) 1,906,297 991,500 Net deferred tax assets / (liabilities) on temporary adjustments recognized (259,785 ) (311,391 ) Deferred tax assets recognized on net operating losses 17,270 18,180 Net deferred tax assets / (liabilities) – recognized (242,516 ) (293,211 ) The Company offsets tax assets and liabilities only when Deferred tax assets are recognized only to the extent that recovery is probable. As of December 31, 2019 the Company has recognized the amount of R$259,785. The Company has income tax losses that are available indefinitely for offsetting against future taxable profits, as follows: December 31, 2019 2018 Net tax losses 1,971,779 1,829,244 Income tax loss carryforwards (25%) 492,945 457,311 Social contribution negative base tax carryforwards (9%) 177,460 164,632 Deferred income tax asset on tax losses at the amount of R$670,405 has not been recognized as there is no evidence of recoverability in the near future, except for R$17,270. |
Loans and financing
Loans and financing | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Loans and financing | 17. Loans and financing December 31 2019 2018 (Restated) Loans 2,825,749 2,025,607 Debentures 692,407 730,519 3,518,156 2,756,126 Current 481,227 158,813 Non-current 3,036,929 2,597,313 Interest-bearing loans, financing and debentures are measured at amortized cost, using the effective interest rate method. 17.1. Loans Loans Fair value of designated December 31, December 31, Guarantees Interest Final 2019 2018 (Restated) 2019 2018 (Restated) Denominated in foreign currency - US$ Aircraft and engine acquisition Chattel mortgage LIBOR plus “spread” between 2.55% and 3.6% p.a. and fixed interest between 5.37% and 6.07%/ US Treasury + 3,25% p.a. 03/2029 896,232 100,042 (10,971 ) — Working capital (*) (a) Receivables of Azul and no guarantees LIBOR plus fixed interest of 0.88% p.a. and fixed of 5.90%p.a 10/2024 1,727,882 1,656,947 (303,507 ) (266,404 ) Denominated in local currency - R$ Aircraft and engine acquisition (FINAME) (**) Investments and chattel mortgage of aircraft Fixed between 6.00% to 6.50% p.a. and SELIC plus 5.46% p.a. 05/2025 164,280 192,861 (3,309 ) — Working capital Bail letter 5.0% fixed p.a and 125% to 126% of CDI 07/2021 37,355 73,376 — — Finance lease Chattel mortgage CDI plus fixed spread between 3.97% p.a. and 4.91% p.a. 11/2019 — 2,381 — — Total in R$ 2,825,749 2,025,607 (317,787 ) (266,404 ) Current position 233,487 119,676 — — Non-current 2,592,262 1,905,931 (317,787 ) (266,404 ) (*) Ilustrates the effect of hedges designated for hedge accounting, which are detailed in Note 2 4 (**) FINAME are a special credit line from BNDES (the Brazilian development bank). a) Senior notes The Company issued US$400 million in unsecured senior notes in October 2017 at 5.875% per year and maturity on October 26, 2024. Interest on the notes will be payable semi-annually in arrears on April 26 and October 26 of each year, beginning on April 26, 2018. On December 14, 2017, the total amount referring to the Senior Notes was exchanged from Dollars to Reais by means of swap derivative contracts and exchange options to protect interest expenses, and through exchange options to protect the principal amount. As a result of the implementation of this hedge structure, on April 1, 2018, the Senior Notes are protected against foreign currency fluctuations, up to an exchange rate of R$4.7500 for US$1.00, and above this level will be exposed only to the difference between the effective exchange rate and R$ 4.7500. In addition, the Company will benefit from any upside from the devaluation of the Brazilian real in case the exchange rate is bellow R$3.2865 for US$1.00. The options were financed, yielding a total hedg ed of debt o f The result of the hedge recognized in the “Derivative financial instruments” asset and liability line itens and the consolidated debt position including the effect of the hedge is detailed in note 5. The details of this transaction is following: Options Structure Coupon Payments Principal Payment Period Apr/2018 to Apr/2019 Oct/2019 to Oct/2024 Oct/2024 Notional US$12 million US$12 million US$400 million Put option bought — 3.2865 N/A Call option bought N/A N/A 3.2865 Call option sold — 4.7500 4.7500 Senior notes Swap Currency US$ R$ Amount US$400 million R$1,314,600 Interest Fixed Floating Interest rate 5.875% 99.3% of CDI b) Long term loans mature as follows: December 31, 2019 2018 (Restated) 2020 — 191,437 2021 202,798 59,875 2022 270,899 49,560 2023 258,422 37,016 After 2023 1,860,143 1,568,043 2,592,262 1,905,931 c) The following assets serve as guarantees to secure the financing agreements December 31, 2019 2018 (Restated) E used as collateral (Note 14) 7,285,497 5,144,219 d) The undrawn borrowing facilities available in the future for setting capital commitments amounted R$198,714 as of December 31, 2019. Facilities are available exclusively for the funding of Embraer E195 jets engine maintenance costs. 17.2. Debentures Guarantees Interest Final December 31, 2019 2018 Eight issue Credit cards receivable CDI + 1.50% p.a. 01/2019 — 40,758 Nine issue Credit cards receivable 122% of CDI 12/2021 495,548 493,990 Tenth issue Credit cards receivable 117% of CDI 12/2023 196,859 195,771 Total 692,407 730,519 Current position 247,740 39,137 Non-current 444,667 691,382 Long term debentures mature as follows: December 31, 2019 2018 2020 — 296,338 2021 336,580 296,777 2022 89,044 49,131 2023 19,043 49,136 444,667 691,382 17.3 Covenants As of December 31, 2019 the Company had an outstanding balance of R$1,366,842 in “loans and financing” subject to financial covenants related to leverage and debt coverage ratios. Covenants relate to Ratios measured Ratios measured 9 th (i) adjusted debt coverage ratio (ICSD) equal or higher to 1.2; and (ii) leverage ratio equal or lower than 6.5. Annually 10 th Aircraft financing (i) adjusted debt coverage ratio (ICSD) equal or higher to 1.2; and (ii) leverage ratio equal or lower than 5.5. Quarterly As of December 31, 2019 the Company was in compliance with all the covenants related to financial transactions. |
Lease liabilities
Lease liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Lease liabilities [Abstract] | |
Lease liabilities | 18. Lease liabilities December 31, 2019 2018 (Restated) Aircraft 11,686,481 8,582,974 Engine and simulators 347,911 254,227 Property 60,648 65,151 Vehicles 7,615 14,668 Equipments 3,089 2,726 Transports 877 — 12,106,621 8,919,746 Current liability 1,585,233 1,237,909 Non-current 10,521,388 7,681,837 The Company entered into sublease transactions of 15 aircraft with TAP and of December 31, 2019 has recorded in “Aircraft sublease receivable” the amount of R$279,504 (December 31, 2018 - R$361,738) (Note 9). The movement schedule for lease liabilities are as follows: Weighted December 31, (Restated) Additions Payments Interest Disposals Foreign December 31, Right - - Aircraft and engines 8.20 % 7,725,397 4,153,314 (1,865,472 ) 726,613 (24,775 ) 331,057 11,046,134 Others 7.64 % 82,545 22,888 (39,008 ) 8,628 (279 ) (2,544 ) 72,230 Right - - 6.15 % 1,111,804 32,188 (269,988 ) 70,767 — 43,486 988,257 Total 8,919,746 4,208,390 (2,174,468 ) 806,008 (25,054 ) 371,999 12,106,621 The leases have an average repayment (in years) are as follows: December 31, 2019 2018 (Restated) Aircraft and engines Right-of-use leases without purchase option 8.26 7.33 Right-of-use leases with purchase option 4.24 5.22 The future minimum payments and the present value of the minimum leas e December 31, 2019 2018 2019 — 1,957,371 2020 2,481,457 1,828,394 2021 2,335,363 1,726,072 2022 2,406,701 1,798,733 2023 1,875,308 1,293,654 2024 1,560,055 992,525 After 2024 5,580,166 2,324,962 Minimum lease payments 16,239,050 11,921,711 Financial expenses (4,132,429 ) (3,001,965 ) Net present value of minimum lease payments 12,106,621 8,919,746 The following are the amounts recognized in statement of net income (loss): Consolidated 2019 2018 (Restated) 2017 (Restated) Depreciation expense of right-of-use assets (1,034,823 ) (973,084 ) (790,737 ) Interest expense on lease liabilities (806,008 ) (625,906 ) (556,781 ) Finance income on lease receivalbes 29,695 33,129 33,467 Expense relating to short-term leases (79,855 ) (34,434 ) (35,619 ) Total amount recognized (1,890,991 ) (1,600,295 ) (1,349,670 ) Some finance leases were designated as a cash flow hedge object. The Company used interest rate swaps to convert the post-fixed rate Libor into a fixed-rate exposure, hedging the volatility of future cash flow. Interest rate swaps have the same maturity and common terms as the financ e |
Accounts payable
Accounts payable | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Accounts payable | 19. Accounts payable December 31, 2019 2018 Local currency 1,202,166 994,662 Foreign currency 424,411 455,777 1,626,577 1,450,439 |
Air traffic liability
Air traffic liability | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Air traffic liability | 20 Air traffic liability is comprised of the following: December 31, 2019 2018 Advance ticket sales 1,408,272 1,099,978 TudoAzul program 685,982 572,474 2,094,254 1,672,452 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Provision | 2 1 Return of Provision for Provision for Total Balance at December 31, 2017 479,957 73,198 — 553,155 Provisions recognized 44,199 70,438 — 171,701 Utilized provisions — (62,653 ) — (62,653 ) Amortization of financial expense 57,064 — — 57,064 Foreign exchanges variations 87,821 — — 87,821 Balance at December 31, 2018 (Restated) 669,041 80,983 — 750,024 Provisions recognized 139,652 100,241 1,129,866 1,369,759 Utilized provisions (333,420 ) (93,718 ) — (427,138 ) Amortization of financial expense 67,366 — 18,633 85,999 Foreign exchanges variations 28,036 — 6,672 34,708 Balance of December 31, 2019 570,675 87,506 1,155,171 1,813,352 Current 68,888 — 254,553 323,441 Non-current 501,787 87,506 900,618 1,489,911 2 1 1 . The provision for the return of aircraft and engines is based on the estimated future costs to be incurred in order to meet the contractual conditions for the return of engines and aircraft maintained under an operating leas e 2 1 . The Company is party to certain labor, civil and tax lawsuits for which appeals have been filed. Based on the Company’s external and internal legal counsels’ opinion, m These provisions are as follows: December 31, 2019 2018 Taxes 2,024 1,962 Civil 45,067 44,960 Labor 40,415 34,061 87,506 80,983 The total amount of claims, which according to management represent losses that are reasonably possible but not probable, for which no provision was recorded are as follow: December 31, 2019 2018 Taxes 116,074 87,384 Civil 77,360 43,203 Labor 123,119 135,311 316,553 265,898 a) Tax proceedings: on imports of aircraft and engines, in accordance with the provisions of Law 10,865/04, the application of COFINS at a zero rate for imports of aircraft and parts. Management believes that the risk of loss is possible and therefore no provision was recorded for such amounts. b) Civil lawsuits: The Company is party to various types of civil lawsuits for compensation claims in relation to flight delays, cancellations of flights, luggage and damage loss, amongst others. c) Labor lawsuits The Company is party to various types of labor lawsuits related to overtime, additional remuneration for undertaking hazardous activities, safety related payments, amongst others. The Labor Prosecution’s Office filed on February 22, 2017 a lawsuit against the Company claiming that it had violated certain labor regulations, including limitations on daily working hours and rest periods. The claim totals approximately R$66,000 in punitive damages. The lawsuit is currently waiting for hearing and the Company is negotiating an agreement. The Company classifies the likelihood of loss as possible. 2 1 Provision for impairment charge recognized in 2019 that exceeds assets net book value in relation to onerous contracts (Note 1). |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Equity | 22. Equity a) Issued capital and authorized shares, all registered and without par value Company’s capital is - R$ Common Preferred At December 31, 2019 2,243,215 928,965,058 329,568,166 At December 31, 2018 2,209,415 928,965,058 326,631,190 Each common share entitles its holder to 1 (one) vote in the General Shareholders’ Meeting. Preferred shares of any class are not entitled to vote. Preferred shares have: i) priority of reimbursement of capital upon liquidation; ii) the right to be included in a public offering of the Company for a purchase of shares upon transfer of the Company’s control for the same conditions as the common shareholders and for a price per share equivalent to seventy-five (75) times the price per share paid to the controlling shareholder; iii) in case of the Company’s liquidation, the right to receive amounts equivalent to seventy-five (75) times the price per common share upon splitting of the remaining assets among the shareholders; and iv) the right to receive dividends in an amount equivalent to seventy-five (75) times the price paid per common share. Issuance of shares and issued capital During the year ended December 31, 2019, the Company issued 2,936,976 preferred shares (December 31, 2018 – 4,877,470) in the amount of R$33,800 (December 31, 2018 – R$46,038) in connection with the exercise of stock options. b) Capital reserve The share-based payment reserve is used to recognize the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their compensation. For the year ended December 31, 2019, the Company recognized compensation expense for an amount of R$18,894 (December 31, 2018 – R$22,930 and December 31, 2017 – R$29,889). c) Dividends According to the by-laws Interest paid on equity, which is deductible for income tax purposes, may be deducted from the minimum mandatory dividends to the extent that it has been paid or credited. Interest paid on equity is treated as dividend payments for accounting purposes. The Company has not distributed dividends for the year ended on exercice ended on December 31, 2019 , 2018 d) Other comprehensive loss Changes in fair value of derivative instruments designated as cash flow hedges are recognized in other comprehensive loss, net of tax effects, for a loss of R$159,261 and R$153,969, as of December 31, 2019 and 2018 respectively. e) Treasury shares Number of R$ At December 31, 2017 103,000 2,745 Purchased 447,000 12,179 Cancelled (217,020 ) (4,374 ) At December 31, 2018 332,980 10,550 Purchased 301,008 12,853 Cancelled (189,742 ) (7,838 ) December 31, 2019 444,246 15,565 |
Income (loss) per share
Income (loss) per share | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Income (loss) per share | 23. Income (loss) per share Basic earnings or loss per common share are calculated by dividing net income (loss) attributable to the equity holders of Azul by the weighted average number of common shares outstanding during the year ended December 31, 2019 , 2018 and 2017 Diluted earnings or loss per common share are calculated by dividing the net income (loss) attributable to the equity holders of Azul, by the weighted average number of common shares outstanding during the year ended December 31, 2019 , 2018 and 2017 Basic earnings or loss per preferred share are calculated by dividing net income (loss) attributable to the equity holders of Azul by the weighted average number of preferred shares outstanding during the year ended December 31, 2019 , 2018 and 2017 . Diluted earnings or loss per preferred share are calculated by dividing the net income (loss) attributable to the equity holders of Azul, by the weighted average number of preferred shares outstanding during the year ended December 31, 2019 , 2018 and 2017 The following table shows the calculation of income or loss per common and preferred share in thousands, except for values per share: For the year ended December 31, 2019 2018 (Restated) 2017 (Restated) Numerator Net income ( loss ) (2,403,086 ) (635,731 ) 424,513 Denominator Weighted average number of common shares 928,965,058 928,965,058 928,965,058 Weighted average number of preferred shares 328,571,282 325,310,485 303,200,642 75 preferred shares (*) 75.0 75.0 75.0 Weighted average number of preferred equivalent shares (*) 340,957,483 337,696,686 315,586,842 Weighted average number of common equivalent shares (**) 25,571,811,221 25,327,251,414 23,669,013,177 Weighted average number of shares based payment 9,865,114 11,530,390 15,446,459 Weighted average number of shares that would have been issued at average market price 6,805,600 6,400,619 9,253,991 Basic net loss per common share (0.09 ) (0.03 ) 0.02 Diluted net loss per common share (0.09 ) (0.03 ) 0.02 Basic net loss per preferred share (7.05 ) (1.88 ) 1.35 Diluted net loss per preferred share (7.05 ) (1.88 ) 1.32 (*) Refers to a participation in the total equity value of the Company, calculated as if all 928,965,058 common shares outstanding had been converted into 12,386,200 preferred shares at the conversion ratio of 75 common shares to 1.0 preferred share. (**) Refers to a participation in the total equity value of the Company, calculated as if the weighted average preferred shares outstanding had been converted into common shares at the conversion ratio of 75 common shares to 1.0 preferred share |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Derivative financial instruments | 2 4 The Company has the following financial instruments: Book value Fair value L December 31, December 31, 2019 2018 (Restated) 2019 2018 (Restated) Assets: Cash and cash equivalents (Note 6) 2 1,647,880 1,169,136 1,647,880 1,169,136 Trade and other receivables (Note 8) 2 1,165,866 1,069,056 1,165,866 1,069,056 Aircraft sublease receivables (Note 9) (*) 2 279,504 361,738 279,504 361,738 Short-term investments (Note 7) 2 62,009 517,423 62,009 517,423 Long term investments 3 1,397,699 1,287,781 1,397,699 1,287,781 Derivative financial instruments (*) 2 825,924 595,380 825,924 595,380 Liabilities: Accounts payable (Note 19) 2 1,626,577 1,450,439 1,626,577 1,450,439 Loans and financing (Note 17)(*) 2 3,518,156 2,756,126 3,504,754 2,742,359 Lease liabilities (Note 1 8 (*) 2 12,106,621 8,919,746 12,106,621 8,919,746 Derivative financial instruments (*) 2/3 310,190 440,994 310,190 440,994 (*) Includes current and non-current. The carrying value of trade , aircraft sublease receivable and other receivables and accounts payable approximate their fair value largely due to the short-term maturity of these instruments. 2 4 Long term Investments The Company has the following long term financial investments evaluated at fair value: December 31, 2019 2018 Bond TAP 1,236,828 1,287,781 Other investments (Note 12 ( g 160,871 — 1,397,699 1,287,781 Description of significant unobservable inputs to valuation: The significant unobservable inputs used in the fair value measurements categorised within Level 3 of the fair value hierarchy, together with a quantitative sensitivity analysis as of Non-listed Valuation technique Significant unobservable inputs Rate Sensitivity of the input to fair value (amounts in Discounted cash flow method Long-term growth rate for cash flows for subsequent years December 31, 2019: 2.5% (December 31, 2018: 1.9%) 10bps (2018 – 10bps) increase (decrease) in the growth rate would result in an increase (decrease) in the fair value of R$24 (December 31, 2018 - R$3) Cost of equity December 31, 2019: 13.6% (December 31, 2018: 12.2%) 50bps increase in cost of equity would result in a reduction in the fair value of R$18 (December 31, 2018 - R $ 50bps reduction in cost of equity would result in an increase in the fair value of R$20 (December 31, 2018 - R $ Level 3 financial assets reconciliation Changes in the fair value of the TAP Convertible Bonds is detailed below: December 31, 2019 2018 Balance at the beginning of the period 1,287,781 835,957 Foreign currency exchange gain (loss) (*) 10,723 48,365 Interest accrual (Note 12. g 30,184 29,630 Net present value of debt component (Note 12. g 116,912 13,219 Fair value of call-option (Note 12. g (208,772 ) 360,610 Balance at the end of the period 1,236,828 1,287,781 (*) recorded in the “Foreign currency exchange, net” in the income statements line item. (**) recorded in the “Result from related parties transactions, net” in the income statements line item. Changes in the fair value of other investments are detailed below: December 31, 2019 2018 Balance at the beginning of the period — — Acquisition 96,161 — Fair value of other investments (*) 64,710 — Balance at the end of the period 160,871 — (*) recorded in the “Result from related parties transactions, net” in the income statements line on the acquisition. 2 4 Derivative financial instruments December 31, 2019 December 31, 2018 Assets Liabilities Assets Liabilities Cash flow hedge Interest rate swap contract — (7,129 ) — (9,422 ) Foreign currency options 338,592 — 246,323 — Fair value hedge Interest rate swap contract 24,057 — 21,813 (1,732 ) Derivatives not designated as hedge Interest rate swap contract 203,636 (266,439 ) 93,606 (260,593 ) Forward foreign currency contract 203,148 (1,135 ) 233,638 (74 ) Heating oil forward contracts 56,491 — — (123,224 ) Foreign currency options — (35,487 ) — (45,949 ) 825,924 (310,190 ) 595,380 (440,994 ) The maturity of the derivative financial instruments held by the Company is as follows: December 31, 2019 Immediate Until 6 7 to 12 1 to 5 years Total Assets from derivative transactions 3,354 89,580 75,214 657,776 825,924 Liabilities from derivative transactions (2,135 ) (46,987 ) (32,074 ) (228,994 ) (310,190 ) Total financial instruments 1,219 42,593 43,140 428,782 515,734 Cash flow hedge Definition Origin of Risk Risks designated for hedge Hedge instrument Recognition Hedge of exposure to variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect the Company’s results. Finance lease of aircraft with post-fixed interest rates Interest Rate (Libor USD) Cash Flow Swap - swapping post-fixed interest rate to pre-fixed. • Protected item: Amortized cost - Liabilities in contra-entry result. • Hedge instrument: Fair value - Assets / Liabilities (MtM) in contra-entry profit (accrual) and other comprehensive income (MtM). Senior Notes denominated in foreign currency (only amortization) Exchange Variation of dolar Foreign currency options • Protected item: Amortized cost - Liabilities in contra-entry result. • Hedge instrument: Fair value - Asset / Liability (MtM), in income statement (Intrinsic Value), offsetting the effect of the exchange variation on debt and other comprehensive income in Equity (Value in time) As of December 31, 2019 and 2018, the Company had interest rate swaps designated as cash flow hedges to hedge against the effect of changes in the interest rate on a portion of the finance leases payments and forward foreign currency the protection of the Senior Notes principal denominated in foreign currency and the principal of OPIC in the next 12 months. On April 16, 2019, the Company designated for cash flow hedge accounting options with notional in the amount of US$79 million contracted for the purpose of protecting the principal of Opic. The positions were: December 31, 2019 Notional amount Asset position Liability Fair value Cash flow hedge: Loans and financing 40,872 LIBOR US$ Fixed rate (7,129) Foreign currency options 1,614,211 US$ R$ 338,592 1,655,083 331,463 December 31, 2018 Notional amount Asset position Liability Fair value Cash flow hedge: Loans and financing 57,805 LIBOR US$ Fixed rate (9,422 ) Foreign currency options 1,314,600 US$ R$ 246,323 1,372,405 236,901 The critical terms of the swap contracts matched with the terms of the hedged loans. Considering all transactions were deemed effective, the fair value changes on cash flow hedge were recorded in other comprehensive loss against financial instruments in liabilities or assets. The gains and losses of hedge items (accrual of interest and exchange variation – financ e Factors that may influence hedge effectiveness include: i) the time difference between the hedging instrument and the hedged item and ii) the counterparty’s credit risk substantially impacts the fair value of the derivative instrument, but not the hedged object (Senior Notes). Changes in other comprehensive loss (cash flow hedge reserve) are detailed below: December 31, 2019 2018 (Restated) 2017 (Restated) Balance at the beginning of the period (153,969 ) (14,688 ) (33,785 ) Transactions settled during the period 4,389 6,444 6,435 New transactions recognized in income statement (7,353 ) (215,765 ) — Fair value adjustment (2,328 ) 70,040 12,662 Balance at the end of the period (159,261 ) (153,969 ) (14,688 ) Fair value hedge Definition Origin of Risk Risks designated for hedge Hedge instrument Recognition Hedge of exposure to changes in the fair value of recognized asset or liability or unrecognized firm commitment. Finance lease pre-fixed Interest rate Cash Flow Swap - swapping pre-fixed • Protected item: Fair value - Liabilities in contra-entry result. • Hedge instrument: Fair value - Assets / Liabilities in contra-entry result (MtM). Debt instruments denominated in US$ Exchange Rate and Interest Rate Cash Flow Swap - swapping US $ + Spread to reais at% CDI. • Protected item: Fair value - Liabilities in contra-entry result. • Hedge instrument: Fair value - Assets / Liabilities in contra-entry result (MtM). As of December 31, 2019 the Company had fixed to floating interest rate swap contracts with a notional amount of R$139,702 (December 31, 2018 - R$163,353). These contracts entitle the Company to receive fixed interest rates and pay floating interest based on CDI. Adjustment to fair value of these contracts resulted in the recognition of an unrealized gain of R$24,057 (December 31, 2018 – R$20,081 and December 31, 2017 – loss of R$4,723 ) which was recorded as financial income. The impact on the statement of net income (loss) was offset by a negative adjustment on the debt hedged. There was no ineffectiveness during the year ended December 31, 2019. Derivatives not designated as hedge accounting i) Forward foreign currency contract The Company is exposed to foreign currency risk in USD exchange rate, and therefore entered into NDF contracts registered at CETIP with renowned banks. During the year ended December 31, 2019, the Company had entered into NDF contracts of US$426 million to protect itself from currency fluctuations (December 31, 2018 - US$375 million) that generated an unrealized gain of R$202,013 (December 31, 2018 – R$233,564 and December 31, 2017 – R$219,930 ) . ii) Foreign currency options On December 31, 2019 the Company also has currency options with notional of US$195 million (December 31, 2018 – US$159 million), of which US$118 million (December 31, 2018 - US$129 million) are in connection with the Senior Notes hedge and US$30 million (December 31, 2018 - US$30 million) in connection to a dollar loan and million refers the OPIC operations. As of December 31, 2019, these options generated an unrealized loss of R$35,487 (December 31, 2018 – R$45,949 and December 31, 2017 – R$160,464 ) . iii) Interest rate swap contract As of December 31, 2019 the Company had interest rate swap contracts in connection with the Senior Notes and the loan of OPIC. Changes in fair value of these instruments resulted in the recognition of an unrealized loss of R$62,803 (December 31, 2018 - R$166,987 and December 31, 2017 - R$380,946 ) . iv) Heating oil forward contracts As of December 31, 2019, the Company also had average NDF contracts on over-the-counter loss of and December 31, 2017 – gain of R$4,469). Fair value of financial instruments The Company applies the following hierarchy to determine the fair value of financial instruments: Level 1: Level 2: Level 3: Assets measured at fair value December 31, Level 1 Level 2 Level 3 Financial assets at fair value Cash and cash equivalents (Note 6) 1,647,880 — 1,647,880 — Short-term investments 62,009 — 62,009 — Long-term investments (b) 1,397,699 — — 1,397,699 Interest rate swap contract - fair value hedge option (a) 24,057 — 24,057 — Interest rate swap contract- not designated as hedge 203,636 — 203,636 — Forward foreign currency contract 203,148 — 203,148 — Foreign currency options 338,592 — 338,592 — Fuel term contract 56,491 — 56,491 — Liabilities measured at fair value December 31, Level 1 Level 2 Level 3 Financial liabilities at fair value Interest rate swap contract - cash flow hedge (7,129 ) — (7,129 ) — Interest rate swap contract- not designated as hedge (266,439 ) — (266,439 ) — Foreign currency options (35,487 ) — (35,487 ) — Fuel term contract (1,135 ) — (1,135 ) — Assets measured at fair value December 31, Level 1 Level 2 Level 3 Financial assets at fair value Cash and cash equivalents (Note 6) 1,169,136 — 1,169,136 — Short-term investments 517,423 — 517,423 — Long-term investments (b) 1,287,781 — — 1,287,781 Interest rate swap contract - fair value option (a) 21,813 — 21,813 — Interest rate swap contract- not designated as hedge 93,606 — 93,606 — Forward foreign currency contract 233,638 — 233,638 — Foreign currency options 246,323 — 246,323 — Liabilities measured at fair value December 31, Level 1 Level 2 Level 3 Financial liabilities at fair value Interest rate swap contract - cash flow hedge (9,422 ) — (9,422 ) — Interest rate swap contract - fair value option (a) (1,732 ) — (1,732 ) — Interest rate swap contract- not designated as hedge (260,593 ) — (260,593 ) — Foreign currency options (45,949 ) — (45,949 ) — Forward foreign currency contract (74 ) — (74 ) — Heating oil forward contracts (123,224 ) — (123,224 ) — (a) Portion of the balances consist of loans from FINAME PSI, and standard FINAME presented at their value adjusted by the hedged risk, applying fair value hedge accounting rules. (b) The Company calculated the fair value of the call option based on a valuation for TAP and binomial model considering the term of option, discount rate and the market volatility of publicly traded comparable airlines, calculated on a 2 years average. The resulting amount of the binomial model calculated in Euros was converted into Reais using the period-end 24 |
Operating revenue
Operating revenue | 12 Months Ended |
Dec. 31, 2019 | |
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Operating revenue | 2 5 Operating revenue For the year ended December 31, 2019 2018 (Restated) 2017 (Restated) Revenue Passenger revenue 11,198,585 9,029,960 6,985,044 Cargo and other revenue 604,297 430,725 1,054,761 Gross revenue 11,802,882 9,460,685 8,039,805 Taxes levied on Passenger revenue (290,696 ) (359,828 ) (289,704 ) Cargo and other revenue (69,869 ) (43,793 ) (45,270 ) Total taxes (360,565 ) (403,621 ) (334,974 ) Net revenue 11,442,317 9,057,064 7,704,831 |
Financial result
Financial result | 12 Months Ended |
Dec. 31, 2019 | |
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Financial result | 2 6 For year ended December 31, 2019 2018 (Restated) 2017 (Restated) Financial income Interest on short-term investments (a) 12,462 31,947 50,604 Sublease receivable 29,695 33,129 33,467 Other 29,914 9,446 44,201 72,071 74,522 128,272 Financial expenses Interest on loans (a) (195,688 ) (164,294 ) (235,184 ) Interest on lease (a) (732,723 ) (606,076 ) (484,300 ) Interest on finance lease (a) (73,284 ) (75,313 ) (72,481 ) Interest on factoring credit card and travel agencies receivables (13,477 ) (10,625 ) (36,188 ) Interest on other operations (129,954 ) (79,822 ) (110,375 ) Guarantee commission (30,977 ) (26,187 ) (24,880 ) Loan costs amortization (12,549 ) (23,169 ) (36,598 ) Amortization of financial expenses (88,015 ) (56,827 ) (41,439 ) Other (52,857 ) (52,515 ) (37,153 ) (1,329,524 ) (1,094,828 ) (1,078,598 ) Derivative financial instruments, net 325,452 298,094 (90,171 ) Foreign exchange result, net (391,905 ) (1,306,063 ) 34,859 Net financial expenses (1,323,906 ) (2,028,275 ) (1,005,638 ) (a) Interest and expenses on assets and liabilities, in the cash flow statement on December 31, 2019 - R$1,082,256 (December 31, 2018 - R$866,895 and December 31, 2017 – R$776,470) are registred in this lines. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2019 | |
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Commitments | 2 7 Commitments a) Commitments for future acquisition of aircraft The Company has purchase commitments for the acquisition of 94 aircraft (December 31, 2018 – 94), under which the following futures payments will be made: December 31, 2019 2018 Up to one year 2,815,674 243,857 From one to five years 10,031,346 10,695,827 More than five years 2,625,245 3,960,657 15,472,265 14,900,341 b) Commitments for future acquisition of aircraft – lessor placement The Company has purchase commitments for the acquisition of 53 aircraft (December 31, 2018 – 75), under which the following futures payments will be made: December 31, 2019 2018 Up to one year 195,981 218,775 From one to five years 2,963,355 3,386,676 More than five years 4,232,251 4,887,708 7,391,587 8,493,159 c Letter of credits As of December 31, 2019, the Company had issued letters of credit totaling US$529 million (December 31, 2018 - US$282 million) equivalent to R$2,134,186 (December 31, 2018 – R$1,091,744) and bank guarantees in the amount of R$50,432 (December 31, 2018 – R$47,676) in relation to security deposits, maintenance reserves and local sureties. |
Share-based option plan
Share-based option plan | 12 Months Ended |
Dec. 31, 2019 | |
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Share-based option plan | 2 8 2 8 Equity-settled awards 2 8 First share option plan The first share option plan (“First Option Plan”) of the Company was approved on a Shareholders’ Meeting held on December 11, 2009. The plan has a term of 10 years, and no option may be granted after this period. Exercise conditions of options issued under the First Option Plan require in addition to a vesting period of 4 years, the occurrence of an initial public offering (IPO) of the shares of the Company. 2 8 Second share option plan The second share option plan (“Second Option Plan”) was approved on a Shareholders’ Meeting held on June 30, 2014, as amended. Exercise conditions of options issued under the programs of the Second Option Plan, prior to Azul’s IPO, require in addition to a vesting period of 4 years, the occurrence of an initial public offering (IPO) of the shares of the Company. Additionally, the options have an 8-year The options issued under the programs of the Second Option Plan, after Azul’s IPO, require a vesting period of 4 years. The options have a 10-year 2 8 Third share option plan The third share option plan (“Third Option Plan”) was approved on a Shareholders’ Meeting held on March 10, 2017. Exercise conditions of options issued under the Third Option Plan require a vesting period of 5 years. The options have a 5-year 2 8 Information about the fair value of share options and expense The grant-date fair value of share options has been measured using the Black-Scholes model. Expected volatility has been calculated based on historical volatility of airline shares listed on stock exchanges in Brazil and Latin America. The inputs are mentioned below. First Option Plan 1 st 2 nd 3 rd Total options granted 5,032,800 1,572,000 656,000 Date of compensation committee Dec 11, 2009 Mar 24, 2011 April, 05, 2011 Total options outstanding 303,700 284,000 12,460 Option exercise price R$3.42 R$6.44 R$6.44 Option fair value as of grant date R$1.93 R$4.16 R$4.16 Estimated volatility of the share price 47.67% 54.77% 54.77% Expected dividend 1.10% 1.10% 1.10% Risk-free rate of return 8.75% 12.00% 12.00% Average remaining maturity (in years) — — — Maximum life of the option Undetermined Undetermined Undetermined Expected term considered for valuation 7 years 7 years 7 years Second Option Plan Third Option 1 st 2 nd 3 rd 4 th 1 st Total options granted 2,169,122 627,810 820,250 680,467 9,343,510 Date of compensation committee June 30, 2014 July 01, 2015 July 01, 2016 July 06, 2017 Mar 14, 2017 Total options outstanding 861,197 231,638 391,176 494,491 5,606,106 Option exercise price R$19.15 R$14.51 R$14.50 R$22.57 R$11.85 Option fair value as of grant date R$11.01 R$10.82 R$10.14 R$12.82 R$4.82 Estimated volatility of the share price 40.59% 40.59% 43.07% 43.35% 50.64% Expected dividend 1.10% 1.10% 1.10% 1.10% 1.10% Risk-free rate of return 12.46% 15.69% 12.21% 10.26% 11.32% Average remaining maturity (in years) — — 0.4 1.5 2.2 Maximum life of the option 8 years 8 years 8 years 10 years 5 years Expected term considered for valuation 4.5 years 4.5 years 4.5 years 5.5 years 5 years Changes in stock options are disclosed below: Number of Weighted average (in reais) Balance as of December 31, 2017 16,250,687 R$ 11.69 Cancelled (182,388 ) R$ 18.48 Exercised (4,877,470 ) R$ 9.44 Balance as of December 31, 2018 11,190,829 R$ 12.55 Cancelled (69,085 ) R$ 20.70 Exercised (2,936,976 ) R$ 11.51 Balance as of December 31, 2019 8,184,768 R$ 12.85 Number of options exercisable as of: December 31, 2019 2,294,135 R$ 13.81 December 31, 2018 2,572,640 R$ 11.60 Share-based compensation expense recognized in the statement of net income (loss) during the year ended December 31, 2019 with respect to the share options amounted to R$12,742 (December 31, 2018 – R$16,677 and December 31, 2017 – R$19,862 ). 2 8 Restricted share units The Shareholders’ Meeting held on June 30, 2014 approved a restricted share unit plan (“RSU Plan”). Under the terms of the RSU Plan participants were granted a fixed monetary amount (in Reais) which would be settled in a quantity of preferred shares determined by dividing the monetary amount by the price per share of the preferred shares at IPO. Exercise conditions of RSUs require, in addition to a vesting period of four years, the occurrence of an IPO of the shares of the Company for the RSUs to become exercisable. At the date of the IPO, the monetary amount of the awards was converted into units based on the IPO date fair value of the preferred shares. The related liability was reclassified to equity in line with the post IPO settlement method. Subsequent grants are measured based on the grant date fair value of the awards. 2 8 Information about the fair value of RSUs and expense Date of compensation Total shares Total shares Fair value as (in reais) 1 st June 30, 2014 487,670 7,934 R$ 21.00 2 nd July 01, 2015 294,286 8,094 R$ 21.00 3 rd July 01, 2016 367,184 75,527 R$ 21.00 4 th July 06, 2017 285,064 122,740 R$ 24.17 5 th August 07, 2018 291,609 205,099 R$ 24.43 6 th August 05, 2019 170,000 170,000 R$ 51.65 1,895,813 589,394 Changes in RSU are disclosed below: Number of RSU As of December 31, 2017 809,946 Granted 291,609 Cancelled (72,303 ) Exercised (299,659 ) As of December 31, 2018 729,593 Granted 170,000 Cancelled (49,748 ) Exercised (260,451 ) As of December 31, 2019 589,394 Share-based compensation expensed recognized in the statement of net income (loss) during the year ended December 31, 2019 with respect to the RSU amounted to R$6,152 (December 31, 2018 - R$6,254 and December 31, 2017 – R$10,027 ). 2 8 Virtual Stock Option Plan On August 7, 2018, the Compensation Committee approved the Virtual Stock Option Plan (“Phantom Shares”). The plan consists of a remuneration in cash, as there is no effective trading of the shares. There will be no issue and / or delivery of shares for settlement of the plan. A liability is recorded monthly, based on the fair value of the Phantom Shares granted and the vesting period, with an offsetting entry in the income statement. The fair value of this liability is reviewed and updated for each reporting period, in accordance with the change in the fair value of the benefit granted. The options issued under the programs of the Phantom Shares, require a vesting period of 4 years. The options have an 8-year 2 8 Information about the fair value of share options and expense The fair value of share options has been measured using the Black-Scholes model using the informations below. Phantom Shares 1 st 2 nd Total options granted 707,400 405,000 Date of compensation committee August 7, 2018 August 5, 2019 Total options outstanding 560,908 405,000 Option exercise price R$20.43 R$42.09 Option fair value R$40.41 R$25.34 Estimated volatility of the share price 34.00 % 38.8 % Expected dividend 1.10 % 1.10 % Risk-free rate of return 6.40 % 6.40 % Average remaining maturity (in years) 2.6 3.6 Maximum life of the option 8 years 8 years Expected term considered for valuation 6 years 4.5 years Changes in virtual stock option plan are disclosed below: Number of As of December 31, 2018 707,400 Granted 405,000 Cancelled (47,889 ) Paid (98,603 ) As of December 31, 2019 965,908 The liability recorded as of December 31, 2019 is R$11,647 (December 31, 2018- R$1,596) and is presented in the consolidated statement of financial position under “Salaries, wage and benefits”. Share-based compensation expense D and December 31, 2017 – R$0 ). |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
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Subsequent events | 2 9 On March 24, 2020, Azul announced that from March 25, 2020 to April 30, 2020, it expects to operate 70 non-stop flights per day to 25 cities, representing a 90% reduction of its consolidated planned capacity in terms of ASKs for the month of April, in light of the uncertainty due to the COVID-19 pandemic that is affecting the demand for air traffic. Azul also announced several measures to reduce fixed costs and preserve its cash position as described below. Measures for c osts and expenses r eduction • Executive management team salary cut of 50% and managers salary cut of 25% until situation normalizes; • Hiring freeze; • Payment deferral of 2019 bonus and profit sharing; • An increase of crewmembers joining the Company’s voluntary unpaid leave program with over 10,500 requests approved as of March 31, 2020; • Suspension of travel and discretionary spending; • Grounding of surplus aircraft; and • Suspending all new aircraft deliveries. Measures for b alance s heet and c ash flow m anagement In addition to taking aggressive steps to reduce operating costs, the Company is also working to strengthen its liquidity position by preserving cash, including: • Actively managing all areas of working capital; • Eliminating all non-critical capital spend; • Negotiating new payment terms with its commercial partners; and • Discussing new credit facilities with financial institutions, including the Brazilian Development Bank (BNDES), who announced a support package worth R$10 billion in credit lines for the Brazilian airline sector. The Company anticipates that these initiatives to obtain additional sources of liquidity, along with measures to contain operational expenses and non-essential capex outflows, will provide ample resources to endure a prolonged downturn in demand during several months. However, it is not possible to guarantee their sufficiency and complete implementation, as some of them depend on third parties actions and decisions. New measures may still be implemented by Azul, as the extent of the impact of COVID-19 on Azul’s operational and financial performance is still uncertain and will depend on future developments, including the duration and spread of the outbreak and related travel advisories and restrictions and the impact of the COVID-19 on overall demand for air travel, all of which cannot be predicted. Management continues to monitor the Company’s profitability and its financial position, taking actions to sustain its ability to continue with its operations in the foreseeable future. On February 21, 2020, Azul Linhas Aéreas Brasileiras, a wholly-owned subsidiary of Azul S.A, and Two Taxi Aereo, “TwoFlex”, announced that they have entered into a certain Quota Purchase Agreement under which Azul agreed to acquire the Brazilian regional carrier TwoFlex for the total purchase price of R$123 million. TwoFlex is a domestic airline based in Jundiaĺ, Brazil, founded in 2013 and offers regular passenger and cargo service to 39 destinations in Brazil, of which only three regional destinations are currently being served by Azul. TwoFlex also holds 14 daily departure and arrival slots on the auxiliary runway of Congonhas, São Paulo’s downtown airport. Congonhas is a particularly coveted airport because of its proximity to São Paulo’s business districts. Currently, Azul’s two larger competitors, Gol and LATAM, control most of the flights in Congonhas. TwoFlex’s fleet is composed of 17 owned Cessna Caravan aircraft, a regional turboprop with a capacity of 9 passengers. On March 27, 2020, the Brazilian Administrative Council for Economic Defense (CADE - Conselho Administrativo de Defesa Econômica arties. The parties are working towards the closing of the transaction, which we expect to occur in the near future. On February 6, 2020, as announced to the market, the Company signed a Joint Venture agreement with TAP, in order to increase connectivity between the Brazilian domestic market and the European market, the transaction will be submitted for regulatory approvals. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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Basis for consolidation | 3.1. Basis f or consolidation The consolidated financial statements comprise the financial statements of Azul and its subsidiaries as of December 31, 2019. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if and only if the Company has: • Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee) • Exposure, or rights, to variable returns from its involvement with the investee, and • The ability to use its power over the investee to affect its returns. The Company re-assesses When necessary, adjustments are made to the financial statements of subsidiaries to align their accounting policies with those of the Company. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Company are eliminated in full on consolidation. |
Cash and cash equivalents | 3.2. Cash and cash equivalents Cash and cash equivalents are held in order to meet short-term cash commitments and not for investment or other purposes. The Company considers as cash equivalents deposits or instruments which are readily convertible into a known cash amount and subject to an insignificant risk of change in value. The Company considers as cash equivalents instruments with original maturities of less than three months. |
Financial instruments | 3.3 Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. 3.3.1. Non-derivative Initial recognition Non-derivative Trade receivables that do not contain a significant financing component are measured at initial recognition at the transaction price. Classification of financial instruments Under IFRS 9, classification and measurement of financial instruments is based on the business model of the Company to manage financial assets and on the contractual cash flow characteristics of the financial assets. Financial assets are classified in three categories: (i) measured at amortized cost, (ii) measured at fair value through other comprehensive income, and (iii) measured at fair value through profit or loss For a financial asset to be classified and measured at amortized cost or at fair value through other comprehensive income, it needs to give rise to cash flows that are “exclusively principal and interest payments” (also referred to as the “SPPI” test) on the principal amount outstanding. This evaluation is performed at instrument level. The Company’s business model for managing financial assets refers to how it manages its financial assets to generate cash flows. The business model determines whether cash flows will result from the collection of contractual cash flows, the sale of financial assets or both. Purchases or sales of financial assets that require the delivery of assets within a period established by regulation or convention in the market (regular negotiations) are recognized on the trade date, that is, the date on which the Company undertakes to buy or sell the asset. Business model assessment The business model assessment requires classification of the asset in one of the business models defined by IFRS 9. The business models reflect how the Company manages the financial asset in order to generate cash flows on the basis of scenarios that the Company reasonably expects to occur. In order to perform the business model assessment, the Company has grouped financial assets in portfolios of assets that are managed together. Management Objective Measurement Collect contractual payments over the life of the instrument Amortized cost Collecting contractual cash flows and selling financial assets Fair value through other comprehensive income Held for trading or measured in a fair value basis Fair value through profit or loss Contractual cash flow characteristics assessment The contractual cash flow characteristic assessment requires to determine whether the contractual cash flows of the assets consists solely of payment of principal or interest on the principal amount outstanding “SPPI”. When the asset cash flows is SPPI, it will be subsequently measured following the result of the business model assessment. However when the asset cash flows is not SPPI, it will be measured at fair value through profit or loss irrespective of the result of the business model assessment. Subsequent measurement of the financial assets of the Company The criteria for subsequent measurement of the financial assets of the Company is presented below: • At amortized cost – Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired ; Financial assets at amortised cost includes: restricted investments, trade and other receivables other than credit card receivables, receivables from related parties, security deposits and maintenance reserves; • At fair value through other comprehensive income (OCI) – For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss ; • At fair value thorough profit of loss – Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortised cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of profit or loss. Financial assets at fair value through profit or loss include:Financial instruments, short-term investments and the TAP Convertible Bonds presented under long-term investments 3.3.2. Non-derivative Initial recognition Financial liabilities are initially classified as financial liabilities at fair value through profit or loss, financial liabilities at amortized cost, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. Non-derivative Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in the statement of profit or loss. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. The Company has not designated any financial liability as at fair value through profit or loss. Loans and borrowings This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss. All non-derivative 3.3.3. Financial instruments and hedge accounting– Initial recognition and subsequent measurement Initial recognition and subsequent measurement The Company uses financial instruments, such as currency forward contracts options and NDF to hedge itself against the currency risk, heating oil swaps to hedge the fuel price risk and interest rate swaps to hedge against the interest risk. Financial instruments not designated as hedge instruments are recognized initially at fair value on the date when the derivative contract is entered into and are subsequently remeasured at fair value. The accounting for subsequent changes in fair value to derivatives that are hedge instruments in a hedge accounting depends of the nature of the item being hedged and the type of hedge relationship designated. Derivatives are presented as financial assets when the instrument’s fair value is positive and as financial liabilities when fair value is negative. Any gains or losses from changes in the fair value of derivatives not designated to hedge accounting during the year are recorded directly in profit or loss. The accounting treatments for derivatives designated as hedge instruments are presented in the next topic. Hedge accounting The following classifications are used for hedge accounting purposes: • Fair value hedge when hedging against exposure to changes in fair value of recognized assets or liabilities, or an unrecognized firm commitment. • Cash flow hedge when providing protection against changes in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction which may affect the income or foreign currency risk in an unrecognized firm commitment. On inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which the Company wishes to apply hedge accounting, as well as the Company’s objective and risk management strategy for undertaking the hedge. The documentation includes identification of the hedge instrument and item or transaction being hedged, the nature of the risk being hedged and risks excluded, and effectiveness assessment approach using prospect basis proving the existence of economic relationship between the hedged item and hedge instrument, that credit risk does not dominate the value changes that results from that economic relationship and how the hedge ratio is determined, including possible sources of ineffectiveness by performing a qualitative (when the critical terms of hedged item and hedge instrument match or are closely aligned – as nominal amount, maturity and underlying) or quantitative. Hedges that meet the criteria for hedge accounting are accounted for as follows: Fair value hedge The gain or loss resulting from changes in fair value of a hedge instrument (for derivative hedge instrument) or the foreign exchange component of its carrying amount is recognized in profit or loss or other comprehensive income, if the hedging instruments hedges an equity instrument for which the Company has elected to present changes in fair value in other comprehensive income. The gain or loss on the hedged item shall adjust the carrying amount of the hedged item (for on-balance If the hedged item is derecognized, the unamortized fair value is recognized immediately in profit or loss. When an unrecognized firm sales commitment is designated as a hedged item in a hedge relationship, the change in fair value of the firm sales commitment attributable to the hedge risk is recognized as a financial asset or as a financial liability, with the recognition of a corresponding gain or loss in the statements of net income (loss). The accumulated balance in the statement of financial position resulting from successive changes in fair value of the firm sales commitment attributable to the hedged risk will be transferred to the balance of the hedged item upon its recognition (recognition of balance is either of accounts payable or accounts receivable). The Company holds interest rate swaps to hedge against its exposure to changes in fair value of some of its aircraft financing (Note 24). Cash flow hedge The effective portion of a gain or loss from the hedge instrument is recognized directly in other comprehensive income. When the hedge ratio is not aligned, giving rise to ineffectiveness, but the risk management strategy is the same, the Company shall rebalance the hedge ratio in order to meet the hedge effectiveness requirements. Any gain or loss remaining from the hedge instrument (as result of the rebalancing) is deemed an ineffectiveness and shall be recorded in profit or loss. The amounts recorded in other comprehensive loss are transferred to the statement of net income (loss) in tandem with the hedged transaction impact on profit or loss. For example, when a forecasted sale occurs or when the income or expense being hedged is recognized. When the hedged item is the cost of a non-financial non-financial non-financial The Company shall discontinue hedge accounting prospectively only when the hedging relationship ceases to meet the qualifying criteria (after taking into account any rebalancing of the hedging relationship). If the occurrence of the forecast transaction or firm commitment is no longer likely, the amounts previously recognized in other comprehensive loss are transferred to the statement of net income (loss). If the hedge instrument expires or is sold, terminated, exercised without replacement or rollover, or if its designation as a hedge is revoked, any cumulative gain or loss previously recognized in comprehensive loss remains deferred in other comprehensive loss until the forecast transaction or firm commitment affects profit or loss. The Company uses swap contracts to hedge against its exposure to the risk of changes in floating rates related to its finance lease transactions and currency option to hedge the notional amount of debt denominated in foreign currency. Current and non-current Derivative instruments that are not classified as effective hedge instruments are classified as current, non-current non-current • When the Company expects to maintain a derivative as an economic hedge (and to not apply hedge accounting) for a period exceeding 12 months after the statement of financial position date, the derivative is classified as non-current non-current • Embedded derivatives that are not closely related to the host contract are classified in a manner consistent with the cash flows of the host contract. • Derivative instruments that are designated as and are effective hedge instruments are classified consistently with the classification of the underlying hedged item. The derivative instrument is segregated into current and non-current 3.3.4. Derecognition of financial assets and financial liabilities Financial assets Financial assets, or where appropriate, part of a financial asset or part of a group of similar financial assets, are derecognized when: • The rights to receive cash flows from the assets have expired; or • The Company has transferred their rights to receive cash flows of the assets and (a) the Company has substantially transferred all the risks and benefits of the assets, or (b) the Company has not transferred or retained substantially all the risks and benefits related to the assets, but has transferred control of the assets. When the Company has transferred their rights to receive cash flows from assets and has not transferred all the risks and rewards relating to an asset, that asset is recognized to the extent of the continuing involvement of the Company. In this situation, the Company also recognizes an associated liability. The transferred assets and associated liabilities are measured based on the rights and obligations that the Company has retained. Continuing involvement that takes the form of a guarantee on the assets transferred is measured by the original book value of the assets or the maximum payment that may be required from the Company, whichever is lower. Financial liabilities A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender with substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability, with the difference in the corresponding book values recognized in the statements of net income (loss). 3.3.5. Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liability simultaneously. 3.3.6. Impairment of financial assets The Company recognizes an allowance for losses on financial assets for expected credit losses in line of IFRS 9 requirements. Trade receivables and contract assets The Company uses the simplified approach allowed by IFRS 9 to estimate the allowance for losses on trade receivables. Under the simplified approach , In estimating expected credit losses the Company considers credit card receivables as receivables with a low risk of default. Considering that it has a relevant history of no credit risk losses on such receivables and that it does not expect losses during the lifetime of those receivables no allowance has been recognized for those assets. In order to estimate expected credit losses for other trade receivables and contract assets , , The estimate of the impact of future economic conditions is based on the observed correlation of defaults with macroeconomic indicators. The Company periodically reviews the historic period over which defaults are measured and, the relevant macroeconomic indicator to use and how the correlate with the experience of defaults. Other financial assets For other financial assets , , For financial assets with no significant increase in credit risk , , An allowance for loss is recognized when the Company estimates that the risk of credit losses during the period exists. In measuring the allowance , 3.3.7. Fair value of financial instruments The fair value of financial instruments actively traded in organized financial markets is determined based on prices quoted in the market at close of business at the statement of financial position date, not including the deduction of transaction costs. The fair value of financial instruments for which there is no active market is determined using valuation techniques. These techniques can include use of recent market transactions, references to the current fair value of other similar instruments, analysis of discounted cash flows, or other valuation models. An analysis of the fair value of derivative financial instruments and more details about how they are calculated is described in Note 24. |
Inventories | 3.4. Inventories Inventories consist of aircraft maintenance parts, snack supplies and uniforms. Inventories are valued at cost or net realizable value, whichever is lower, net of any provision for inventory. |
Taxes | 3.5. Taxes Income tax expense, deferred tax assets and liabilities reflect management’s best assessment of estimated current and future taxes to be paid. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized and the tax rates used, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. In Brazil, income tax is determined on each legal entity, that is, not on a consolidated basis. Provisions for income tax and social contribution are based on the taxable income of the year considering the offset of tax loss carryforwards, up to the limit of 30% of annual taxable income. Tax rates and tax laws used to calculate the amounts are those in force at the statement of financial position dates. The income from foreign subsidiaries is subject to taxation pursuant to local tax rates and legislation. In Brazil, these incomes are taxed according to Law 12.973/14. Deferred income taxes and social contribution arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. Deferred income tax assets and liabilities are measured at tax rates that are expected to be applicable in the year that the assets will be realized or the liability settled, based on tax rates (and tax law) enacted or substantially enacted on each statement of financial position date. The book value of the deferred tax assets is presented net if there is a legal or contractual right to offset tax assets against tax liabilities and deferred taxes are related to the same taxable entity and is reviewed on each statement of financial position date and written off to the extent that it is no longer probable that taxable profits will be available to allow that all or part of the deferred taxes assets will be used. Unrecognized deferred tax assets are reassessed on each statement of financial position date and are recognized to the extent that it becomes probable that future taxable profit will allow that the deferred tax assets be recovered. Deferred income tax and social contribution relating to equity items are recognized directly in equity. The Company assesses on a regular basis the tax status of situations in which tax law requires interpretation and records provisions if appropriate. |
Foreign currency transactions | 3.6. Foreign currency transactions The consolidated financial statements are presented in Brazilian reais (R$), which is the Company’s functional currency. Transactions in foreign currencies are initially translated into Brazilian reais using the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the exchange rates prevailing at the statement of financial position date. Non-monetary Non-monetary Differences arising on settlement or transaction of monetary items are recognized in the statement of net income (loss). Changes in fair value of the hedging instruments are recorded using the accounting treatment described in note 3.3. 3 |
Business Combinations | 3.8. Business Combinations The Company accounts for business combinations using the acquisition method. The cost of an acquisition is measured as the sum of the consideration transferred, based on its fair value on the acquisition date. Costs directly attributable to the acquisition are expensed as incurred. The assets acquired and liabilities assumed are measured at fair value, classified and allocated according to the contractual terms, economic circumstances and relevant conditions on the acquisition date. Goodwill is measured as the excess of the consideration transferred over the fair value of net assets acquired. If the consideration transferred is smaller than the fair value of net assets acquired, the difference is recognized as a gain on bargain purchase in the statement of net income (loss). After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the years ended December 31, 2019 and 2018, the Company has not completed any business combination transaction. For combinations between entities under common control, the Company accounts under the Predecessor Accounting Method. Assets and liabilities of the acquired entity are stated at predecessor carrying values. These intra-group transactions have no impact in the consolidated financial statements. |
Intangible assets | 3.9. Intangible assets Separately acquired intangible assets are measured at cost on initial recognition. After initial recognition, intangible assets are stated at cost, less any accumulated amortization and accumulated impairment losses. Internally generated goodwill are not capitalized. The useful life of intangible assets is assessed as definite or indefinite. Intangible assets with definite useful lives are amortized over their estimated useful lives and tested for impairment, whenever there is an indication of any loss in the economic value of the assets. The period and method of amortization for intangible assets with definite lives are reviewed at least at the end of each fiscal year or when there are indicators of impairment. Changes in estimated useful lives or expected consumption of future economic benefits embodied in the assets are considered to modify the amortization period or method, as appropriate, and treated as changes in accounting estimates. The amortization of intangible assets with definite lives is recognized in the statements of net income (loss) in the expense category consistent with the use of intangible assets (Note 15). Intangible assets with indefinite useful lives are not amortized, but are tested for impairment at each year-end Gains and losses resulting from the disposal of intangible assets are measured as the difference between the net disposal proceeds and the book value of assets, and are recognized in the statements of net income (loss). In connection with the acquisition of TudoAzul (former TRIP), the Company identified airport operating licenses as having indefinite useful lives. The fair value of Pampulha, Santos Dumont and Fernando de Noronha airports operating licenses were recognized at fair value at the acquisition date. Fair value of operating licenses was based on estimated discounted future cash flows. Operating licenses are considered to have indefinite useful lives due to several factors, including requirements for necessary permits to operate within Brazil and limited landing rights availability in Brazil’s most important airports regarding traffic volume. |
Impairment of non-financial assets | 3.10. Impairment of non-financial The Company performs an annual review for impairment indicators in order to assess events or changes in economic, technological, or operating conditions which may indicate that an asset is not recoverable. If any, those indicators are identified when performing the annual impairment testing and the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash generating unit’s (CGU) fair value less cost to sell or its value in use. When the carrying amount of intangibles exceed its recoverable amount, an impairment charge is recorded and the asset is written down to its recoverable amount. The reversal of an impairment loss should be recognized if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment test was carried out. The amount of any reversal that can be recognized is restricted to increasing the relevant asset’s carrying value to the carrying value that would have been recognized if the original impairment had not occurred. The Company operates as a single CGU. In estimating the value in use of assets, the estimated future cash flows are discounted to their present value using a pre-tax The following assets have specific characteristics for impairment testing: Goodwill Goodwill is tested for impairment annually or when circumstances indicate that the carrying value may not be recoverable. Impairment is determined for goodwill by assessing the recoverable amount of the single CGU taking the Company as a whole. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. Intangible assets Intangible assets with indefinite useful lives are tested for impairment annually at the CGU level, and when circumstances indicate that the carrying value may be impaired. |
Security deposits and maintenance reserves | 3.11. Security deposits and maintenance reserves a) Security deposits Security deposits are guarantee deposits held as collateral related to aircraft lease contracts paid to lessors at the inception of the lease agreement that will be refunded to the Company when the aircraft is returned to the lessor at the end of the lease agreement. Security deposits are denominated in U.S. Dollars and do not bear interest. b) Maintenance reserves Certain master lease agreements provide that we pay maintenance reserves to aircraft lessors to be held as collateral in advance of the performance of major maintenance activities. Maintenance reserve deposits are reimbursable to us upon completion of the maintenance event in an amount equal to the lesser of (1) the amount of the maintenance reserve held by the lessor associated with the specific maintenance event or (2) the costs related to the specific maintenance event. Substantially all of these maintenance reserve payments are calculated based on a utilization measure, such as flight hours or cycles, and are used solely to collateralize the lessor for maintenance. At the lease inception and at each statement of financial position date, we assess whether the maintenance reserve payments required by the master lease agreements are expected to be recovered through the performance of qualifying maintenance on the leased assets. Maintenance deposits expected to be recovered from lessors are reflected in security deposits and maintenance reserves in the accompanying statements of financial position. We assess recoverability of amounts currently on deposit with a lessor by comparing them to the amounts that are expected to be reimbursed at the time of the next maintenance event, and amounts not recoverable are considered maintenance costs. Aircraft maintenance reserves are classified as current or non-current depending on the dates when the related maintenance is expected to be performed (comparative figures, previously presented as non-current on its entirety, have been reclassifed to improve comparability between periods presented). |
Provisions | 3.12. Provisions Provisions are recognized when the Company has a present legal or constructive obligation, and as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. When the Company expects that the value of a provision will be reimbursed, in whole or in part, as for example under an insurance contract, the reimbursement is recognized as a separate asset but only when reimbursement is virtually certain. The expense relating to any provision is presented in the statements of net income (loss), net of any reimbursement. The Company is party in other judicial and administrative proceedings. Provisions are set up for all legal claims related to lawsuits for which it is probable that an outflow of funds will be required to settle the legal claims obligation and a reasonable estimate can be made. The assessment of probability of loss includes assessing the available evidence, the hierarchy of laws, the most recent court decision and their relevance in the legal system, as well as the assessment of legal counsel. If the Company identifies an onerous contract, a contract in which the unavoidable costs of meeting the obligations of the contract exceed the economic benefits expected to be received over the same contract, the present obligation under the contract is recognized and measured as a provision. However, before a separate provision for an onerous contract is established, the Company assesses and recognizes any impairment losses that have occurred on the assets related to that contract in accordance with IAS 36 – Impairment. |
Treasury shares | 3.13. Treasury shares Own equity instruments that are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognized in the share premium. |
Employee benefits | 3.14. Employee benefits i) Executive bonus The Company records a provision for executive bonus, which payment is contingent to meeting predefined goals and it is recorded under Salaries, wages and benefits. ii) Share-based payment The Company offered its executives share-based payments to be settled with Company shares, where the Company receives services provided by these professionals in consideration for share options and restricted stock units. The cost of equity settled awards with employees is measured based on the fair value as of the grant date. In order to determine the fair value of share options, the Company uses the Black-Scholes option pricing model (Note 28). The cost of equity-settled awards is recognized together with a corresponding increase in equity over the period in which performance and/or service conditions are fulfilled, ending on the date the employee acquires the full right to the award (vesting date). The cumulative expense for equity settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and management’s best estimate of the number of equity instruments that will be vested. The expense or credit in the statement of the operations for the period is recorded in “Salaries, wages and benefits” and represents the change in the accumulated expense recognized in the period. No expense is recognized for awards that do not vest, except for awards in which vesting is subject to a market or non-vesting When the terms of an equity-settled award are modified, the minimum expense is that which would have been recognized had the terms not been modified. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction or otherwise benefits the employee, as measured at the date of modification. When an equity - non-vesting The cost of cash-settled transactions is measured initially at fair value at the grant date. This fair value is expensed over the service period with the recognition of a corresponding liability. The liability is remeasured to fair value at each reporting date up to, and including the settlement date, with changes in fair value recognized in the statement of the operations for the period in ‘Salaries, wages and benefits’. |
Accounts payable - Supplier finance | 3.15. Accounts payable - Supplier finance The Company negotiated with suppliers to extend payment terms. As a result, the Company signed an agreement with financial institutions to allow the anticipation of trade receivables from its suppliers. Taking into account that the early receipt with financial institutions is an option for suppliers, this does not generate financial expenses for the Company, it does not require the mandatory participation of suppliers, and the Company is neither refunded and/nor benefited with discounts from the financial institution due to prepayment before the maturity date agreed upon with the supplier. There is no change in the bill subordination level in the event of judicial execution. |
Revenue | 3.16. Revenue Passenger tickets revenue is recognized upon effective rendering of the transportation service. Travel-related services revenue is recognized when the related transportation service is provided being classified as passenger revenue. Travel-related services include baggage fees, administrative charges, upgrades and other travel related charges. The Company recognizes revenue for tickets and travel-related services sold upon the departure of the related scheduled flight and for tickets and travel-related services sold that are expected to expire unused (breakage). The Company estimates the value of future refunds and exchanges, net of forfeitures for all unused tickets, once the flight date has already passed. These estimates are based on historical data and experience from past events. IFRS 15 requires disclosure of quantitative and qualitative information about transaction price allocation to unsatisfied or partially satisfied performance obligations. The Company decided to apply the practical expedient to not disclose such information as the performance obligations are part of contracts with expected duration of one year or less. |
TudoAzul Program | 3.17. “TudoAzul” Program Under the “TudoAzul” program , day o Upon the sale of a ticket, the Company recognizes a portion of the ticket sales as revenue when the transportation service occurs and defers a portion corresponding to the points earned under the TudoAzul Program, in accordance with IFRS 15, Customer Loyalty Programs in the account “Air Traffic Liabilities”. The Company determines the estimated selling price of the air transportation and points as if each element had been sold on a separate basis and was therefore based on the stand alone selling price. The Company sells points to customers and also to business partners, including co-branded Sales of points are comprised of two components, transportation and marketing. Accordingly, we recognize the marketing component in “other revenue” based on contractual terms. Points awarded or sold and not used are recorded in “Air traffic liability”. The Company recognizes revenue for points sold and awarded that will never be redeemed by program members. The Company estimates such amounts annually based upon the latest available information regarding redemption and expiration patterns. |
Segment information | 3.18. Segment information IFRS 8 requires that operations are identified by segment based on internal reports that are regularly reviewed by the Company´s chief operating decision maker to allocate funds to segments and assess their performance. The operations of the Company consist of air transportation services in Brazil. The Company’s management allocates funds based on the consolidated results. The main revenue-generating assets of the Company are its aircraft, from which revenue is generated in Brazil. Other revenues are basically derived from cargo operations and all items are directly attributed to air transport services that are recognized in income for the year when the services are rendered. Based on how the Company manages its business and the way in which fund allocation decisions are taken, the Company has only one operating segment for financial reporting purposes. |
New and amended standards and interpretations | 3.19. New and amended standards and interpretations IFRS 16 IFRS 16 was issued in January 2016 and replaces IAS 17, Leases , Determining whether an Agreement Contains a Lease SIC-15, Operating leases-Incentives SIC-27 Evaluating the Substance of Transactions in the Legal Form of a Lease IFRS 16 is effective for annual periods beginning on or after January 1, 2019. Transition to IFRS 16 A lessee can apply IFRS 16 either by a full retrospective approach or a modified retrospective approach. Azul applied the full retrospective transition approach on January 1, 2019 to each prior reporting period presented. Under the full retrospective method the comparative information was restated. Azul elected to use the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application, and lease contracts for which the underlying asset is of low value. Azul has leases of certain equipment (i.e., personal computers, printing and photocopying machines as well as communicating equipment) that are considered of low value. The impact of IFRS 16 adoption is presented as follows: December 31,2018 December 31,2017 January 01,2017 As reported IFRS 16 As adjusted As reported IFRS 16 As adjusted As reported IFRS 16 As Consolidated Balance Sheets Asset Current assets Sublease receivable (e) — 73,671 73,671 — 57,768 57,768 — 52,278 52,278 Prepaid expenses (g) 163,829 (48,376 ) 115,453 109,784 (27,128 ) 82,656 97,501 (23,997 ) 73,504 Other-current assets (h) 111,714 (1,091 ) 110,623 199,225 (418 ) 198,807 — — — Non-current Sublease receivable (e) — 288,067 288,067 — 308,824 308,824 — 361,173 361,173 Other non-current 520,723 (123,325 ) 397,398 215,707 (45,891 ) 169,816 ROU - leased aircraft and other — 4,926,326 4,926,326 — 4,377,725 4,377,725 — 4,063,048 4,063,048 ROU - maintenance of leased — 632,900 632,900 — 374,384 374,384 — 115,259 115,259 Property, plant and equipment (b) 3,289,219 (1,446,980 ) 1,842,239 3,325,535 (1,444,764 ) 1,880,771 3,439,980 (1,318,328 ) 2,121,652 Liabilities and equity Current liabilities Loans and financing (c) 335,051 (176,238 ) 158,813 568,234 (149,036 ) 419,198 985,238 (151,825 ) 833,413 Lease liabilities (a), (c) — 1,237,909 1,237,909 — 914,600 914,600 — 790,819 790,819 Accounts payable (e) 1,166,291 121,370 1,287,661 953,534 18,216 971,750 1,034,317 19,789 1,054,106 Provisions (j) — 36,083 36,083 — — — — — — Non-current Loans and financing (c) 3,370,971 (773,658 ) 2,597,313 2,921,653 (762,412 ) 2,159,241 3,049,257 (850,129 ) 2,199,128 Lease liabilities (a), (c) — 7,681,837 7,681,837 — 6,428,893 6,428,893 — 6,242,168 6,242,168 Deferred income taxes (i) 443,894 (150,683 ) 293,211 326,911 (184,809 ) 142,102 181,462 (96,904 ) 84,558 Provisions (j), (e) 80,984 632,957 713,941 73,198 479,957 553,155 76,353 402,644 478,997 Other non-current liabilities (e), (h) 321,139 5,353 326,492 343,041 79,672 422,713 377,924 21,642 399,566 Equity Other comprehensive income (i) (117,324 ) (36,645 ) (153,969 ) (11,192 ) (3,496 ) (14,688 ) (33,785 ) (12,212 ) (45,997 ) Accumulated losses (836,214 ) (4,277,093 ) (5,113,307 ) (1,214,756 ) (3,221,085 ) (4,435,841 ) (1,743,795 ) (3,116,559 ) (4,860,354 ) (*) ROU - Right-of-use assets Consolidated statement of net income (loss) For the year ended December 31, 2018 For the year ended December 31, 2017 As reported IFRS 16 As adjusted As reported IFRS 16 As adjusted Operating revenue Cargo and other revenue (f) 483,225 (96,293 ) 386,932 1,094,157 (84,666 ) 1,009,491 Operating expense Maintenance materials and repairs (d) (504,477 ) 254,372 (250,105 ) (568,144 ) 83,988 (484,156 ) Depreciation and amortization (a), (j) (324,902 ) (959,148 ) (1,284,050 ) (299,793 ) (763,585 ) (1,063,378 ) Other operating expenses, net (h) (875,148 ) (6,268 ) (881,416 ) (572,497 ) (4,078 ) (576,575 ) Other operating expenses, net - aircraft and other rent (a) (1,509,947 ) 1,475,513 (34,434 ) (1,181,731 ) 1,146,112 (35,619 ) Financial result Financial income (e) 41,393 33,129 74,522 94,805 33,467 128,272 Financial expense (a), (j) (410,207 ) (684,621 ) (1,094,828 ) (524,033 ) (554,565 ) (1,078,598 ) Foreign currency exchange, net (a), (e), (j) (194,706 ) (1,111,357 ) (1,306,063 ) 57,871 (23,012 ) 34,859 Result from related parties transactions, net (e) 342,083 39,642 381,725 194,351 (17,376 ) 176,975 Income tax Income tax expense (170,604 ) (977 ) (171,581 ) (71,680 ) 79,189 7,509 Net income (loss) 420,277 (1,056,008 ) (635,731 ) 529,039 (104,526 ) 424,513 Basic net income per common share – R$ 0.02 (0.05 ) (0.03 ) 0.02 (0.00 ) 0.02 Diluted net income per common share – R$ 0.02 (0.05 ) (0.03 ) 0.02 (0.00 ) 0.02 Basic net income per preferred share – R$ 1.24 (3.13 ) (1.88 ) 1.68 (0.33 ) 1.35 Diluted net income per preferred share – R$ 1.23 (3.13 ) (1.88 ) 1.64 (0.33 ) 1.32 Cash Flows As IFRS 16 As adjusted As IFRS 16 As Cash flows from operating activities Net income (loss) for the period 420,277 (1,056,008 ) (635,731 ) 529,039 (104,526 ) 424,513 Adjustments to reconcile net loss to cash flows provided by (used in) operating activities Depreciation and amortization 324,902 959,148 1,284,050 299,793 763,585 1,063,378 Exchange (gain) and losses on assets and liabilities denominated in foreign currency 90,141 1,153,741 1,243,882 (62,236 ) 24,245 (37,991 ) Interest (income) and expenses on assets and liabilities 182,274 684,621 866,895 222,127 554,343 776,470 Deferred income tax and social contribution 170,604 977 171,581 71,680 (79,189 ) (7,509 ) Changes in operating assets and liabilities Sublease receivables – 4,854 4,854 – 46,859 46,859 Prepaid expenses (71,723 ) 21,248 (50,475 ) (20,017 ) 10,038 (9,979 ) Other assets (288,409 ) 78,107 (210,302 ) (141,108 ) 39,412 (101,696 ) Accounts payable 142,631 103,154 245,785 (93,524 ) (1,573 ) (95,097 ) Other liabilities 31,639 (74,319 ) (42,680 ) (5,689 ) 58,021 52,332 Interest paid (214,671 ) (630,626 ) (845,297 ) (301,943 ) (519,230 ) (821,173 ) Cash flows from investing activities Acquisition of property and equipment (754,637 ) (331,805 ) (1,086,442 ) (589,497 ) (105,535 ) (695,032 ) Cash flows from financing activities Loan proceeds – – – 1,750,111 (39,461 ) 1,710,650 Loan payment (530,472 ) (216,759 ) (747,231 ) (889,066 ) (53,222 ) (942,288 ) Lease payment (385,906 ) (696,333 ) (1,082,239 ) (201,246 ) (593,764 ) (795,010 ) a) The application of IFRS 16 to leases previously classified as operating leases under IAS 17, resulted in the recognition of right-of-use b) Finance lease aircraft, previously recognized in property, plant and equipment, and are now presented as a right-of-use c) Finance lease liabilities, previously recognized as loans and financing, are now presented as lease liabilities, d) Heavy maintenance and structural checks expenses related to aircraft under operating lease were previously recorded under Maintenance materials and repais expenses. Under IFRS 16, these expenses are capitalized and depreciated. e) The Company, as a lessor, has classified its sublease agreements as finance leases and operating leases, dependending on the extent to which the lease transfers the risks and benefits inherent to the asset or right-of-use. For subleases classified as finance subleases, the leased assets have been de-recognized and a sublease receivables recorded. The provision for onerous contract of the 7 aircraft subleased to TAP, previously required under IAS 17 (Note 9), and was adjusted to reflect only the non avoidable costs non lease related. The revenue recorded for finance leases consists only of financial income and the sublease receivable balance is adjusted each accounting period for change to foreign exchange rates. f) For subleases classified as operating subleases, the Company continues to recognize the right-of-use asset, which continues to depreciate in accordance with the Company’s policy. Sublease revenue is recognized throught the sublease under the heading “Cargo and other revenues”. g) The Company had prepaid rent and maintenance expenses which have been incorporated in the right-of-use asset balances. h) The Company had deferred sale and leaseback losses which, upon transition, were recognized as a loss at the time of the transaction and corresponding amortization expenses previously recognized under IAS 17 were reversed. i) Deferred tax assets are recognized only to the extent that recovery is probable. j) Costs resulting from maintenance events that will be carried out immediately before the aircraft is returned to lessors (defined as restoration events under IFRS 16), are recognized as provisions from the beginning of the contract, provided that they can be estimated reasonably, against the recognition of a right - - The Company’s aircraft lease rental payments are predominantly denominated in USD. While the Company’s foreign currency cash flow risk for lease rental payments are unchanged, the adoption of IFRS 16 will result in foreign currency denominated lease liabilities recognized on the balance sheet revaluing in response to exchange rate fluctuations in the USD/BRL exchange rate. Amendments to IFRS 9: Prepayment Features with Negative Compensation Under IFRS 9, a debt instrument can be measured at amortized cost or at fair value through other comprehensive income, provided that the contractual cash flows are solely payments of principal and interest on the principal amount outstanding (the SPPI criterion) and the instrument is held within the appropriate business model for that classification. The amendments to IFRS 9 clarify that a financial asset passes the SPPI criterion regardless of an event or circumstance that causes the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination of the contract. These amendments had no impact on the consolidated financial statements of the Company. Amendments to IAS 19: Plan Amendment, Curtailment or Settlement The amendments to IAS 19 address the accounting when a plan amendment, curtailment or settlement occurs during a reporting period. The amendments specify that when a plan amendment, curtailment or settlement occurs during the annual reporting period, an Company is required to determine the current service cost for the remainder of the period after the plan amendment, curtailment or settlement, using the actuarial assumptions used to remeasure the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event. A Company is also required to determine the net interest for the remainder of the period after the plan amendment, curtailment or settlement using the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event, and the discount rate used to remeasure that net defined benefit liability (asset). The amendments had no impact on the consolidated financial statements of the Company as it did not have any plan amendments, curtailments, or settlements during the period. Amendments to IAS 28: Long-term interests in associates and joint ventures The amendments clarify that a Company applies IFRS 9 to long-term interests in an associate or joint venture to which the equity method is not applied but that, in substance, form part of the net investment in the associate or joint venture (long-term interests). This clarification is relevant because it implies that the expected credit loss model in IFRS 9 applies to such long-term interests. The amendments also clarified that, in applying IFRS 9, a Company does not take account of any losses of the associate or joint venture, or any impairment losses on the net investment, recognized as adjustments to the net investment in the associate or joint venture that arise from applying IAS 28 Investments in Associates and Joint Ventures These amendments had no impact on the consolidated financial statements as the Company does not have longterm interests in its associate and joint venture. IFRIC Interpretation 23 Uncertainty over Income Tax Treatment The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes • Whether a Company considers uncertain tax treatments separately • The assumptions a Company makes about the examination of tax treatments by taxation authorities • How a Company determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates • How a Company considers changes in facts and circumstances The Company determines whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments and uses the approach that better predicts the resolution of the uncertainty. The Company applies significant judgement in identifying uncertainties over income tax treatments. Since the Company operates in a complex multinational environment, it assessed whether the Interpretation had an impact on its consolidated financial statements. Upon adoption of the Interpretation, the Company considered whether it has any uncertain tax positions, particularly those relating to transfer pricing. The Company’s and the subsidiaries’ tax filings in different jurisdictions include deductions related to transfer pricing and the taxation authorities may challenge those tax treatments. The Company determined, based on its tax compliance and transfer pricing study that it is probable that its tax treatments (including those for the subsidiaries) will be accepted by the taxation authorities. The Interpretation did not have an impact on the consolidated financial statements of the Company. Annual Improvements 2015-2017 Cycle IFRS 3 Business Combinations The amendments clarify that, when a Company obtains control of a business that is a joint operation, it applies the requirements for a business combination achieved in stages, including remeasuring previously held interests in the assets and liabilities of the joint operation at fair value. In doing so, the acquirer remeasures its entire previously held interest in the joint operation. A Company applies those amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2019, with early application permitted. These amendments had no impact on the consolidated financial statements of the Company as there is no transaction where joint control is obtained. IFRS 11 Joint Arrangements A Company that participates in, but does not have joint control of, a joint operation might obtain joint control of the joint operation in which the activity of the joint operation constitutes a business as defined in IFRS 3. The amendments clarify that the previously held interests in that joint operation are not remeasured. A Company applies those amendments to transactions in which it obtains joint control on or after the beginning of the first annual reporting period beginning on or after January 1, 2019, with early application permitted. These amendments had no impact on the consolidated financial statements of the Company as there is no transaction where a joint control is obtained. IAS 12 Income Taxes The amendments clarify that the income tax consequences of dividends are linked more directly to past transactions or events that generated distributable profits than to distributions to owners. Therefore, a Company recognizes the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where it originally recognized those past transactions or events. Company applies the amendments for annual reporting periods beginning on or after January 1, 2019, with early application permitted. When the Company first applies those amendments, it applies them to the income tax consequences of dividends recognized on or after the beginning of the earliest comparative period. Since the Company’s current practice is in line with these amendments, they had no impact on the consolidated financial statements of the Company. IAS 23 Borrowing Costs The amendments clarify that a Company treats as part of general borrowings any borrowing originally made to develop a qualifying asset when substantially all of the activities necessary to prepare that asset for its intended use or sale are complete. The Company applies the amendments to borrowing costs incurred on or after the beginning of the annual reporting period in which the Company first applies those amendments. Company applies those amendments for annual reporting periods beginning on or after January 1, 2019, with early application permitted. Since the Company’s current practice is in line with these amendments, they had no impact on the consolidated financial statements of the Company. |
Standards issued but not yet effective | 3.20 . Standards issued but not yet effective Amendments to IFRS 3: Definition of a Business In October 2018, the IASB issued amendments to the definition of a business in IFRS 3 Business Combinations Since the amendments apply prospectively to transactions or other events that occur on or after the date of first application, the Group will not be affected by these amendments on the date of transition. Amendments to IAS 1 and IAS 8: Definition of Material In October 2018, the IASB issued amendments to IAS 1 Presentation of Financial Statements Accounting Policies, Changes in Accounting Estimates and Errors The amendments to the definition of material is not expected to have a significant impact on the Company consolidated financial statements. Amendments to IFRS 9 – Financial Instruments, IAS 39 – Financial Instruments: Recognition and Measurement and IFRS 7 – Financial Instruments: Disclosures Due to the changes in the interest rates used as market references – IBOR (Interbank Offered Rate), that will be terminated in future periods, there may be uncertainties in the evaluation of hedge accounting structures. Regulatory changes aim at minimizing possible impacts in these structures in the current scenario of prereplacement of rates. These changes are effective for the years beginning January 1, 2020. No significant impacts have been identified on the Consolidated Financial Statements of Company. IFRS 17 Insurance Contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts IFRS 17 is effective for reporting periods beginning on or after January 1, 2021, with comparative figures required. This standard is not applicable to the Company. |
Operations (Tables)
Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Equity Interest in Subsidiaries of the Company | The consolidated financial statements are comprised of the individual financial statements of the entities as presented below: % equity interest Entities Main activities Country of December 31, December 31, Azul Linhas Aéreas Brasileiras S.A. (ALAB) Airline operations Brazil 100.0% 100.0% Azul Finance LLC (a) Aircraft financing United States 100.0% 100.0% Azul Finance 2 LLC (a) Aircraft financing United States 100.0% 100.0% Blue Sabiá LLC (a) Aircraft financing United States 100.0% 100.0% ATS Viagens e Turismo Ltda. (a) Package holidays Brazil 99.9% 99.9% Azul SOL LLC (a) Aircraft financing United States 100.0% 100.0% Azul Investment LLP (a) Group financing United States 100.0% 100.0% Fundo Garoupa (b) Exclusive investment fund Brazil 100.0% 100.0% Fundo Safira (a) Exclusive investment fund Brazil 100.0% 100.0% Canela Investments LLC (Canela) (a) (c) Aircraft financing United States 100.0% 100.0% Canela 336 LLC (d) (h) Aircraft financing United States — 100.0% Canela 407 LLC (d) Aircraft financing United States 100.0% 100.0% Canela 429 LLC (d) Aircraft financing United States 100.0% 100.0% Canela Turbo Three LLC (d) Aircraft financing United States 100.0% 100.0% Daraland S.A. (a) Holding Uruguay 100.0% 100.0% Encenta S.A. (Azul Uruguai) (e) Airline operations Uruguay 100.0% 100.0% TudoAzul S.A. Loyalty programs Brazil 100.0% 100.0% Cruzeiro Participações S.A Participation in others societies Brazil 99.9% 99.9% Global AzulAirProjects, SGPS, S.A. (Global) (g) Participation in others societies China 45.45% — (a) Azul’s investment is held indirectly through ALAB. (b) Azul’s investment is held 4% directly and 96% through ALAB. (c) Transfer of ownership from Azul to ALAB on December 1, 2017. (d) ALAB’s investments are held indirectly through Canela. (e) Investments are held indirectly through Daraland. (f) Subsidiary incorporated on February 6, 2018. (g) The shares held by HACAIL were transferred to Global on July 1, 2019. (h) Subsidiary ended August 15, 2019 |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [Line Items] | |
Summary of Property and Equipment | Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows: Estimated useful lives Aircraft 12 years Furniture and fixtures 5 years Aircraft equipment 12 years Computer equipment and peripherals 5 years Tools 5 years Heavy maintenance – engines 3 to Heavy maintenance – structural checks 2 to 10 years Engines 12 years Leasehold improvements 10 years Simulators 20 years Vehicles 5 years |
Summary of Consolidated Statement of Net Income and Balance Sheet and Cash Flows | The impact of IFRS 16 adoption is presented as follows: December 31,2018 December 31,2017 January 01,2017 As reported IFRS 16 As adjusted As reported IFRS 16 As adjusted As reported IFRS 16 As Consolidated Balance Sheets Asset Current assets Sublease receivable (e) — 73,671 73,671 — 57,768 57,768 — 52,278 52,278 Prepaid expenses (g) 163,829 (48,376 ) 115,453 109,784 (27,128 ) 82,656 97,501 (23,997 ) 73,504 Other-current assets (h) 111,714 (1,091 ) 110,623 199,225 (418 ) 198,807 — — — Non-current Sublease receivable (e) — 288,067 288,067 — 308,824 308,824 — 361,173 361,173 Other non-current 520,723 (123,325 ) 397,398 215,707 (45,891 ) 169,816 ROU - leased aircraft and other — 4,926,326 4,926,326 — 4,377,725 4,377,725 — 4,063,048 4,063,048 ROU - maintenance of leased — 632,900 632,900 — 374,384 374,384 — 115,259 115,259 Property, plant and equipment (b) 3,289,219 (1,446,980 ) 1,842,239 3,325,535 (1,444,764 ) 1,880,771 3,439,980 (1,318,328 ) 2,121,652 Liabilities and equity Current liabilities Loans and financing (c) 335,051 (176,238 ) 158,813 568,234 (149,036 ) 419,198 985,238 (151,825 ) 833,413 Lease liabilities (a), (c) — 1,237,909 1,237,909 — 914,600 914,600 — 790,819 790,819 Accounts payable (e) 1,166,291 121,370 1,287,661 953,534 18,216 971,750 1,034,317 19,789 1,054,106 Provisions (j) — 36,083 36,083 — — — — — — Non-current Loans and financing (c) 3,370,971 (773,658 ) 2,597,313 2,921,653 (762,412 ) 2,159,241 3,049,257 (850,129 ) 2,199,128 Lease liabilities (a), (c) — 7,681,837 7,681,837 — 6,428,893 6,428,893 — 6,242,168 6,242,168 Deferred income taxes (i) 443,894 (150,683 ) 293,211 326,911 (184,809 ) 142,102 181,462 (96,904 ) 84,558 Provisions (j), (e) 80,984 632,957 713,941 73,198 479,957 553,155 76,353 402,644 478,997 Other non-current liabilities (e), (h) 321,139 5,353 326,492 343,041 79,672 422,713 377,924 21,642 399,566 Equity Other comprehensive income (i) (117,324 ) (36,645 ) (153,969 ) (11,192 ) (3,496 ) (14,688 ) (33,785 ) (12,212 ) (45,997 ) Accumulated losses (836,214 ) (4,277,093 ) (5,113,307 ) (1,214,756 ) (3,221,085 ) (4,435,841 ) (1,743,795 ) (3,116,559 ) (4,860,354 ) (*) ROU - Right-of-use assets Consolidated statement of net income (loss) For the year ended December 31, 2018 For the year ended December 31, 2017 As reported IFRS 16 As adjusted As reported IFRS 16 As adjusted Operating revenue Cargo and other revenue (f) 483,225 (96,293 ) 386,932 1,094,157 (84,666 ) 1,009,491 Operating expense Maintenance materials and repairs (d) (504,477 ) 254,372 (250,105 ) (568,144 ) 83,988 (484,156 ) Depreciation and amortization (a), (j) (324,902 ) (959,148 ) (1,284,050 ) (299,793 ) (763,585 ) (1,063,378 ) Other operating expenses, net (h) (875,148 ) (6,268 ) (881,416 ) (572,497 ) (4,078 ) (576,575 ) Other operating expenses, net - aircraft and other rent (a) (1,509,947 ) 1,475,513 (34,434 ) (1,181,731 ) 1,146,112 (35,619 ) Financial result Financial income (e) 41,393 33,129 74,522 94,805 33,467 128,272 Financial expense (a), (j) (410,207 ) (684,621 ) (1,094,828 ) (524,033 ) (554,565 ) (1,078,598 ) Foreign currency exchange, net (a), (e), (j) (194,706 ) (1,111,357 ) (1,306,063 ) 57,871 (23,012 ) 34,859 Result from related parties transactions, net (e) 342,083 39,642 381,725 194,351 (17,376 ) 176,975 Income tax Income tax expense (170,604 ) (977 ) (171,581 ) (71,680 ) 79,189 7,509 Net income (loss) 420,277 (1,056,008 ) (635,731 ) 529,039 (104,526 ) 424,513 Basic net income per common share – R$ 0.02 (0.05 ) (0.03 ) 0.02 (0.00 ) 0.02 Diluted net income per common share – R$ 0.02 (0.05 ) (0.03 ) 0.02 (0.00 ) 0.02 Basic net income per preferred share – R$ 1.24 (3.13 ) (1.88 ) 1.68 (0.33 ) 1.35 Diluted net income per preferred share – R$ 1.23 (3.13 ) (1.88 ) 1.64 (0.33 ) 1.32 Cash Flows As IFRS 16 As adjusted As IFRS 16 As Cash flows from operating activities Net income (loss) for the period 420,277 (1,056,008 ) (635,731 ) 529,039 (104,526 ) 424,513 Adjustments to reconcile net loss to cash flows provided by (used in) operating activities Depreciation and amortization 324,902 959,148 1,284,050 299,793 763,585 1,063,378 Exchange (gain) and losses on assets and liabilities denominated in foreign currency 90,141 1,153,741 1,243,882 (62,236 ) 24,245 (37,991 ) Interest (income) and expenses on assets and liabilities 182,274 684,621 866,895 222,127 554,343 776,470 Deferred income tax and social contribution 170,604 977 171,581 71,680 (79,189 ) (7,509 ) Changes in operating assets and liabilities Sublease receivables – 4,854 4,854 – 46,859 46,859 Prepaid expenses (71,723 ) 21,248 (50,475 ) (20,017 ) 10,038 (9,979 ) Other assets (288,409 ) 78,107 (210,302 ) (141,108 ) 39,412 (101,696 ) Accounts payable 142,631 103,154 245,785 (93,524 ) (1,573 ) (95,097 ) Other liabilities 31,639 (74,319 ) (42,680 ) (5,689 ) 58,021 52,332 Interest paid (214,671 ) (630,626 ) (845,297 ) (301,943 ) (519,230 ) (821,173 ) Cash flows from investing activities Acquisition of property and equipment (754,637 ) (331,805 ) (1,086,442 ) (589,497 ) (105,535 ) (695,032 ) Cash flows from financing activities Loan proceeds – – – 1,750,111 (39,461 ) 1,710,650 Loan payment (530,472 ) (216,759 ) (747,231 ) (889,066 ) (53,222 ) (942,288 ) Lease payment (385,906 ) (696,333 ) (1,082,239 ) (201,246 ) (593,764 ) (795,010 ) a) The application of IFRS 16 to leases previously classified as operating leases under IAS 17, resulted in the recognition of right-of-use b) Finance lease aircraft, previously recognized in property, plant and equipment, and are now presented as a right-of-use c) Finance lease liabilities, previously recognized as loans and financing, are now presented as lease liabilities, d) Heavy maintenance and structural checks expenses related to aircraft under operating lease were previously recorded under Maintenance materials and repais expenses. Under IFRS 16, these expenses are capitalized and depreciated. e) The Company, as a lessor, has classified its sublease agreements as finance leases and operating leases, dependending on the extent to which the lease transfers the risks and benefits inherent to the asset or right-of-use. For subleases classified as finance subleases, the leased assets have been de-recognized and a sublease receivables recorded. The provision for onerous contract of the 7 aircraft subleased to TAP, previously required under IAS 17 (Note 9), and was adjusted to reflect only the non avoidable costs non lease related. The revenue recorded for finance leases consists only of financial income and the sublease receivable balance is adjusted each accounting period for change to foreign exchange rates. f) For subleases classified as operating subleases, the Company continues to recognize the right-of-use asset, which continues to depreciate in accordance with the Company’s policy. Sublease revenue is recognized throught the sublease under the heading “Cargo and other revenues”. g) The Company had prepaid rent and maintenance expenses which have been incorporated in the right-of-use asset balances. h) The Company had deferred sale and leaseback losses which, upon transition, were recognized as a loss at the time of the transaction and corresponding amortization expenses previously recognized under IAS 17 were reversed. i) Deferred tax assets are recognized only to the extent that recovery is probable. j) Costs resulting from maintenance events that will be carried out immediately before the aircraft is returned to lessors (defined as restoration events under IFRS 16), are recognized as provisions from the beginning of the contract, provided that they can be estimated reasonably, against the recognition of a right - - |
Financial risk management obj_2
Financial risk management objectives and policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [Line Items] | |
Summary of Effects of Hedges Designated for Hedge Accounting in Debt | The table below shows the effects of our hedges designated as of December 31, 2019 Book value Fair Value – hedge Consolidated post Denominated in foreign currency - US$ Aircraft and engine acquisition 896,232 (10,971 ) 885,261 Working capital 1,727,882 (303,507 ) 1,424,375 Denominated in local currency - R$ Aircraft and engine acquisition (FINAME) 164,280 (3,309 ) 160,971 Working capital 37,355 — 37,355 Finance lease — — — Total in R$ 2,825,749 (317,787 ) 2,507,962 |
Summary of Indebtedness Related to Working Capital Denominated in Foreign Currency Designated as Hedge Accounting (Exchanging Exposure for Local Currency) contracted | The table below shows the indebtedness related to working capital denominated in foreign currency, designated as hedge accounting, considering the effects of the derivative instruments (exchanging the exposure for local currency) contracted by the Company: Risk Type of hedge Hedged Item Nominal amount Hedge Instrument Nominal December 31, 2019 Carrying Fair Value – hedge Debt 1) Senior Notes Azul LLP Foreign exchange risk Cash Flow Hedge Principal US$ on Senior Notes Azul LLP US$ 400 million Currency Options - Floor 3,2865 Cap 4,7500 US$ 400 million 1,605,914 (282,760 ) 1,323,154 2) Proceeds in foreign currency Interest rate swap and foreign exchange risk Fair value hedge Principal & Interest on 4.131 Transaction US$30 million IRS - Interest Rate Swap (receives US Libor3M + spread & pays 108% CDI) 98,940 121,968 (20,747 ) 101,221 Total 1,727,882 (303,507 ) 1,424,375 |
Summary of Indebtedness Related to Aircraft Acquisition Denominated in Foreign Currency Designated as Hedge Accounting (Exchanging Exposure for Local Currency) Contracted | The table below shows the indebtedness related to aircraft acquisition denominated in foreign currency, designated as hedge accounting, considering the effects of the derivative instruments (exchanging the exposure for local currency) contracted by the Company: Risk Type of hedge Hedged Item Nominal amount Hedge Instrument Nominal amount December 31, 2019 Carrying Fair Value – hedge Debt Aircraft acquisition Interest rate swap and foreign exchange risk Cash Flow Hedge Principal US$ on OPIC US$79 million Currency Options - Floor 3,8070 Cap 4,7500 US$79 million 594,586 (10,971 ) 583,615 Interest rate swap and foreign exchange risk Fair value hedge Principal & Interest R$76,200 IRS - Interest Rate Swap (fixed 6% to 58% and 61% of CDI) R$76,200 44,249 (3,309 ) 40,940 638,835 (14,280 ) 624,555 |
Schedule of Nominal Foreign Exchange Exposure | The Company’s nominal foreign exchange exposure is shown below: Exposure to U.S. dollar Exposure to Euro December 31, December 31, 2019 2018 (Restated) 2019 2018 Assets Cash and cash equivalents and short-term Investments 289,297 356,174 — — Security deposits and maintenance reserves 1,613,221 1,513,963 — — Sublease receivables 279,504 361,738 — — Long-term investments 160,871 — 1,236,828 1,287,781 Financial instruments 121,968 116,564 — — Other assets 244,355 122,456 — — Total assets 2,709,216 2,470,895 1,236,828 1,287,781 Liabilities Accounts payable (424,411 ) (455,777 ) — — Loans and financing (*) (2,624,114 ) (1,756,989 ) — — Leas e (12,034,392 ) (8,948,314 ) — — Other liabilities (688,134 ) (44,925 ) — — Total liabilities (15,771,051 ) (11,206,005 ) — — Derivatives (NDF) – notional 2,940,333 2,186,356 — — Net exposure (10,121,502 ) (6,548,754 ) 1,236,828 1,287,781 (*) As of December 31, 2019, US dollar denominated working capital loans totaling R$2,158,933 were swapped to Brazilian Reais, yielding a non-realized gain of R$314,500 and resulting in a net US dollar exposure on Loans and Financing of R$465,181. |
Schedule of Financial Liabilities by Maturity | The schedule of financial liabilities held by the Company is as follows: December 31, 2019 Immediate Until 6 7 to 12 1 to 5 years More than Total Loans and financing 42,619 162,269 276,339 3,003,090 33,839 3,518,156 Lease liabilities 271,524 598,472 715,237 8,081,759 2,439,629 12,106,621 Accounts payable 975,465 277,388 123,997 — — 1,376,850 Accounts payable – Supplier finance 249,727 — — — — 249,727 Liabilities from derivative transaction 2,135 46,987 32,074 228,994 — 310,190 1,541,470 1,085,116 1,147,647 11,313,843 2,473,468 17,561,544 |
Schedule of Total Capital | The total capital as total net equity and net debt as detailed below: December 31, 2019 2018 (Restated) Equity (3,519,174 ) (1,150,038 ) Cash and cash equivalents (Note 6) (1,647,880 ) (1,169,136 ) Short-term investments (Note 7) (62,009 ) (517,423 ) Long-term investments (Note 24 (1,397,699 ) (1,287,781 ) Sublease receivable (Nota 9) (279,504 ) (361,738 ) Security deposits and maintenance reserves (Note 13) (1,651,533 ) (1,546,720 ) Loans and financing (Note 17) 3,518,156 2,756,126 Lease liabilities (Note 1 8 12,106,621 8,919,746 Net debt 10,586,152 6,793,074 Total capital 7,066,978 5,643,036 |
Interest rate risk [member] | |
Statement [Line Items] | |
Schedule of Sensitivity Analysis for Market Risk | We estimated the impact on profit and loss and equity for the year ended December 31, 2019 resulting from variation of 25% and 50% on the weighted average rates, as shown below: 25% -25% 50% -50% Interest expense 29,430 (29,430) 58,860 (58,860) |
Currency risk [member] | |
Statement [Line Items] | |
Schedule of Sensitivity Analysis for Market Risk | Exposure in US$ 25% -25% 50% -50% R$5.0384/US$ R$3.0230/US$ R$6.0461/US$ R$2.0154/US$ Effect on exchange rate variation (2,530,398) 2,530,398 (5,060,797) 5,060,797 Exposure in EUR 25% -25% 50% -50% R$5.6631/EUR R$3.3979/EUR R$6.7958/EUR R$2.2653/EUR Effect on exchange rate variation 309,207 (309,207) 618,414 (618,414) |
Commodity price risk [member] | |
Statement [Line Items] | |
Schedule of Sensitivity Analysis for Market Risk | Change in Oil prices in Reais 25% -25% 50% -50% Impact on fuel hedges 379,673 (261,317 ) 700,031 (582,002 ) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents are comprised of the following: December 31, 2019 2018 Cash and bank deposits 308,958 370,262 Cash equivalents Bank Deposit Certificate – CDB 1,317,388 480,052 Investments funds 21,534 318,822 1,647,880 1,169,136 |
Short term investments (Tables)
Short term investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Investments | Investments are comprised of: December 31, 2019 2018 Other short-term investments 21,243 16,039 Investment funds 40,766 501,384 62,009 517,423 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Trade and Other Receivables | December 31, 2019 2018 Trade and other receivables with customers 1,142,704 1,039,373 Trade and other receivables with others 37,878 42,406 1,180,582 1,081,779 Allowance for doubtful accounts (14,716 ) (12,723 ) 1,165,866 1,069,056 |
Schedule of Changes in the Allowance for Doubtful Accounts | The changes in the allowance for doubtful accounts are as follows : December 31, 2019 2018 Balance at the beginning of the year 12,723 6,925 Increases 5,532 7,505 Reversals (3,539 ) (1,707 ) Balance at the end of the year 14,716 12,723 |
Schedule of Aging of Accounts Receivables | The schedule of accounts receivables are as follows: December 31, 2019 2018 Not yet due 1,151,963 1,025,211 Up to 90 days 13,903 43,845 Over 91 days 14,716 12,723 1,180,582 1,081,779 |
Aircraft sublease receivables (
Aircraft sublease receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of subleased fifteen aircraft to TAP and the amounts receivable | The Company subleased fifteen aircraft to TAP and the amounts receivable are due as follows: December 31, 2019 2018 2019 — 102,660 2020 98,152 102,660 2021 86,657 91,908 2022 47,136 48,897 2023 44,154 42,446 After 2023 64,742 62,237 Lease receivables (gross) 340,841 450,808 Finance revenue (accrued) (61,337 ) (89,070 ) Lease receivables (net) 279,504 361,738 Current 75,052 73,671 Non-current 204,452 288,067 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Inventories | December 31, 2019 2018 Parts and maintenance materials 288,824 206,729 Catering and uniforms 5,768 9,351 Inventory provision (*) (33,727 ) (15,935 ) 260,865 200,145 (*) As of December 31, 2019, the amount of R$27,999 refers to the provision related to the acceleration of the fleet transformation. |
Prepaid expenses (Tables)
Prepaid expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Prepaid Expenses | December 31, 2019 2018 (Restated) Insurance premium 47,506 33,385 Aircraft and engine leases 39,989 28,234 Guarantee commission 16,332 20,682 Other 57,792 54,835 161,619 137,136 Current 139,403 115,453 Non-current 22,216 21,683 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Compensation for Key Management Personnel | Key management personnel include board of director members, officers and executive committee members. The compensation paid or payable to officers and directors services is as follows: For the year ended December 31, 2019 2018 201 7 Salaries and wages 22,187 16,275 17,377 Bonus 7,255 7,263 6,724 Share-based option plans 29,129 21,508 24,775 58,571 45,046 48,876 |
Security deposits and mainten_2
Security deposits and maintenance reserves (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Security Deposits and Maintenance Reserve Deposits | December 31, 2019 2018 Security deposits 152,635 225,230 Maintenance reserve deposits 1,498,898 1,321,490 1,651,533 1,546,720 Current assets 258,212 144,192 No n 1,393,321 1,402,528 |
Changes in Security Deposits and Maintenance Reserve Deposits | Presented below are the changes in the security deposits and maintenance reserve deposits balance: Maintenance reserves Security deposits Total Balance at December 31, 2017 1,078,135 180,992 1,259,127 Additions 317,698 39,593 357,291 Write-offs (31,132 ) (968 ) (32,100 ) Refunds/returns (236,987 ) (23,175 ) (260,162 ) Foreign exchanges variations 193,776 28,788 222,564 Balance at December 31, 2018 1,321,490 225,230 1,546,720 Additions 343,727 37,614 381,341 Write-offs (8,417 ) — (8,417 ) Refunds/returns (210,356 ) (113,137 ) (323,493 ) Foreign exchanges variations 52,454 2,928 55,382 Balance at December 31, 2019 1,498,898 152,635 1,651,533 Current assets 258,212 — 258,212 Non current assets 1,240,686 152,635 1,393,321 |
Property, equipment and right_2
Property, equipment and right of the use assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Property and Equipment | a) Breakdown December 31, 2019 December 31, 2018 (Restated) Cost Accumulated Net Net amount Leasehold improvements 296,728 (78,131 ) 218,597 93,285 Equipment and facilities 176,814 (106,235 ) 70,579 49,243 Vehicles 3,614 (1,535 ) 2,079 2,207 Furniture and fixtures 20,683 (15,119 ) 5,564 5,029 Aircraft equipment 1,856,138 (941,533 ) 914,605 1,039,473 Aircraft and engines 850,391 (349,392 ) 500,999 459,056 Advance payments for acquisition of aircraft 84,578 — 84,578 112,923 Construction in progress 171,839 — 171,839 81,023 3,460,785 (1,491,945 ) 1,968,840 1,842,239 |
Summary of Reconciliation of Changes in Property and Equipment | b) Changes in property and equipment balances are as follows Cost December 31, (Restated) Acquisitions Disposals/ Write-offs Transfers December 31, Leasehold improvements 146,315 124,181 (3,118 ) 29,350 296,728 Equipment and facilities 130,655 48,101 (2,091 ) 149 176,814 Vehicles 3,238 376 — — 3,614 Furniture and fixtures 18,797 1,891 (5 ) — 20,683 Aircraft equipment 1,378,352 566,152 (72,835 ) (15,531 ) 1,856,138 Aircraft and engines 629,473 146,527 (149,910 ) 224,301 850,391 Advance payments for acquisition of aircraft 112,923 55,649 (45,081 ) (38,913 ) 84,578 Construction in progress 81,023 319,275 — (228,459 ) 171,839 2,500,776 1,262,152 (273,040 ) (29,103 ) 3,460,785 Accumulated depreciation December 31, (Restated) Depreciation Disposals/ Write- Transfers Impairment December 31, Leasehold improvements (53,030 ) (25,157 ) 186 — (130 ) (78,131 ) Equipment and facilities (81,412 ) (17,265 ) 687 — (8,245 ) (106,235 ) Vehicles (1,031 ) (504 ) — — — (1,535 ) Furniture and fixtures (13,768 ) (1,356 ) 5 — — (15,119 ) Aircraft equipment (338,879 ) (143,550 ) 42,249 — (501,353 ) (941,533 ) Aircraft and engines (170,417 ) (33,822 ) 32,295 — (177,448 ) (349,392 ) (658,537 ) (221,654 ) 75,422 — (687,176 ) (1,491,945 ) |
Schedule of Right of Use Aircraft Lease And Others Explanatory | a) Breakdown December 31, 2019 December 31, 2018 (Restated) Cost Accumulated Net Net Amount Aircraft of operating lease 10,901,791 (4,619,858 ) 6,281,933 3,617,062 Aircraft of finance lease 1,169,636 (916,173 ) 253,463 924,272 Engines and simulators 484,597 (235,495 ) 249,102 143,829 Properties 114,167 (64,042 ) 50,125 54,150 Vehicles 10,238 (7,127 ) 3,111 2,521 Equipments 20,088 (15,584 ) 4,502 12,994 Transports 12,065 (12,065 ) — — Restoration of aircraft and engines 423,194 (178,020 ) 245,176 171,498 13,135,776 (6,048,364 ) 7,087,412 4,926,326 |
Schedule of Reconciliation Right of Use Assets Balances Explanatory | b) Changes in right of use assets balances Cost December 31, (Restated ) Acquisitions Disposals/ Write-offs Transfers December 31, Aircraft of operating lease 6,943,314 4,002,981 (42,570 ) (1,934 ) 10,901,791 Aircraft of finance lease 1,289,161 28,455 (75,623 ) (72,357 ) 1,169,636 Engines and simulators 336,731 147,866 — — 484,597 Properties 105,754 8,413 — — 114,167 Vehicles 7,999 2,239 — — 10,238 Equipments 20,767 171 (850 ) — 20,088 Transports — 12,065 — — 12,065 Restoration of aircraft and engines 283,542 139,652 — — 423,194 8,987,268 4,341,842 (119.043 ) (74,291 ) 13,135,776 Accumulated depreciation December 31, (Restated) Depreciations Disposals/ Write-offs Impairment Transfers December 31, Aircraft of operating lease (3,326,252 ) (875,170 ) 42,570 (461,006 ) — (4,619,858 ) Aircraft of finance lease (364,891 ) (52,848 ) 10,019 (536,341 ) 27,888 (916,173 ) Engines and simulators (192,902 ) (38,723 ) — (3,870 ) — (235,495 ) Properties (51,604 ) (12,438 ) — — — (64,042 ) Vehicles (5,478 ) (1,649 ) — — — (7,127 ) Equipments (7,773 ) (8,427 ) 616 — — (15,584 ) Transports — (12,065 ) — — — (12,065 ) Restoration of aircraft and engines (112,043 ) (33,503 ) — (32,474 ) — (178,020 ) (4,060,943 ) (1,034.823 ) 53,205 (1,033,691 ) 27,888 (6,048,364 ) |
Disclosure Of Quantitative Information About Right of use Maintenance Explanatory | a) Breakdown December 31, 2019 December 31, (Restated) Cost Accumulated Net Amount Net Amount Checks 201,712 (153,522 ) 48,190 73,977 Checks in progress 23,662 — 23,662 — Engines maintenance 1,149,551 (724,012 ) 425,539 558,923 1,374,925 (877,534 ) 497,391 632,900 b) Changes in right of use maintenance balances Cost December 31, (Restated) Acquisitions Disposals/ Write-offs Transfers December 31, Checks 143,866 63,493 (9,971 ) 4,324 201,712 Checks in progress — 45,527 (10,546 ) (11,319 ) 23,662 Engines maintenance 779,651 425,482 (67,585 ) 12,003 1,149,551 923,517 534,502 (88,102 ) 5,008 1,374,925 Accumulated Depreciation December 31, (Restated) Accumulated Disposals/ Write-offs Transfers Impairment December 31, 2019 Checks (69,889 ) (49,313 ) 3,101 — (37,421 ) (153,522 ) Engines maintenance (220,728 ) (255,043 ) 42,003 — (290,244 ) (724,012 ) (290,617 ) (304,356 ) 45,104 — (327,665 ) (877,534 ) |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Intangible Assets and Goodwill | a) Breakdown December 31, 2019 December 31, Cost Accumulated Net amount Net amount Goodwill (i) 753,502 — 753,502 753,502 Airport operating licenses (ii) 82,196 — 82,196 82,196 Software 489,904 (238,118 ) 251,786 180,858 1,325,602 (238,118 ) 1,087,484 1,016,556 |
Schedule of Changes in Intangible Assets | b) Changes in intangible assets balances are as follows Costs December 31, Acquisitions Disposals/ Written-off Transfers December 31, Goodwill (i) 753,502 — — — 753.502 Airport operating licenses (ii) 82,196 — — — 82,196 Software 357,457 132,447 — — 489,904 1,193,155 132,447 — — 1,325,602 Accumulated amortization December 31, Amortization Disposals/ Written-off Transfers December 31, Software (176,599 ) (61,519 ) — — (238,118 ) (176,599 ) (61,519 ) — — (238,118 ) (i) Refers to goodwill recorded in the acquisition of TudoAzul (former TRIP) in 2012. The amount of R$753,502 represents the excess of the consideration transferred over the fair value of the net assets acquired and liabilities assumed. (ii) As part of the purchase price allocation of TudoAzul (former TRIP) acquisition, the Company recognized a separate intangible asset for the airport operating licenses. These intangible assets were deemed to have an indefinite life. |
Summary of Variations in the Earnings Before Interest and Tax Margin and Nominal Discount Rate | The Company prepared a sensitivity analysis considering the variations in the Earnings Before Interest and Tax (“EBIT”) margin and the nominal discount rate as shown below: Variations Appreciation (depreciation) 1.0 % 0.0 % -1.0 % Discount rate before taxes 9.8 % 8.8 % 7.8 % EBIT -9.5 % -10.5 % -11.5 % |
Income tax and social contrib_2
Income tax and social contribution (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Income Tax and Social Contribution | a) Income tax and social contribution For the year ended December 31, 2019 2018 (Restated) 2017 (Restated) Loss before income tax and social contribution (2,536,265 ) (452,926 ) 414,129 Combined tax rate 34 % 34 % 34 % Income tax and social contribution statutory rate 862,330 153,995 (140,804 ) Adjustments to calculate the effective tax rate: Taxable profit on foreign subsidiaries (3,020 ) (21,867 ) (13,496 ) Exchange differences on foreign subsidiaries (7,321 ) 24,917 27,064 Unrecorded deferred tax on tax loss and on temporary differences (880,375 ) (400,187 ) 56,598 Deferred income tax on tax losses included in the PERT (*) 84,712 — 83,143 Permanent differences 76,958 65,971 (8,006 ) Other (105 ) (5,634 ) 5,885 Total income tax and social contribution expenses 133,179 (182,805 ) 10,384 Current income tax and social contribution (2,228 ) (11,224 ) 2,875 Deferred income tax and social contribution 135,407 (171,581 ) 7,509 133,179 (182,805 ) 10,384 (*) Tax Recovery Program (“PERT”) |
Schedule of Breakdown of Deferred Income Tax and Social Contribution | b) Breakdown of deferred income tax and social contribution December 31, 2019 2018 (Restated) Deferred taxes On temporary differences Provision for tax, civil and labor risks 21,819 27,524 Deferred revenue of TudoAzul program (148,963 ) (132,740 ) Aircraft lease expense 1,312,552 1,371,421 Depreciation of aircraft and engines (48,899 ) (33,973 ) Exchange rate (16,498 ) (13,397 ) Deferred gain related to aircraft sold 19,747 37,628 Cash flow hedge 53,977 52,349 Fair value of TAP convertible bonds (243,288 ) (274,520 ) Fair value of other investments (21,963 ) — Other provisions 116,810 — Financial instruments (201,738 ) (73,735 ) Impairment 989,242 — Fair value of aircraft — (397 ) Fair value of slots — (27,947 ) Other on business combination fair value adjustment — (2,707 ) Others 73,497 61,993 Net deferred tax (liabilities) 1,906,297 991,500 Net deferred tax assets / (liabilities) on temporary adjustments recognized (259,785 ) (311,391 ) Deferred tax assets recognized on net operating losses 17,270 18,180 Net deferred tax assets / (liabilities) – recognized (242,516 ) (293,211 ) |
Schedule of Income Tax Losses Offsetting Against Future Taxable Profits | The Company has income tax losses that are available indefinitely for offsetting against future taxable profits, as follows: December 31, 2019 2018 Net tax losses 1,971,779 1,829,244 Income tax loss carryforwards (25%) 492,945 457,311 Social contribution negative base tax carryforwards (9%) 177,460 164,632 |
Loans and financing (Tables)
Loans and financing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Loans and Financing | December 31 2019 2018 (Restated) Loans 2,825,749 2,025,607 Debentures 692,407 730,519 3,518,156 2,756,126 Current 481,227 158,813 Non-current 3,036,929 2,597,313 |
Schedule of Loans | Loans Fair value of designated December 31, December 31, Guarantees Interest Final 2019 2018 (Restated) 2019 2018 (Restated) Denominated in foreign currency - US$ Aircraft and engine acquisition Chattel mortgage LIBOR plus “spread” between 2.55% and 3.6% p.a. and fixed interest between 5.37% and 6.07%/ US Treasury + 3,25% p.a. 03/2029 896,232 100,042 (10,971 ) — Working capital (*) (a) Receivables of Azul and no guarantees LIBOR plus fixed interest of 0.88% p.a. and fixed of 5.90%p.a 10/2024 1,727,882 1,656,947 (303,507 ) (266,404 ) Denominated in local currency - R$ Aircraft and engine acquisition (FINAME) (**) Investments and chattel mortgage of aircraft Fixed between 6.00% to 6.50% p.a. and SELIC plus 5.46% p.a. 05/2025 164,280 192,861 (3,309 ) — Working capital Bail letter 5.0% fixed p.a and 125% to 126% of CDI 07/2021 37,355 73,376 — — Finance lease Chattel mortgage CDI plus fixed spread between 3.97% p.a. and 4.91% p.a. 11/2019 — 2,381 — — Total in R$ 2,825,749 2,025,607 (317,787 ) (266,404 ) Current position 233,487 119,676 — — Non-current 2,592,262 1,905,931 (317,787 ) (266,404 ) (*) Ilustrates the effect of hedges designated for hedge accounting, which are detailed in Note 2 4 (**) FINAME are a special credit line from BNDES (the Brazilian development bank). |
Schedule of Senior Notes Swaps | The details of this transaction is following: Options Structure Coupon Payments Principal Payment Period Apr/2018 to Apr/2019 Oct/2019 to Oct/2024 Oct/2024 Notional US$12 million US$12 million US$400 million Put option bought — 3.2865 N/A Call option bought N/A N/A 3.2865 Call option sold — 4.7500 4.7500 Senior notes Swap Currency US$ R$ Amount US$400 million R$1,314,600 Interest Fixed Floating Interest rate 5.875% 99.3% of CDI |
Schedule of Long Term Loans Maturity | b) Long term loans mature as follows: December 31, 2019 2018 (Restated) 2020 — 191,437 2021 202,798 59,875 2022 270,899 49,560 2023 258,422 37,016 After 2023 1,860,143 1,568,043 2,592,262 1,905,931 |
Schedule of Assets Serve as Guarantees to Secure the Loans | c) The following assets serve as guarantees to secure the financing agreements December 31, 2019 2018 (Restated) E used as collateral (Note 14) 7,285,497 5,144,219 |
Schedule of Debentures | Guarantees Interest Final December 31, 2019 2018 Eight issue Credit cards receivable CDI + 1.50% p.a. 01/2019 — 40,758 Nine issue Credit cards receivable 122% of CDI 12/2021 495,548 493,990 Tenth issue Credit cards receivable 117% of CDI 12/2023 196,859 195,771 Total 692,407 730,519 Current position 247,740 39,137 Non-current 444,667 691,382 |
Schedule of Long Term Debentures Maturity | Long term debentures mature as follows: December 31, 2019 2018 2020 — 296,338 2021 336,580 296,777 2022 89,044 49,131 2023 19,043 49,136 444,667 691,382 |
Schedule of Covenants Related to Leverage and Debt Coverage Ratios | Covenants relate to Ratios measured Ratios measured 9 th (i) adjusted debt coverage ratio (ICSD) equal or higher to 1.2; and (ii) leverage ratio equal or lower than 6.5. Annually 10 th Aircraft financing (i) adjusted debt coverage ratio (ICSD) equal or higher to 1.2; and (ii) leverage ratio equal or lower than 5.5. Quarterly |
Lease liabilities (Tables)
Lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Lease liabilities [Abstract] | |
Disclosure lease liabilities | December 31, 2019 2018 (Restated) Aircraft 11,686,481 8,582,974 Engine and simulators 347,911 254,227 Property 60,648 65,151 Vehicles 7,615 14,668 Equipments 3,089 2,726 Transports 877 — 12,106,621 8,919,746 Current liability 1,585,233 1,237,909 Non-current 10,521,388 7,681,837 |
Disclosure of reconciliation of liabilities arising from financing activities | The movement schedule for lease liabilities are as follows: Weighted December 31, (Restated) Additions Payments Interest Disposals Foreign December 31, Right - - Aircraft and engines 8.20 % 7,725,397 4,153,314 (1,865,472 ) 726,613 (24,775 ) 331,057 11,046,134 Others 7.64 % 82,545 22,888 (39,008 ) 8,628 (279 ) (2,544 ) 72,230 Right - - 6.15 % 1,111,804 32,188 (269,988 ) 70,767 — 43,486 988,257 Total 8,919,746 4,208,390 (2,174,468 ) 806,008 (25,054 ) 371,999 12,106,621 |
Summary of lease repayment period | The leases have an average repayment (in years) are as follows: December 31, 2019 2018 (Restated) Aircraft and engines Right-of-use leases without purchase option 8.26 7.33 Right-of-use leases with purchase option 4.24 5.22 |
Schedule of future minimum payments and the present value of the minimum leasing liabilities | The future minimum payments and the present value of the minimum leas e December 31, 2019 2018 2019 — 1,957,371 2020 2,481,457 1,828,394 2021 2,335,363 1,726,072 2022 2,406,701 1,798,733 2023 1,875,308 1,293,654 2024 1,560,055 992,525 After 2024 5,580,166 2,324,962 Minimum lease payments 16,239,050 11,921,711 Financial expenses (4,132,429 ) (3,001,965 ) Net present value of minimum lease payments 12,106,621 8,919,746 |
Schedule of amounts recognized in statement of net income loss | The following are the amounts recognized in statement of net income (loss): Consolidated 2019 2018 (Restated) 2017 (Restated) Depreciation expense of right-of-use assets (1,034,823 ) (973,084 ) (790,737 ) Interest expense on lease liabilities (806,008 ) (625,906 ) (556,781 ) Finance income on lease receivalbes 29,695 33,129 33,467 Expense relating to short-term leases (79,855 ) (34,434 ) (35,619 ) Total amount recognized (1,890,991 ) (1,600,295 ) (1,349,670 ) |
Accounts payable (Tables)
Accounts payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of accounts payable | December 31, 2019 2018 Local currency 1,202,166 994,662 Foreign currency 424,411 455,777 1,626,577 1,450,439 |
Air traffic liability (Tables)
Air traffic liability (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Air Traffic Liability | Air traffic liability is comprised of the following: December 31, 2019 2018 Advance ticket sales 1,408,272 1,099,978 TudoAzul program 685,982 572,474 2,094,254 1,672,452 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Changes in provisions | Return of Provision for Provision for Total Balance at December 31, 2017 479,957 73,198 — 553,155 Provisions recognized 44,199 70,438 — 171,701 Utilized provisions — (62,653 ) — (62,653 ) Amortization of financial expense 57,064 — — 57,064 Foreign exchanges variations 87,821 — — 87,821 Balance at December 31, 2018 (Restated) 669,041 80,983 — 750,024 Provisions recognized 139,652 100,241 1,129,866 1,369,759 Utilized provisions (333,420 ) (93,718 ) — (427,138 ) Amortization of financial expense 67,366 — 18,633 85,999 Foreign exchanges variations 28,036 — 6,672 34,708 Balance of December 31, 2019 570,675 87,506 1,155,171 1,813,352 Current 68,888 — 254,553 323,441 Non-current 501,787 87,506 900,618 1,489,911 |
Schedule of Changes in Taxes, Civil and Labor Provisions | These provisions are as follows: December 31, 2019 2018 Taxes 2,024 1,962 Civil 45,067 44,960 Labor 40,415 34,061 87,506 80,983 |
Schedule of Amounts of Claims for Which No Provision Recorded | The total amount of claims, which according to management represent losses that are reasonably possible but not probable, for which no provision was recorded are as follow: December 31, 2019 2018 Taxes 116,074 87,384 Civil 77,360 43,203 Labor 123,119 135,311 316,553 265,898 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Issued Capital and Authorized Shares, All Registered and Without Par Value | a) Issued capital and authorized shares, all registered and without par value Company’s capital is - R$ Common Preferred At December 31, 2019 2,243,215 928,965,058 329,568,166 At December 31, 2018 2,209,415 928,965,058 326,631,190 |
Schedule of Treasury Shares | Number of R$ At December 31, 2017 103,000 2,745 Purchased 447,000 12,179 Cancelled (217,020 ) (4,374 ) At December 31, 2018 332,980 10,550 Purchased 301,008 12,853 Cancelled (189,742 ) (7,838 ) December 31, 2019 444,246 15,565 |
Income (loss) per share (Tables
Income (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Income or Loss Per Common and Preferred Share | The following table shows the calculation of income or loss per common and preferred share in thousands, except for values per share: For the year ended December 31, 2019 2018 (Restated) 2017 (Restated) Numerator Net income ( loss ) (2,403,086 ) (635,731 ) 424,513 Denominator Weighted average number of common shares 928,965,058 928,965,058 928,965,058 Weighted average number of preferred shares 328,571,282 325,310,485 303,200,642 75 preferred shares (*) 75.0 75.0 75.0 Weighted average number of preferred equivalent shares (*) 340,957,483 337,696,686 315,586,842 Weighted average number of common equivalent shares (**) 25,571,811,221 25,327,251,414 23,669,013,177 Weighted average number of shares based payment 9,865,114 11,530,390 15,446,459 Weighted average number of shares that would have been issued at average market price 6,805,600 6,400,619 9,253,991 Basic net loss per common share (0.09 ) (0.03 ) 0.02 Diluted net loss per common share (0.09 ) (0.03 ) 0.02 Basic net loss per preferred share (7.05 ) (1.88 ) 1.35 Diluted net loss per preferred share (7.05 ) (1.88 ) 1.32 (*) Refers to a participation in the total equity value of the Company, calculated as if all 928,965,058 common shares outstanding had been converted into 12,386,200 preferred shares at the conversion ratio of 75 common shares to 1.0 preferred share. (**) Refers to a participation in the total equity value of the Company, calculated as if the weighted average preferred shares outstanding had been converted into common shares at the conversion ratio of 75 common shares to 1.0 preferred share |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Financial Instruments | The Company has the following financial instruments: Book value Fair value L December 31, December 31, 2019 2018 (Restated) 2019 2018 (Restated) Assets: Cash and cash equivalents (Note 6) 2 1,647,880 1,169,136 1,647,880 1,169,136 Trade and other receivables (Note 8) 2 1,165,866 1,069,056 1,165,866 1,069,056 Aircraft sublease receivables (Note 9) (*) 2 279,504 361,738 279,504 361,738 Short-term investments (Note 7) 2 62,009 517,423 62,009 517,423 Long term investments 3 1,397,699 1,287,781 1,397,699 1,287,781 Derivative financial instruments (*) 2 825,924 595,380 825,924 595,380 Liabilities: Accounts payable (Note 19) 2 1,626,577 1,450,439 1,626,577 1,450,439 Loans and financing (Note 17)(*) 2 3,518,156 2,756,126 3,504,754 2,742,359 Lease liabilities (Note 1 8 (*) 2 12,106,621 8,919,746 12,106,621 8,919,746 Derivative financial instruments (*) 2/3 310,190 440,994 310,190 440,994 (*) Includes current and non-current. |
Schedule of Derivative Long Term Investments | The Company has the following long term financial investments evaluated at fair value: December 31, 2019 2018 Bond TAP 1,236,828 1,287,781 Other investments (Note 12 ( g 160,871 — 1,397,699 1,287,781 |
Schedule of Level 3 Significant Unobservable Inputs Used in Fair Value Measurements | The significant unobservable inputs used in the fair value measurements categorised within Level 3 of the fair value hierarchy, together with a quantitative sensitivity analysis as of Non-listed Valuation technique Significant unobservable inputs Rate Sensitivity of the input to fair value (amounts in Discounted cash flow method Long-term growth rate for cash flows for subsequent years December 31, 2019: 2.5% (December 31, 2018: 1.9%) 10bps (2018 – 10bps) increase (decrease) in the growth rate would result in an increase (decrease) in the fair value of R$24 (December 31, 2018 - R$3) Cost of equity December 31, 2019: 13.6% (December 31, 2018: 12.2%) 50bps increase in cost of equity would result in a reduction in the fair value of R$18 (December 31, 2018 - R $ 50bps reduction in cost of equity would result in an increase in the fair value of R$20 (December 31, 2018 - R $ |
Schedule of Level 3 Financial Assets Reconciliation | Changes in the fair value of the TAP Convertible Bonds is detailed below: December 31, 2019 2018 Balance at the beginning of the period 1,287,781 835,957 Foreign currency exchange gain (loss) (*) 10,723 48,365 Interest accrual (Note 12. g 30,184 29,630 Net present value of debt component (Note 12. g 116,912 13,219 Fair value of call-option (Note 12. g (208,772 ) 360,610 Balance at the end of the period 1,236,828 1,287,781 (*) recorded in the “Foreign currency exchange, net” in the income statements line item. (**) recorded in the “Result from related parties transactions, net” in the income statements line item. |
Schedule of Changes In Fair Value Of Other Investments Explanatory | Changes in the fair value of other investments are detailed below: December 31, 2019 2018 Balance at the beginning of the period — — Acquisition 96,161 — Fair value of other investments (*) 64,710 — Balance at the end of the period 160,871 — (*) recorded in the “Result from related parties transactions, net” in the income statements line on the acquisition. |
Schedule of Derivative Financial Instruments | Derivative financial instruments December 31, 2019 December 31, 2018 Assets Liabilities Assets Liabilities Cash flow hedge Interest rate swap contract — (7,129 ) — (9,422 ) Foreign currency options 338,592 — 246,323 — Fair value hedge Interest rate swap contract 24,057 — 21,813 (1,732 ) Derivatives not designated as hedge Interest rate swap contract 203,636 (266,439 ) 93,606 (260,593 ) Forward foreign currency contract 203,148 (1,135 ) 233,638 (74 ) Heating oil forward contracts 56,491 — — (123,224 ) Foreign currency options — (35,487 ) — (45,949 ) 825,924 (310,190 ) 595,380 (440,994 ) |
Schedule of Financial Liabilities by Maturity | The maturity of the derivative financial instruments held by the Company is as follows: December 31, 2019 Immediate Until 6 7 to 12 1 to 5 years Total Assets from derivative transactions 3,354 89,580 75,214 657,776 825,924 Liabilities from derivative transactions (2,135 ) (46,987 ) (32,074 ) (228,994 ) (310,190 ) Total financial instruments 1,219 42,593 43,140 428,782 515,734 |
Schedule of Positions Related to Cash Flow Hedge | The positions were: December 31, 2019 Notional amount Asset position Liability Fair value Cash flow hedge: Loans and financing 40,872 LIBOR US$ Fixed rate (7,129) Foreign currency options 1,614,211 US$ R$ 338,592 1,655,083 331,463 December 31, 2018 Notional amount Asset position Liability Fair value Cash flow hedge: Loans and financing 57,805 LIBOR US$ Fixed rate (9,422 ) Foreign currency options 1,314,600 US$ R$ 246,323 1,372,405 236,901 |
Schedule of Changes in Other Comprehensive Loss (Cash Flow Hedge Reserve) | Changes in other comprehensive loss (cash flow hedge reserve) are detailed below: December 31, 2019 2018 (Restated) 2017 (Restated) Balance at the beginning of the period (153,969 ) (14,688 ) (33,785 ) Transactions settled during the period 4,389 6,444 6,435 New transactions recognized in income statement (7,353 ) (215,765 ) — Fair value adjustment (2,328 ) 70,040 12,662 Balance at the end of the period (159,261 ) (153,969 ) (14,688 ) |
Schedule of Fair Value of Financial Instruments | Assets measured at fair value December 31, Level 1 Level 2 Level 3 Financial assets at fair value Cash and cash equivalents (Note 6) 1,647,880 — 1,647,880 — Short-term investments 62,009 — 62,009 — Long-term investments (b) 1,397,699 — — 1,397,699 Interest rate swap contract - fair value hedge option (a) 24,057 — 24,057 — Interest rate swap contract- not designated as hedge 203,636 — 203,636 — Forward foreign currency contract 203,148 — 203,148 — Foreign currency options 338,592 — 338,592 — Fuel term contract 56,491 — 56,491 — Liabilities measured at fair value December 31, Level 1 Level 2 Level 3 Financial liabilities at fair value Interest rate swap contract - cash flow hedge (7,129 ) — (7,129 ) — Interest rate swap contract- not designated as hedge (266,439 ) — (266,439 ) — Foreign currency options (35,487 ) — (35,487 ) — Fuel term contract (1,135 ) — (1,135 ) — Assets measured at fair value December 31, Level 1 Level 2 Level 3 Financial assets at fair value Cash and cash equivalents (Note 6) 1,169,136 — 1,169,136 — Short-term investments 517,423 — 517,423 — Long-term investments (b) 1,287,781 — — 1,287,781 Interest rate swap contract - fair value option (a) 21,813 — 21,813 — Interest rate swap contract- not designated as hedge 93,606 — 93,606 — Forward foreign currency contract 233,638 — 233,638 — Foreign currency options 246,323 — 246,323 — Liabilities measured at fair value December 31, Level 1 Level 2 Level 3 Financial liabilities at fair value Interest rate swap contract - cash flow hedge (9,422 ) — (9,422 ) — Interest rate swap contract - fair value option (a) (1,732 ) — (1,732 ) — Interest rate swap contract- not designated as hedge (260,593 ) — (260,593 ) — Foreign currency options (45,949 ) — (45,949 ) — Forward foreign currency contract (74 ) — (74 ) — Heating oil forward contracts (123,224 ) — (123,224 ) — (a) Portion of the balances consist of loans from FINAME PSI, and standard FINAME presented at their value adjusted by the hedged risk, applying fair value hedge accounting rules. (b) The Company calculated the fair value of the call option based on a valuation for TAP and binomial model considering the term of option, discount rate and the market volatility of publicly traded comparable airlines, calculated on a 2 years average. The resulting amount of the binomial model calculated in Euros was converted into Reais using the period-end 24 |
Operating revenue (Tables)
Operating revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Operating Revenue | For the year ended December 31, 2019 2018 (Restated) 2017 (Restated) Revenue Passenger revenue 11,198,585 9,029,960 6,985,044 Cargo and other revenue 604,297 430,725 1,054,761 Gross revenue 11,802,882 9,460,685 8,039,805 Taxes levied on Passenger revenue (290,696 ) (359,828 ) (289,704 ) Cargo and other revenue (69,869 ) (43,793 ) (45,270 ) Total taxes (360,565 ) (403,621 ) (334,974 ) Net revenue 11,442,317 9,057,064 7,704,831 |
Financial result (Tables)
Financial result (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Financial Result | For year ended December 31, 2019 2018 (Restated) 2017 (Restated) Financial income Interest on short-term investments (a) 12,462 31,947 50,604 Sublease receivable 29,695 33,129 33,467 Other 29,914 9,446 44,201 72,071 74,522 128,272 Financial expenses Interest on loans (a) (195,688 ) (164,294 ) (235,184 ) Interest on lease (a) (732,723 ) (606,076 ) (484,300 ) Interest on finance lease (a) (73,284 ) (75,313 ) (72,481 ) Interest on factoring credit card and travel agencies receivables (13,477 ) (10,625 ) (36,188 ) Interest on other operations (129,954 ) (79,822 ) (110,375 ) Guarantee commission (30,977 ) (26,187 ) (24,880 ) Loan costs amortization (12,549 ) (23,169 ) (36,598 ) Amortization of financial expenses (88,015 ) (56,827 ) (41,439 ) Other (52,857 ) (52,515 ) (37,153 ) (1,329,524 ) (1,094,828 ) (1,078,598 ) Derivative financial instruments, net 325,452 298,094 (90,171 ) Foreign exchange result, net (391,905 ) (1,306,063 ) 34,859 Net financial expenses (1,323,906 ) (2,028,275 ) (1,005,638 ) (a) Interest and expenses on assets and liabilities, in the cash flow statement on December 31, 2019 - R$1,082,256 (December 31, 2018 - R$866,895 and December 31, 2017 – R$776,470) are registred in this lines. |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Purchase Commitments for the Acquisition of Aircraft | The Company has purchase commitments for the acquisition of 94 aircraft (December 31, 2018 – 94), under which the following futures payments will be made: December 31, 2019 2018 Up to one year 2,815,674 243,857 From one to five years 10,031,346 10,695,827 More than five years 2,625,245 3,960,657 15,472,265 14,900,341 The Company has purchase commitments for the acquisition of 53 aircraft (December 31, 2018 – 75), under which the following futures payments will be made: December 31, 2019 2018 Up to one year 195,981 218,775 From one to five years 2,963,355 3,386,676 More than five years 4,232,251 4,887,708 7,391,587 8,493,159 |
Share-based option plan (Tables
Share-based option plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [Line Items] | |
Summary of Measurement of Grant Date Fair Value of Share Options | The grant-date fair value of share options has been measured using the Black-Scholes model. Expected volatility has been calculated based on historical volatility of airline shares listed on stock exchanges in Brazil and Latin America. The inputs are mentioned below. First Option Plan 1 st 2 nd 3 rd Total options granted 5,032,800 1,572,000 656,000 Date of compensation committee Dec 11, 2009 Mar 24, 2011 April, 05, 2011 Total options outstanding 303,700 284,000 12,460 Option exercise price R$3.42 R$6.44 R$6.44 Option fair value as of grant date R$1.93 R$4.16 R$4.16 Estimated volatility of the share price 47.67% 54.77% 54.77% Expected dividend 1.10% 1.10% 1.10% Risk-free rate of return 8.75% 12.00% 12.00% Average remaining maturity (in years) — — — Maximum life of the option Undetermined Undetermined Undetermined Expected term considered for valuation 7 years 7 years 7 years Second Option Plan Third Option 1 st 2 nd 3 rd 4 th 1 st Total options granted 2,169,122 627,810 820,250 680,467 9,343,510 Date of compensation committee June 30, 2014 July 01, 2015 July 01, 2016 July 06, 2017 Mar 14, 2017 Total options outstanding 861,197 231,638 391,176 494,491 5,606,106 Option exercise price R$19.15 R$14.51 R$14.50 R$22.57 R$11.85 Option fair value as of grant date R$11.01 R$10.82 R$10.14 R$12.82 R$4.82 Estimated volatility of the share price 40.59% 40.59% 43.07% 43.35% 50.64% Expected dividend 1.10% 1.10% 1.10% 1.10% 1.10% Risk-free rate of return 12.46% 15.69% 12.21% 10.26% 11.32% Average remaining maturity (in years) — — 0.4 1.5 2.2 Maximum life of the option 8 years 8 years 8 years 10 years 5 years Expected term considered for valuation 4.5 years 4.5 years 4.5 years 5.5 years 5 years |
Summary of Changes in Stock Options and virtual stock options | Changes in stock options are disclosed below: Number of Weighted average (in reais) Balance as of December 31, 2017 16,250,687 R$ 11.69 Cancelled (182,388 ) R$ 18.48 Exercised (4,877,470 ) R$ 9.44 Balance as of December 31, 2018 11,190,829 R$ 12.55 Cancelled (69,085 ) R$ 20.70 Exercised (2,936,976 ) R$ 11.51 Balance as of December 31, 2019 8,184,768 R$ 12.85 Number of options exercisable as of: December 31, 2019 2,294,135 R$ 13.81 December 31, 2018 2,572,640 R$ 11.60 |
Summary of Fair Value of RSUs and Expense | 2 8 Information about the fair value of RSUs and expense Date of compensation Total shares Total shares Fair value as (in reais) 1 st June 30, 2014 487,670 7,934 R$ 21.00 2 nd July 01, 2015 294,286 8,094 R$ 21.00 3 rd July 01, 2016 367,184 75,527 R$ 21.00 4 th July 06, 2017 285,064 122,740 R$ 24.17 5 th August 07, 2018 291,609 205,099 R$ 24.43 6 th August 05, 2019 170,000 170,000 R$ 51.65 1,895,813 589,394 |
Summary of Changes in RSUs | Changes in RSU are disclosed below: Number of RSU As of December 31, 2017 809,946 Granted 291,609 Cancelled (72,303 ) Exercised (299,659 ) As of December 31, 2018 729,593 Granted 170,000 Cancelled (49,748 ) Exercised (260,451 ) As of December 31, 2019 589,394 |
Phantom shares, 1st program [member] | |
Statement [Line Items] | |
Summary of Measurement of Grant Date Fair Value of Share Options | The fair value of share options has been measured using the Black-Scholes model using the informations below. Phantom Shares 1 st 2 nd Total options granted 707,400 405,000 Date of compensation committee August 7, 2018 August 5, 2019 Total options outstanding 560,908 405,000 Option exercise price R$20.43 R$42.09 Option fair value R$40.41 R$25.34 Estimated volatility of the share price 34.00 % 38.8 % Expected dividend 1.10 % 1.10 % Risk-free rate of return 6.40 % 6.40 % Average remaining maturity (in years) 2.6 3.6 Maximum life of the option 8 years 8 years Expected term considered for valuation 6 years 4.5 years |
Virtual Stock Option [member] | |
Statement [Line Items] | |
Summary of Changes in Stock Options and virtual stock options | Changes in virtual stock option plan are disclosed below: Number of As of December 31, 2018 707,400 Granted 405,000 Cancelled (47,889 ) Paid (98,603 ) As of December 31, 2019 965,908 |
Operations - Schedule of Equity
Operations - Schedule of Equity Interest in Subsidiaries of the Company (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
ALAB [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Azul finance LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Azul finance 2 LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Blue Sabia LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
ATS Viagens e Turismo Ltda. [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 99.90% | 99.90% |
Azul SOL LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Azul Investment LLP [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Fundo Garoupa [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Fundo Safira [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Canela Investments LLC (Canela) [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Canela 336 LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | |
Canela 407 LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Canela 429 LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Canela Turbo Three LLC [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Daraland S.A [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Encenta S.A. (Azul Uruguai) [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
TudoAzul S A [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 100.00% | 100.00% |
Cruzeiro Participacoes S.A [member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 99.90% | 99.90% |
Global Azul Air Projects SGPS SA Global [Member] | ||
Disclosure of subsidiaries [line items] | ||
Equity interest owned (as a percentage) | 45.45% |
Operations - Schedule of Equi_2
Operations - Schedule of Equity Interest in Subsidiaries of the Company (Parenthetical) (Detail) - Fundo Garoupa [member] | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of subsidiaries [line items] | |
Azul's investment held directly | 4.00% |
Azul's investment held indirectly through ALAB | 96.00% |
Operations - Additional Informa
Operations - Additional Information (Detail) R$ in Thousands | Mar. 24, 2020BRL (R$) | Feb. 21, 2020BRL (R$)AircraftDestinationsDeparturesPassengers | Dec. 31, 2019BRL (R$)Aircraft | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | Jul. 24, 2019R$ / $ | |
Disclosure of subsidiaries [line items] | |||||||
Exchange rate | R$ / $ | 4.7500 | ||||||
Depreciation, Amortization and Impairment | [1] | R$ 3670884 | R$ 1284050 | R$ 1063378 | |||
Equity position attributed to shareholders | 3,519,174 | 1,150,038 | |||||
Net current liabilities | 2,723,289 | 1,519,560 | |||||
Leases impact on balance sheet | 12,106,621 | 8,919,746 | |||||
Impairment chage and one time costs related to sublease | R$ 79855 | 34,434 | R$ 35619 | ||||
Subsequent event [member] | Airline Two Taxi Aereo Ltda [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Contingent consideration | R$ 123000 | ||||||
AZUL [Member] | Subsequent event [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Number of capacity | 90.00% | ||||||
Executive management team salary cut | 50.00% | ||||||
Managers salary cut | 25.00% | ||||||
Number of leave of absence program | 10,000 | ||||||
Impact of adoption of IFRS 16 [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Leases impact on balance sheet | R$ 4313738 | ||||||
Brazilian Development Bank [member] | Subsequent event [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Support package in credit lines | R$ 10000000 | ||||||
Acceleration of fleet transformation [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Exchange rate | 4.004 | ||||||
Pre-tax discount rate | 10.60% | ||||||
Depreciation, Amortization and Impairment | R$ 2032207 | ||||||
Other expense | 797,591 | ||||||
Write off of prepayments and maintenance reserves | 91,826 | ||||||
Provision charged against inventory part | 27,999 | ||||||
Reversal of sale and lease back gain | 76,466 | ||||||
Impairment and related provisions and write offs | 54,211 | ||||||
Impairment chage and one time costs related to sublease | R$ 2873157 | ||||||
TwoFlex Acquisition [member] | Reportable segments [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Regional Turboprop | Aircraft | 1 | ||||||
TwoFlex Acquisition [member] | Reportable segments [member] | Subsequent event [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Number of destinations | Destinations | 39 | ||||||
Number of daily departure | Departures | 14 | ||||||
Total fleet distance | Aircraft | 17 | ||||||
No of capacity passengers | Passengers | 9 | ||||||
[1] | Includes non recurring items consisting of impairment chage and one time costs related to the sublease of 53 E195 totalling R$2,873,157 (Note 1). |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019BRL (R$)ComponentSegment | |
Disclosure of significant accounting policies [line items] | |
Tax loss carry forwards up to annual taxable income | 30.00% |
Number of aircraft major components | Component | 4 |
Gain (loss) on treasury shares | R$ | R$ 0 |
Number of operating segments | Segment | 1 |
TudoAzul Program [member] | |
Disclosure of significant accounting policies [line items] | |
Expiration period of points | 2 years |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of property and equipment (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Aircraft [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 12 years |
Fixtures and fittings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 5 years |
Aircraft equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 12 years |
Computer equipment and peripherals [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 5 years |
Tools [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 5 years |
Engines [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 12 years |
Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 10 years |
Simulators [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 20 years |
Motor vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 5 years |
Bottom of range [member] | Heavy maintenance - engines [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 3 years |
Bottom of range [member] | Heavy maintenance - structural checks [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 2 years |
Top of range [member] | Heavy maintenance - engines [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 8 years |
Top of range [member] | Heavy maintenance - structural checks [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of the assets | 10 years |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of IFRS 16 impacted on Consolidated Statement of Net Income and Balance Sheet (Detail) - BRL (R$) | Jan. 01, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current assets | |||||
Prepaid expenses | R$ 139403000 | R$ 115453000 | R$ 82656000 | ||
Other-current assets | 169,778,000 | 110,623,000 | 198,807,000 | ||
Non-current assets | |||||
Other non-current assets | 497,567,000 | 397,398,000 | 169,816,000 | ||
Right of use assets | 7,087,412 | 4,926,326,000 | |||
Property, plant and equipment | 1,968,840,000 | 1,842,239,000 | 1,880,771,000 | ||
Current liabilities | |||||
Loans and financing | 481,227,000 | 158,813,000 | 419,198,000 | ||
Lease liabilities | 1,585,233,000 | 1,237,909,000 | 914,600,000 | ||
Accounts payable | 1,376,850,000 | 1,287,661,000 | 971,750,000 | ||
Provision | 323,441,000 | 36,083,000 | |||
Non-current liabilities | |||||
Loans and financing | 3,036,929,000 | 2,597,313,000 | 2,159,241,000 | ||
Lease liabilities | 10,521,388,000 | 7,681,837,000 | 6,428,893,000 | ||
Deferred income taxes | 242,516,000 | 293,211,000 | 142,102,000 | ||
Provision | 1,489,911,000 | 713,941,000 | 553,155,000 | ||
Other non-current liabilities | 215,606,000 | 326,492,000 | 422,713,000 | ||
Equity | |||||
Other comprehensive income | (5,292,000) | (139,281,000) | 31,309,000 | ||
Accumulated losses | (7,516,393,000) | (5,113,307,000) | (4,435,841,000) | ||
Operating revenue | |||||
Cargo and other revenue (f) | 534,428,000 | 386,932,000 | 1,009,491,000 | ||
Operating expense | |||||
Depreciation and amortization | [1] | (3,670,884,000) | (1,284,050,000) | (1,063,378,000) | |
Other operating income (expense) | [1] | (2,013,192,000) | (915,850,000) | (612,194,000) | |
Financial result | |||||
Finance income | 72,071,000 | 74,522,000 | 128,272,000 | ||
Financial expense | (1,329,524,000) | (1,094,828,000) | (1,078,598,000) | ||
Result from related parties transactions, net | (16,959,000) | 381,725,000 | 176,975,000 | ||
Foreign currency exchange, net | (391,905,000) | (1,306,063,000) | 34,859,000 | ||
Income tax | |||||
Income tax expenses | 2,228,000 | 11,224,000 | (2,875,000) | ||
Net income (loss) | R$ 2403086000 | (635,731,000) | 424,513,000 | ||
Adjusted [member] | |||||
Current assets | |||||
Sublease receivable | [2] | R$ 52278000 | 73,671,000 | 57,768,000 | |
Prepaid expenses | 73,504,000 | 115,453,000 | 82,656,000 | ||
Other-current assets | [3] | 110,623,000 | 198,807,000 | ||
Non-current assets | |||||
Sublease receivable | 361,173,000 | 288,067,000 | 308,824,000 | ||
Other non-current assets | 397,398,000 | 169,816,000 | |||
Property, plant and equipment | [4] | 2,121,652,000 | 1,842,239,000 | 1,880,771,000 | |
Current liabilities | |||||
Loans and financing | [5] | 833,413,000 | 158,813,000 | 419,198,000 | |
Lease liabilities | [6] | 790,819,000 | 1,237,909,000 | 914,600,000 | |
Accounts payable | 1,054,106,000 | 1,287,661,000 | 971,750,000 | ||
Provision | [7] | 36,083,000 | |||
Non-current liabilities | |||||
Loans and financing | 2,199,128,000 | 2,597,313,000 | 2,159,241,000 | ||
Lease liabilities | 6,242,168,000 | 7,681,837,000 | 6,428,893,000 | ||
Deferred income taxes | [8] | 84,558,000 | 293,211,000 | 142,102,000 | |
Provision | 478,997,000 | 713,941,000 | 553,155,000 | ||
Other non-current liabilities | 399,566,000 | 326,492,000 | 422,713,000 | ||
Equity | |||||
Other comprehensive income | (45,997,000) | (153,969,000) | (14,688,000) | ||
Accumulated losses | (4,860,354,000) | (5,113,307,000) | (4,435,841,000) | ||
Operating revenue | |||||
Cargo and other revenue (f) | [9] | 386,932,000 | 1,009,491,000 | ||
Operating expense | |||||
Maintenance materials and repairs | [10] | (250,105,000) | (484,156,000) | ||
Depreciation and amortization | (1,284,050,000) | (1,063,378,000) | |||
Other operating income (expense) | (881,416,000) | (576,575,000) | |||
Financial result | |||||
Finance income | 74,522,000 | 128,272,000 | |||
Financial expense | (1,094,828,000) | (1,078,598,000) | |||
Result from related parties transactions, net | 381,725,000 | 176,975,000 | |||
Foreign currency exchange, net | (1,306,063,000) | 34,859,000 | |||
Income tax | |||||
Income tax expenses | (171,581,000) | 7,509,000 | |||
Net income (loss) | (635,731,000) | 424,513,000 | |||
Leased aircraft and other assets [member] | Adjusted [member] | |||||
Non-current assets | |||||
Right of use assets | 4,063,048,000 | 4,926,326,000 | 4,377,725,000 | ||
Maintenance of leased aircraft [member] | Adjusted [member] | |||||
Non-current assets | |||||
Right of use assets | 115,259,000 | R$ 632900000 | R$ 374384000 | ||
Common shares [member] | |||||
Earnings per Share | |||||
Basic net income per share | R$ 0.09 | R$ 0.03 | R$ 0.02 | ||
Diluted net income per share | (0.09) | (0.03) | 0.02 | ||
Common shares [member] | Adjusted [member] | |||||
Earnings per Share | |||||
Basic net income per share | (0.03) | 0.02 | |||
Diluted net income per share | (0.03) | 0.02 | |||
Preference shares [member] | |||||
Earnings per Share | |||||
Basic net income per share | (7.05) | (1.88) | 1.35 | ||
Diluted net income per share | R$ 7.05 | (1.88) | 1.32 | ||
Preference shares [member] | Adjusted [member] | |||||
Earnings per Share | |||||
Basic net income per share | (1.88) | 1.35 | |||
Diluted net income per share | R$ 1.88 | R$ 1.32 | |||
Aircraft And Other Rent [Member] | Adjusted [member] | |||||
Operating expense | |||||
Other operating income (expense) | R$ 34434000 | R$ 35619000 | |||
Increase (decrease) due to changes in accounting policy [member] | |||||
Current assets | |||||
Sublease receivable | [2] | 52,278,000 | 73,671,000 | 57,768,000 | |
Prepaid expenses | (23,997,000) | (48,376,000) | (27,128,000) | ||
Other-current assets | [3] | (1,091,000) | (418,000) | ||
Non-current assets | |||||
Sublease receivable | 361,173,000 | 288,067,000 | 308,824,000 | ||
Other non-current assets | (123,325,000) | (45,891,000) | |||
Property, plant and equipment | [4] | (1,318,328,000) | (1,446,980,000) | (1,444,764,000) | |
Current liabilities | |||||
Loans and financing | [5] | (151,825,000) | (176,238,000) | (149,036,000) | |
Lease liabilities | [6] | 790,819,000 | 1,237,909,000 | 914,600,000 | |
Accounts payable | 19,789,000 | 121,370,000 | 18,216,000 | ||
Provision | [7] | 36,083,000 | |||
Non-current liabilities | |||||
Loans and financing | (850,129,000) | (773,658,000) | (762,412,000) | ||
Lease liabilities | 6,242,168,000 | 7,681,837,000 | 6,428,893,000 | ||
Deferred income taxes | [8] | (96,904,000) | (150,683,000) | (184,809,000) | |
Provision | 402,644,000 | 632,957,000 | 479,957,000 | ||
Other non-current liabilities | 21,642,000 | 5,353,000 | 79,672,000 | ||
Equity | |||||
Other comprehensive income | (12,212,000) | (36,645,000) | (3,496,000) | ||
Accumulated losses | (3,116,559,000) | (4,277,093,000) | (3,221,085,000) | ||
Increase (decrease) due to changes in accounting policy [member] | IFRS 16 [member] | |||||
Operating revenue | |||||
Cargo and other revenue (f) | [9] | (96,293,000) | (84,666,000) | ||
Operating expense | |||||
Maintenance materials and repairs | [10] | 254,372,000 | 83,988,000 | ||
Depreciation and amortization | (959,148,000) | (763,585,000) | |||
Other operating income (expense) | (6,268,000) | (4,078,000) | |||
Financial result | |||||
Finance income | 33,129,000 | 33,467,000 | |||
Financial expense | (684,621,000) | (554,565,000) | |||
Result from related parties transactions, net | 39,642,000 | (17,376,000) | |||
Foreign currency exchange, net | (1,111,357,000) | (23,012,000) | |||
Income tax | |||||
Income tax expenses | (977,000) | 79,189,000 | |||
Net income (loss) | (1,056,008,000) | (104,526,000) | |||
Increase (decrease) due to changes in accounting policy [member] | Leased aircraft and other assets [member] | |||||
Non-current assets | |||||
Right of use assets | 4,063,048,000 | 4,926,326,000 | 4,377,725,000 | ||
Increase (decrease) due to changes in accounting policy [member] | Maintenance of leased aircraft [member] | |||||
Non-current assets | |||||
Right of use assets | 115,259,000 | R$ 632900000 | R$ 374384000 | ||
Increase (decrease) due to changes in accounting policy [member] | Common shares [member] | IFRS 16 [member] | |||||
Earnings per Share | |||||
Basic net income per share | R$ 0.05 | R$ 0.00 | |||
Diluted net income per share | (0.05) | 0 | |||
Increase (decrease) due to changes in accounting policy [member] | Preference shares [member] | IFRS 16 [member] | |||||
Earnings per Share | |||||
Basic net income per share | (3.13) | (0.33) | |||
Diluted net income per share | R$ 3.13 | R$ 0.33 | |||
Increase (decrease) due to changes in accounting policy [member] | Aircraft And Other Rent [Member] | IFRS 16 [member] | |||||
Operating expense | |||||
Other operating income (expense) | R$ 1475513000 | R$ 1146112000 | |||
As Reported [Member] | |||||
Current assets | |||||
Prepaid expenses | 97,501,000 | 163,829,000 | 109,784,000 | ||
Other-current assets | [3] | 111,714,000 | 199,225,000 | ||
Non-current assets | |||||
Other non-current assets | 520,723,000 | 215,707,000 | |||
Property, plant and equipment | [4] | 3,439,980,000 | 3,289,219,000 | 3,325,535,000 | |
Current liabilities | |||||
Loans and financing | [5] | 985,238,000 | 335,051,000 | 568,234,000 | |
Accounts payable | 1,034,317,000 | 1,166,291,000 | 953,534,000 | ||
Non-current liabilities | |||||
Loans and financing | 3,049,257,000 | 3,370,971,000 | 2,921,653,000 | ||
Deferred income taxes | [8] | 181,462,000 | 443,894,000 | 326,911,000 | |
Provision | 76,353,000 | 80,984,000 | 73,198,000 | ||
Other non-current liabilities | 377,924,000 | 321,139,000 | 343,041,000 | ||
Equity | |||||
Other comprehensive income | (33,785,000) | (117,324,000) | (11,192,000) | ||
Accumulated losses | R$ 1743795000 | (836,214,000) | (1,214,756,000) | ||
Operating revenue | |||||
Cargo and other revenue (f) | [9] | 483,225,000 | 1,094,157,000 | ||
Operating expense | |||||
Maintenance materials and repairs | [10] | (504,477,000) | (568,144,000) | ||
Depreciation and amortization | (324,902,000) | (299,793,000) | |||
Other operating income (expense) | (875,148,000) | (572,497,000) | |||
Financial result | |||||
Finance income | 41,393,000 | 94,805,000 | |||
Financial expense | (410,207,000) | (524,033,000) | |||
Result from related parties transactions, net | 342,083,000 | 194,351,000 | |||
Foreign currency exchange, net | (194,706,000) | 57,871,000 | |||
Income tax | |||||
Income tax expenses | (170,604,000) | (71,680,000) | |||
Net income (loss) | R$ 420277000 | R$ 529039000 | |||
As Reported [Member] | Common shares [member] | |||||
Earnings per Share | |||||
Basic net income per share | R$ 0.02 | R$ 0.02 | |||
Diluted net income per share | 0.02 | 0.02 | |||
As Reported [Member] | Preference shares [member] | |||||
Earnings per Share | |||||
Basic net income per share | 1.24 | 1.68 | |||
Diluted net income per share | R$ 1.23 | R$ 1.64 | |||
As Reported [Member] | Aircraft And Other Rent [Member] | |||||
Operating expense | |||||
Other operating income (expense) | R$ 1509947000 | R$ 1181731000 | |||
[1] | Includes non recurring items consisting of impairment chage and one time costs related to the sublease of 53 E195 totalling R$2,873,157 (Note 1). | ||||
[2] | The Company, as a lessor, has reassessed its sublease agreements as finance leases. The leased assets have been de-recognized and a sublease receivables recorded. Under IFRS 16, the revenue recorded for finance leases consists of financial income. | ||||
[3] | The Company had deferred sale and leaseback losses which, upon transition, were recognized as a loss at the time of the transaction and corresponding amortization expenses previously recognized under IAS 17 were reversed. | ||||
[4] | Finance lease aircraft, previously recognized in property, plant and equipment, are now presented as a right-of-use asset. | ||||
[5] | Finance lease liabilities, previously recognized as loans and financing, are now presented as lease liabilities, | ||||
[6] | The application of IFRS 16 to leases previously classified as operating leases under IAS 17, resulted in the recognition of right-of-use assets and lease liabilities. As a result, aircraft and other rent expenses have decreased, offset by an increase in depreciation and amortization expense, finance expense and foreign currency exchange expense. | ||||
[7] | Costs resulting from maintenance events that will be carried out immediately before the aircraft is returned to lessors (defined as restoration events under IFRS 16), are recognized as provisions from the beginning of the contract, provided that they can be estimated reasonably, against the recognition of a right of use asset, which is depreciated on a straight-line basis over the lease. | ||||
[8] | Deferred tax assets are recognized only to the extent that recovery is probable. | ||||
[9] | For subleases classified as operating subleases, the Company continues to recognize the right-of-use asset, which continues to depreciate in accordance with the Company’s policy. Sublease revenue is recognized throught the sublease under the heading “Cargo and other revenues”. | ||||
[10] | Heavy maintenance and structural checks expenses related to aircraft under operating lease were previously recorded under Maintenance materials and repais expenses. Under IFRS 16, these expenses are capitalized and depreciated. |
Significant Accounting Polici_7
Significant Accounting Policies - Summary of IFRS 16 impacted on Consolidated Statement of Cash Flows (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from (used in) operating activities [abstract] | |||
Profit (loss) | R$ 2403086 | R$ 635731 | R$ 424513 |
Adjustments to reconcile net loss to cash flows provided by (used in) operating activities | |||
Depreciation, amortization and impairment | 3,670,884 | 1,284,050 | 1,063,378 |
Exchange (gain) and losses on assets and liabilities denominated in foreign currency | 448,901 | 1,243,882 | (37,991) |
Interest (income) and expenses on assets and liabilities | 1,082,256 | 866,895 | 776,470 |
Deferred income tax and social contribution | (135,407) | 171,581 | (7,509) |
Changes in operating assets and liabilities | |||
Sublease receivables | (78,511) | (53,011) | (37,073) |
Prepaid expenses | (24,483) | (50,475) | (9,979) |
Other assets | (103,233) | (210,302) | (101,696) |
Accounts payable | 87,636 | 245,785 | (95,097) |
Other liabilities | (112,578) | (42,680) | 52,332 |
Interest paid | (969,061) | (845,297) | (821,173) |
Cash flows from (used in) investing activities [abstract] | |||
Acquisition of property and equipment | (1,427,965) | (1,086,442) | (695,032) |
Cash flows from financing activities | |||
Loan proceeds | 592,312 | 98,940 | 1,710,650 |
Repayment | R$ 109959 | (747,231) | (942,288) |
Adjusted [member] | |||
Cash flows from (used in) operating activities [abstract] | |||
Profit (loss) | (635,731) | 424,513 | |
Adjustments to reconcile net loss to cash flows provided by (used in) operating activities | |||
Depreciation, amortization and impairment | 1,284,050 | 1,063,378 | |
Exchange (gain) and losses on assets and liabilities denominated in foreign currency | 1,243,882 | (37,991) | |
Interest (income) and expenses on assets and liabilities | 866,895 | 776,470 | |
Deferred income tax and social contribution | 171,581 | (7,509) | |
Changes in operating assets and liabilities | |||
Sublease receivables | 4,854 | 46,859 | |
Prepaid expenses | (50,475) | (9,979) | |
Other assets | (210,302) | (101,696) | |
Accounts payable | 245,785 | (95,097) | |
Other liabilities | (42,680) | 52,332 | |
Interest paid | (845,297) | (821,173) | |
Cash flows from (used in) investing activities [abstract] | |||
Acquisition of property and equipment | (1,086,442) | (695,032) | |
Cash flows from financing activities | |||
Loan proceeds | 1,710,650 | ||
Repayment | (747,231) | (942,288) | |
Payments | (1,082,239) | (795,010) | |
Increase (decrease) due to changes in accounting policy [member] | IFRS 16 [member] | |||
Cash flows from (used in) operating activities [abstract] | |||
Profit (loss) | (1,056,008) | (104,526) | |
Adjustments to reconcile net loss to cash flows provided by (used in) operating activities | |||
Depreciation, amortization and impairment | 959,148 | 763,585 | |
Exchange (gain) and losses on assets and liabilities denominated in foreign currency | 1,153,741 | 24,245 | |
Interest (income) and expenses on assets and liabilities | 684,621 | 554,343 | |
Deferred income tax and social contribution | 977 | (79,189) | |
Changes in operating assets and liabilities | |||
Sublease receivables | 4,854 | 46,859 | |
Prepaid expenses | 21,248 | 10,038 | |
Other assets | 78,107 | 39,412 | |
Accounts payable | 103,154 | (1,573) | |
Other liabilities | (74,319) | 58,021 | |
Interest paid | (630,626) | (519,230) | |
Cash flows from (used in) investing activities [abstract] | |||
Acquisition of property and equipment | (331,805) | (105,535) | |
Cash flows from financing activities | |||
Loan proceeds | (39,461) | ||
Repayment | (216,759) | (53,222) | |
Payments | (696,333) | (593,764) | |
As Reported [Member] | |||
Cash flows from (used in) operating activities [abstract] | |||
Profit (loss) | 420,277 | 529,039 | |
Adjustments to reconcile net loss to cash flows provided by (used in) operating activities | |||
Depreciation, amortization and impairment | 324,902 | 299,793 | |
Exchange (gain) and losses on assets and liabilities denominated in foreign currency | 90,141 | (62,236) | |
Interest (income) and expenses on assets and liabilities | 182,274 | 222,127 | |
Deferred income tax and social contribution | 170,604 | 71,680 | |
Changes in operating assets and liabilities | |||
Prepaid expenses | (71,723) | (20,017) | |
Other assets | (288,409) | (141,108) | |
Accounts payable | 142,631 | (93,524) | |
Other liabilities | 31,639 | (5,689) | |
Interest paid | (214,671) | (301,943) | |
Cash flows from (used in) investing activities [abstract] | |||
Acquisition of property and equipment | (754,637) | (589,497) | |
Cash flows from financing activities | |||
Loan proceeds | 1,750,111 | ||
Repayment | (530,472) | (889,066) | |
Payments | R$ 385906 | R$ 201246 |
Financial Risk Management Obj_3
Financial Risk Management Objectives and Policies - Summary of Effects of Hedges Designated for Hedge Accounting in Debt (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about hedged items [line items] | ||
Fair Value - hedge instrument | R$ 317787 | R$ 266404 |
Consolidated post hedge strategy | ||
Brazil, Brazil Real [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Book value | 2,825,749 | |
Fair Value - hedge instrument | (317,787) | |
Consolidated post hedge strategy | 2,507,962 | |
Aircraft and engine acquisition [member] | US Dollars [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Book value | 896,232 | |
Fair Value - hedge instrument | (10,971) | |
Consolidated post hedge strategy | 885,261 | |
Aircraft and engine acquisition [member] | Brazil, Brazil Real [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Book value | 164,280 | |
Fair Value - hedge instrument | (3,309) | |
Consolidated post hedge strategy | 160,971 | |
Working capital [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Book value | 1,727,882 | |
Fair Value - hedge instrument | (303,507) | |
Consolidated post hedge strategy | 1,424,375 | |
Working capital [member] | US Dollars [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Book value | 1,727,882 | |
Fair Value - hedge instrument | (303,507) | R$ 266404 |
Consolidated post hedge strategy | 1,424,375 | |
Working capital [member] | Brazil, Brazil Real [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Book value | 37,355 | |
Consolidated post hedge strategy | R$ 37355 |
Financial Risk Management Obj_4
Financial Risk Management Objectives and Policies - Summary of Indebtedness Related to Working Capital Denominated in Foreign Currency Designated as Hedge Accounting (Exchanging Exposure for Local Currency) Contracted (Detail) R$ in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about hedged items [line items] | |||
Fair Value - hedge instrument | R$ 317787 | R$ 266404 | |
Debt Considering Hedge | |||
Working capital [member] | |||
Disclosure of detailed information about hedged items [line items] | |||
Carrying amount - hedge item | 1,727,882 | ||
Fair Value - hedge instrument | (303,507) | ||
Debt Considering Hedge | R$ 1424375 | ||
Working capital [member] | Interest rate swap contract [member] | |||
Disclosure of detailed information about hedged items [line items] | |||
Nominal amount | 98,940 | $ 30 | |
Nominal amount | R$ 98940 | 30 | |
Working capital [member] | Interest Rate Swap And Foreign Exchange Risk [Member] | |||
Disclosure of detailed information about hedged items [line items] | |||
Type of hedge | Fair value hedge | ||
Hedged Item | Principal & Interest on 4.131 Transaction | ||
Hedge Instrument | IRS - Interest Rate Swap (receives US Libor3M + spread & pays 108% CDI) | ||
Carrying amount - hedge item | R$ 121968 | ||
Fair Value - hedge instrument | (20,747) | ||
Debt Considering Hedge | R$ 101221 | ||
Working capital [member] | Foreign exchange risk [member] | |||
Disclosure of detailed information about hedged items [line items] | |||
Type of hedge | Cash Flow Hedge | ||
Hedged Item | Principal US$ on Senior Notes Azul LLP | ||
Hedge Instrument | Currency Options - Floor 3,2865 Cap 4,7500 | ||
Nominal amount | $ | 400 | ||
Carrying amount - hedge item | R$ 1605914 | ||
Nominal amount | $ | $ 400 | ||
Fair Value - hedge instrument | (282,760) | ||
Debt Considering Hedge | R$ 1323154 | ||
Working capital [member] | Interbank certificate of deposit rate CDI [member] | |||
Disclosure of detailed information about hedged items [line items] | |||
Borrowings interest rate | 108.00% |
Financial Risk Management Obj_5
Financial Risk Management Objectives and Policies - Summary of Indebtedness Related to Aircraft Acquisition Denominated in Foreign Currency Designated as Hedge Accounting (Exchanging Exposure for Local Currency) Contracted (Detail) R$ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) | Apr. 16, 2019USD ($) | Dec. 31, 2018BRL (R$) | |
Disclosure of detailed information about hedged items [line items] | ||||
Fair Value - hedge instrument | R$ 317787 | R$ 266404 | ||
Debt Considering Hedge | ||||
Fair value hedges [member] | ||||
Disclosure of detailed information about hedged items [line items] | ||||
Nominal amount | 139,702 | R$ 163353 | ||
Cash flow hedge [member] | ||||
Disclosure of detailed information about hedged items [line items] | ||||
Nominal amount | $ | $ 79 | |||
Aircraft Acquisition [Member] | ||||
Disclosure of detailed information about hedged items [line items] | ||||
Carrying amount - hedge item | 638,835 | |||
Fair Value - hedge instrument | (14,280) | |||
Debt Considering Hedge | R$ 624555 | |||
Interest Rate Swap And Foreign Exchange Risk [Member] | Aircraft Acquisition [Member] | Fair value hedges [member] | ||||
Disclosure of detailed information about hedged items [line items] | ||||
Type of hedge | Fair value hedge | |||
Hedged Item | Principal & Interest | |||
Hedge Instrument | IRS - Interest Rate Swap (fixed 6% to 58% and 61% of CDI) | |||
Borrowings interest rate | 61.00% | 61.00% | ||
Nominal amount | R$ 76200 | |||
Carrying amount - hedge item | 44,249 | |||
Fair Value - hedge instrument | (3,309) | |||
Debt Considering Hedge | R$ 40940 | |||
Interest Rate Swap And Foreign Exchange Risk [Member] | Aircraft Acquisition [Member] | Cash flow hedge [member] | ||||
Disclosure of detailed information about hedged items [line items] | ||||
Type of hedge | Cash Flow Hedge | |||
Hedged Item | Principal US$ on OPIC | |||
Hedge Instrument | Currency Options - Floor 3,8070 Cap 4,7500 | |||
Nominal amount | $ | $ 79 | |||
Carrying amount - hedge item | R$ 594586 | |||
Fair Value - hedge instrument | (10,971) | |||
Debt Considering Hedge | R$ 583615 | |||
Bottom of range [member] | Interest Rate Swap And Foreign Exchange Risk [Member] | Aircraft Acquisition [Member] | Fair value hedges [member] | ||||
Disclosure of detailed information about hedged items [line items] | ||||
Borrowings interest rate | 6.00% | 6.00% | ||
Top of range [member] | Interest Rate Swap And Foreign Exchange Risk [Member] | Aircraft Acquisition [Member] | Fair value hedges [member] | ||||
Disclosure of detailed information about hedged items [line items] | ||||
Borrowings interest rate | 58.00% | 58.00% |
Financial Risk Management Obj_6
Financial Risk Management Objectives and Policies - Additional Information (Detail) R$ in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2019BRL (R$) | Jul. 24, 2019USD ($)R$ / $ | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Exchange rate | R$ / $ | 4.7500 | |
Increase in lease liabilities | R$ | R$ 2124722 | |
Global Azul Air Projects [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Percentage of conomic rights in Atlantic Gateway | 35.60% | |
Percentage of conomic rights in TAP | 6.10% | |
Interest rate risk [member] | Weighted average [member] | Ifrs london interbank offered rate libor [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Weighted average interest rate | 5.34% | |
Interest rate risk [member] | Weighted average [member] | Interbank certificate of deposit rate CDI [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Weighted average interest rate | 4.74% | |
Currency risk [member] | US Dollars [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Exchange rate | 4.0307 | |
Currency risk [member] | Euro [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Exchange rate | 4.5305 | |
Market risks [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Derivative transaction Amount | $ | $ 28 | |
Interest rate | R$ / $ | 3.7731 | |
Credit risk [member] | Oceanair Linhas Areas S [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Loan commitments and financial guarantee contracts | R$ | R$ 52000 |
Financial Risk Management Obj_7
Financial Risk Management Objectives and Policies - Schedule of Sensitivity Analysis for Market Risk (Detail) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Interest rate risk [member] | Percentage one [member] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of reasonably possible increase in risk assumption | 25.00% |
Percentage of reasonably possible decrease in risk assumption | (25.00%) |
Increase (decrease) in interest expenses due to reasonably possible increase in designated risk component | R$ 29430 |
Increase (decrease) in interest expenses due to reasonably possible decrease in designated risk component | R$ 29430 |
Interest rate risk [member] | Percentage two [member] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of reasonably possible increase in risk assumption | 50.00% |
Percentage of reasonably possible decrease in risk assumption | (50.00%) |
Increase (decrease) in interest expenses due to reasonably possible increase in designated risk component | R$ 58860 |
Increase (decrease) in interest expenses due to reasonably possible decrease in designated risk component | R$ 58860 |
Currency risk [member] | US Dollars [member] | Percentage one [member] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of reasonably possible increase in risk assumption | 25.00% |
Percentage of reasonably possible decrease in risk assumption | (25.00%) |
Exposure exchange rate, increase in risk component | 5,038.4 |
Exposure exchange rate, decrease in risk component | 3,023 |
Effect on exchange rate variation due to reasonably possible increase in exchange rates | R$ 2530398 |
Effect on exchange rate variation due to reasonably possible decrease in exchange rates | R$ 2530398 |
Currency risk [member] | US Dollars [member] | Percentage two [member] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of reasonably possible increase in risk assumption | 50.00% |
Percentage of reasonably possible decrease in risk assumption | (50.00%) |
Exposure exchange rate, increase in risk component | 6,046.1 |
Exposure exchange rate, decrease in risk component | 2,015.4 |
Effect on exchange rate variation due to reasonably possible increase in exchange rates | R$ 5060797 |
Effect on exchange rate variation due to reasonably possible decrease in exchange rates | R$ 5060797 |
Currency risk [member] | Euro [member] | Percentage one [member] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of reasonably possible increase in risk assumption | 25.00% |
Percentage of reasonably possible decrease in risk assumption | (25.00%) |
Exposure exchange rate, increase in risk component | 5,663.1 |
Exposure exchange rate, decrease in risk component | 3,397.9 |
Effect on exchange rate variation due to reasonably possible increase in exchange rates | R$ 309207 |
Effect on exchange rate variation due to reasonably possible decrease in exchange rates | R$ 309207 |
Currency risk [member] | Euro [member] | Percentage two [member] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of reasonably possible increase in risk assumption | 50.00% |
Percentage of reasonably possible decrease in risk assumption | (50.00%) |
Exposure exchange rate, increase in risk component | 6,795.8 |
Exposure exchange rate, decrease in risk component | 2,265.3 |
Effect on exchange rate variation due to reasonably possible increase in exchange rates | R$ 618414 |
Effect on exchange rate variation due to reasonably possible decrease in exchange rates | R$ 618414 |
Financial Risk Management Obj_8
Financial Risk Management Objectives and Policies - Schedule of Nominal Foreign Exchange Exposure (Detail) - Currency risk [member] - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
US Dollars [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | R$ 10121502 | R$ 6548754 |
US Dollars [member] | Leasing liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | (12,034,392) | (8,948,314) |
US Dollars [member] | Cash and cash equivalents and short term investments [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | 289,297 | 356,174 |
US Dollars [member] | Security deposits and maintenance reserves [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | 1,613,221 | 1,513,963 |
US Dollars [member] | Long term investments [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | 160,871 | |
US Dollars [member] | Financial instruments [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | 121,968 | 116,564 |
US Dollars [member] | Other assets [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | 244,355 | 122,456 |
US Dollars [member] | Total assets [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | 2,709,216 | 2,470,895 |
US Dollars [member] | Accounts payable [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | (424,411) | (455,777) |
US Dollars [member] | Loans and financing [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | (2,624,114) | (1,756,989) |
US Dollars [member] | Other liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | (688,134) | (44,925) |
US Dollars [member] | Total liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | (15,771,051) | (11,206,005) |
US Dollars [member] | Derivatives (NDF) notional [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | 2,940,333 | 2,186,356 |
US Dollars [member] | Sub Lease Receivables [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | 279,504 | 361,738 |
Euro [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | 1,236,828 | 1,287,781 |
Euro [member] | Long term investments [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | 1,236,828 | 1,287,781 |
Euro [member] | Total assets [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk Exposure | R$ 1236828 | R$ 1287781 |
Financial Risk Management Obj_9
Financial Risk Management Objectives and Policies - Schedule of Nominal Foreign Exchange Exposure (Parenthetical) (Detail) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
US dollar exposure on Loans | R$ 465181 |
Currency risk [member] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Working capital loans | 2,158,933 |
Total debt | R$ 314500 |
Financial Risk Management Ob_10
Financial Risk Management Objectives and Policies - Schedule of Risks Related to Variations in Prices of Aircraft Fuel (Detail) - Commodity price risk [member] R$ in Thousands | Dec. 31, 2019BRL (R$) |
Percentage one [member] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of reasonably possible increase in risk assumption | 25.00% |
Percentage of reasonably possible decrease in risk assumption | (25.00%) |
Impact on fuel hedges due to reasonably possible increase in designated risk component | R$ 379673 |
Impact on fuel hedges due to reasonably possible decrease in designated risk component | R$ 261317 |
Percentage two [member] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of reasonably possible increase in risk assumption | 50.00% |
Percentage of reasonably possible decrease in risk assumption | (50.00%) |
Impact on fuel hedges due to reasonably possible increase in designated risk component | R$ 700031 |
Impact on fuel hedges due to reasonably possible decrease in designated risk component | R$ 582002 |
Financial Risk Management Ob_11
Financial Risk Management Objectives and Policies - Schedule of Financial Liabilities by Maturity (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Lease liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | R$ 12106621 | R$ 8919746 |
Liquidity risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 17,561,544 | |
Liquidity risk [member] | Lease liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 12,106,621 | |
Liquidity risk [member] | Loans and financing [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 3,518,156 | |
Liquidity risk [member] | Accounts payable [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 1,376,850 | |
Liquidity risk [member] | Accounts payable - Supplier finance[member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 249,727 | |
Liquidity risk [member] | Liabilities from derivative transaction [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 310,190 | |
Immediate [member] | Liquidity risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 1,541,470 | |
Immediate [member] | Liquidity risk [member] | Lease liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 271,524 | |
Immediate [member] | Liquidity risk [member] | Loans and financing [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 42,619 | |
Immediate [member] | Liquidity risk [member] | Accounts payable [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 975,465 | |
Immediate [member] | Liquidity risk [member] | Accounts payable - Supplier finance[member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 249,727 | |
Immediate [member] | Liquidity risk [member] | Liabilities from derivative transaction [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 2,135 | |
Until 6 months [member] | Liquidity risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 1,085,116 | |
Until 6 months [member] | Liquidity risk [member] | Lease liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 598,472 | |
Until 6 months [member] | Liquidity risk [member] | Loans and financing [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 162,269 | |
Until 6 months [member] | Liquidity risk [member] | Accounts payable [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 277,388 | |
Until 6 months [member] | Liquidity risk [member] | Liabilities from derivative transaction [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 46,987 | |
7 to 12 months [member] | Liquidity risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 1,147,647 | |
7 to 12 months [member] | Liquidity risk [member] | Lease liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 715,237 | |
7 to 12 months [member] | Liquidity risk [member] | Loans and financing [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 276,339 | |
7 to 12 months [member] | Liquidity risk [member] | Accounts payable [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 123,997 | |
7 to 12 months [member] | Liquidity risk [member] | Liabilities from derivative transaction [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 32,074 | |
More than one year up to five years [member] | Liquidity risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 11,313,843 | |
More than one year up to five years [member] | Liquidity risk [member] | Lease liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 8,081,759 | |
More than one year up to five years [member] | Liquidity risk [member] | Loans and financing [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 3,003,090 | |
More than one year up to five years [member] | Liquidity risk [member] | Liabilities from derivative transaction [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 228,994 | |
More than five years [member] | Liquidity risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 2,473,468 | |
More than five years [member] | Liquidity risk [member] | Lease liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | 2,439,629 | |
More than five years [member] | Liquidity risk [member] | Loans and financing [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liability | R$ 33839 |
Financial Risk Management Ob_12
Financial Risk Management Objectives and Policies - Schedule of Total Capital (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||||
Equity | R$ 3519174 | R$ 1150038 | R$ 390971 | R$ 2126784 |
Net debt | 10,586,152 | 6,793,074 | ||
Total capital | 7,066,978 | 5,643,036 | ||
Lease liabilities [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liability | 12,106,621 | 8,919,746 | ||
Cash and cash equivalents [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets | (1,647,880) | (1,169,136) | ||
Short-term investments [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets | (62,009) | (517,423) | ||
Long term investments [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets | (1,397,699) | (1,287,781) | ||
Loans and financing [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial liability | 3,518,156 | 2,756,126 | ||
Sub Lease Receivables [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets | (279,504) | (361,738) | ||
Security Deposits And Maintenance Reserve [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Financial assets | R$ 1651533 | R$ 1546720 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents [abstract] | ||||
Cash and bank deposits | R$ 308958 | R$ 370262 | ||
Cash equivalents | ||||
Bank Deposit Certificate - CDB | 1,317,388 | 480,052 | ||
Investments funds | 21,534 | 318,822 | ||
Total cash and cash equivalents | R$ 1647880 | R$ 1169136 | R$ 762319 | R$ 549164 |
Short-term Investments - Schedu
Short-term Investments - Schedule of Investments (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investment [abstract] | |||
Other short-term investments | R$ 21243 | R$ 16039 | |
Investment funds | 40,766 | 501,384 | |
Total short-term investments | R$ 62009 | R$ 517423 | R$ 1036148 |
Short-term Investments - Additi
Short-term Investments - Additional Information (Detail) | Dec. 31, 2019 |
CDI - Interbank Deposit Certificate rate [member] | |
Disclosure of Short-term Investments [line items] | |
Accumulated average interest rate of debentures | 100.00% |
Trade and Other Receivables - S
Trade and Other Receivables - Schedule of Trade and Other Receivables (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other current receivables [abstract] | |||
Trade and other receivables with customers | R$ 1142704 | R$ 1039373 | |
Trade and other receivables with others | 37,878 | 42,406 | |
Total trade and other receivables with customers | 1,180,582 | 1,081,779 | |
Allowance for doubtful accounts | (14,716) | (12,723) | |
Total | R$ 1165866 | R$ 1069056 | R$ 914428 |
Trade and Other Receivables -_2
Trade and Other Receivables - Schedule of Changes in the Allowance for Doubtful Accounts (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Trade and other current receivables [abstract] | ||
Balance at the beginning of the year | R$ 12723 | R$ 6925 |
Increases | 5,532 | 7,505 |
Reversals | (3,539) | (1,707) |
Balance at the end of the year | R$ 14716 | R$ 12723 |
Trade and Other Receivables -_3
Trade and Other Receivables - Schedule of Aging of Accounts Receivables (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and Other Current Receivables [line items] | ||
Accounts receivables | R$ 1180582 | R$ 1081779 |
Not yet due [member] | ||
Trade and Other Current Receivables [line items] | ||
Accounts receivables | 1,151,963 | 1,025,211 |
Up to 90 days [member] | ||
Trade and Other Current Receivables [line items] | ||
Accounts receivables | 13,903 | 43,845 |
Over 91 days [member] | ||
Trade and Other Current Receivables [line items] | ||
Accounts receivables | R$ 14716 | R$ 12723 |
Trade and Other Receivables - A
Trade and Other Receivables - Additional Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Trade and Other Current Receivables [line items] | ||
Average days-sales-outstanding (in days) | 31 days | 37 days |
Face value of factored receivable from credit cards | R$ 3247722 | R$ 2553188 |
Discount interest cost recognized on factored accounts receivable derecognized | 6,449 | 10,414 |
Due more than 60 days [member] | ||
Trade and Other Current Receivables [line items] | ||
Credit cards | R$ 495707 | R$ 691839 |
Domestic [member] | ||
Trade and Other Current Receivables [line items] | ||
Minimum period after interest chargeable on installments | 6 months | |
International [member] | ||
Trade and Other Current Receivables [line items] | ||
Minimum period after interest chargeable on installments | 10 months |
Aircraft Sublease Receivables -
Aircraft Sublease Receivables - Summary of Subleased Fifteen Aircraft to TAP and the Amounts Receivable (Detail) - Aircraft [member] - BRL (R$) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Undiscounted finance lease payments to be received | R$ 0 | R$ 0 |
TAP [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Undiscounted finance lease payments to be received | 340,841,000 | 450,808,000 |
Finance revenue (accrued) | (61,337,000) | (89,070,000) |
Lease receivables (net) | 279,504,000 | 361,738,000 |
Current | 75,052,000 | 73,671,000 |
Non-current | 204,452,000 | 288,067,000 |
TAP [member] | 2019 [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Undiscounted finance lease payments to be received | 102,660,000 | |
TAP [member] | 2020 [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Undiscounted finance lease payments to be received | 98,152,000 | 102,660,000 |
TAP [member] | 2021 [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Undiscounted finance lease payments to be received | 86,657,000 | 91,908,000 |
TAP [member] | 2022 [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Undiscounted finance lease payments to be received | 47,136,000 | 48,897,000 |
TAP [member] | 2023 [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Undiscounted finance lease payments to be received | 44,154,000 | 42,446,000 |
TAP [member] | After 2023 [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Undiscounted finance lease payments to be received | R$ 64742000 | R$ 62237000 |
Aircraft Sublease Receivables_2
Aircraft Sublease Receivables - Summary of Subleased Fifteen Aircraft to TAP and the Amounts Receivable (Parenthetical) (Detail) - BRL (R$) | Dec. 31, 2019 | Dec. 31, 2018 |
Aircraft [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Undiscounted finance lease payments to be received | R$ 0 | R$ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Classes of current inventories [abstract] | |||
Parts and maintenance materials | R$ 288824 | R$ 206729 | |
Catering and uniforms | 5,768 | 9,351 | |
Inventory provision | (33,727) | (15,935) | |
Inventories | R$ 260865 | R$ 200145 | R$ 150393 |
Inventories - Schedule of Inv_2
Inventories - Schedule of Inventories (Parenthetical) (Detail) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Provision Related To The Acceleration Of The Fleet Transformation [member] | |
Statement [Line Items] | |
Provision charged against inventory part | R$ 27999 |
Prepaid Expenses - Schedule of
Prepaid Expenses - Schedule of Prepaid Expenses (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Prepaid Expenses [Line Items] | |||
Insurance premium | R$ 47506 | ||
Aircraft and engine leases | 39,989 | ||
Guarantee commission | 16,332 | ||
Other | 57,792 | ||
Total prepaid expenses | 161,619 | ||
Current | 139,403 | R$ 115453 | R$ 82656 |
Non-current | R$ 22216 | 21,683 | R$ 4472 |
As Restated [Member] | |||
Schedule Of Prepaid Expenses [Line Items] | |||
Insurance premium | 33,385 | ||
Aircraft and engine leases | 28,234 | ||
Guarantee commission | 20,682 | ||
Other | 54,835 | ||
Total prepaid expenses | 137,136 | ||
Current | 115,453 | ||
Non-current | R$ 21683 |
Related Parties - Schedule of C
Related Parties - Schedule of Compensation for Key Management Personnel (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [abstract] | |||
Salaries and wages | R$ 22187 | R$ 16275 | R$ 17377 |
Bonus | 7,255 | 7,263 | 6,724 |
Share-based option plans | 29,129 | 21,508 | 24,775 |
Total compensation | R$ 58571 | R$ 45046 | R$ 48876 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) R$ in Thousands, € in Millions, $ in Millions | Mar. 14, 2019BRL (R$) | Mar. 26, 2018BRL (R$) | Sep. 20, 2016 | Mar. 14, 2016EUR (€) | Dec. 31, 2019BRL (R$)Aircraft | Jul. 31, 2017Aircraft | Mar. 31, 2016Aircraft | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | Mar. 14, 2019USD ($) | Sep. 02, 2016USD ($) |
Disclosure of transactions between related parties [line items] | ||||||||||||
Accounts payable | R$ 1376850 | R$ 1376850 | R$ 1287661 | R$ 971750 | ||||||||
Prepaid expenses | 139,403 | 139,403 | 115,453 | 82,656 | ||||||||
Acquisitions of long-term investment | 51,028 | |||||||||||
London interbank offered rate Libor [member] | ||||||||||||
Disclosure of transactions between related parties [line items] | ||||||||||||
Variable spread on interest rate | 2.30% | |||||||||||
TAP ME [member] | ||||||||||||
Disclosure of transactions between related parties [line items] | ||||||||||||
Total value of maintenance services acquired pursuant to such Maintenance Agreements | 17,552 | 83,831 | 83,295 | |||||||||
Accounts payable | 97,000 | 97,000 | 5,663,000 | |||||||||
Shareholder [member] | ||||||||||||
Disclosure of transactions between related parties [line items] | ||||||||||||
Loan agreement receivable, non current | $ | $ 2.8 | |||||||||||
Loan agreement receivable, current | 12,789 | 12,789 | 12,042 | |||||||||
Aigle Azur [member] | ||||||||||||
Disclosure of transactions between related parties [line items] | ||||||||||||
Prepaid expenses | 11,794 | 11,794 | 13,330 | 0 | ||||||||
Provision for doubtful debts | 5,055 | 5,055 | 0 | 0 | ||||||||
TAP [member] | ||||||||||||
Disclosure of transactions between related parties [line items] | ||||||||||||
Number of aircraft subleased | Aircraft | 15 | |||||||||||
Number of onerous aircraft subleases executed | Aircraft | 7 | |||||||||||
Number of subleased aircrafts returned | Aircraft | 2 | |||||||||||
Amounts received from subleases | 126,149 | 112,046 | 113,391 | |||||||||
Amount paid to external lessors | R$ 140588 | 129,958 | 138,042 | |||||||||
Percentage of total and voting capital upon conversion of bonds | 6.00% | |||||||||||
Percentage of distributable profits for right to receive dividends or other distributions in investment company | 41.25% | |||||||||||
Interest rate on convertible bonds | 3.75% | 7.50% | ||||||||||
Gain loss on financial assets | R$ 64710 | |||||||||||
Financial assets | R$ 61675 | 61,675 | ||||||||||
TAP [member] | Major purchases of assets [member] | ||||||||||||
Disclosure of transactions between related parties [line items] | ||||||||||||
Purchase price of assets | R$ 96161000 | $ 25 | ||||||||||
Ownership percentage | 6.10% | 6.10% | ||||||||||
TAP [member] | Tap convertible bonds option [member] | ||||||||||||
Disclosure of transactions between related parties [line items] | ||||||||||||
Acquisitions of long-term investment | € | € 90 | |||||||||||
Maturity term of convertible bonds | 10 years | |||||||||||
Number of years for early redeem of Convertible Bonds | 4 years | |||||||||||
Atlantic Gateway [member] | Major purchases of assets [member] | ||||||||||||
Disclosure of transactions between related parties [line items] | ||||||||||||
Percentage of voting rights | 20.00% | 20.00% | ||||||||||
Percentage of economic rights | 35.60% | |||||||||||
Transactions With Breeze [member] | ||||||||||||
Disclosure of transactions between related parties [line items] | ||||||||||||
Number of aircraft subleased | Aircraft | 28 | |||||||||||
Aguia Branca Participacoes SA [member] | ||||||||||||
Disclosure of transactions between related parties [line items] | ||||||||||||
Service agreement fees paid | R$ 50118 | R$ 49900 | R$ 46500 | |||||||||
Caprioli Turismo Ltd [member] | ||||||||||||
Disclosure of transactions between related parties [line items] | ||||||||||||
Purchase for resale tickets for the flights | R$ 20000 |
Security Deposits and Mainten_3
Security Deposits and Maintenance Reserves - Schedule of Security Deposits and Maintenance Reserve Deposits (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value measurement of assets [line items] | ||
Deposits | R$ 1651533 | R$ 1546720 |
Current assets | 258,212 | 144,192 |
Non current assets | 1,393,321 | 1,402,528 |
Security deposits [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Deposits | 152,635 | 225,230 |
Non current assets | 152,635 | |
Maintenance reserve deposits [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Deposits | 1,498,898 | R$ 1321490 |
Current assets | 258,212 | |
Non current assets | R$ 1240686 |
Security Deposits and Mainten_4
Security Deposits and Maintenance Reserves - Additional Information (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Security deposits [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Refund for replacement of deposits | R$ 100136 | R$ 18125 |
Maintenance reserve deposits [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Refund for replacement of deposits | R$ 76931 | R$ 106875 |
Security Deposits and Mainten_5
Security Deposits and Maintenance Reserves - Changes in Security Deposits and Maintenance Reserve Deposits (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of fair value measurement of assets [line items] | ||
Balance at beginning of the period | R$ 1546720 | R$ 1259127 |
Additions | 381,341 | 357,291 |
Write-offs | (8,417) | (32,100) |
Refunds/returns | (323,493) | (260,162) |
Foreign exchanges variations | 55,382 | 222,564 |
Balance at end of the period | 1,651,533 | 1,546,720 |
Current assets | 258,212 | 144,192 |
Non current assets | 1,393,321 | 1,402,528 |
Maintenance reserve deposits [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Balance at beginning of the period | 1,321,490 | 1,078,135 |
Additions | 343,727 | 317,698 |
Write-offs | (8,417) | (31,132) |
Refunds/returns | (210,356) | (236,987) |
Foreign exchanges variations | 52,454 | 193,776 |
Balance at end of the period | 1,498,898 | 1,321,490 |
Current assets | 258,212 | |
Non current assets | 1,240,686 | |
Security deposits [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Balance at beginning of the period | 225,230 | 180,992 |
Additions | 37,614 | 39,593 |
Write-offs | (968) | |
Refunds/returns | (113,137) | (23,175) |
Foreign exchanges variations | 2,928 | 28,788 |
Balance at end of the period | 152,635 | R$ 225230 |
Non current assets | R$ 152635 |
Property, equipment and right_3
Property, equipment and right of the use assets - Additional Information (Detail) - BRL (R$) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Imapairment loss | R$ 2032207000 | |
Gain on sale lease back transaction | 6,260,000 | |
Aircraft [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Imapairment loss | 16,325,000 | |
Net selling expense | R$ 15854000 | R$ 144251000 |
Sale and Leaseback [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net selling expense | R$ 6570000 |
Property, equipment and right_4
Property, equipment and right of the use assets - Schedule of Property and Equipment (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | R$ 1968840 | R$ 1842239 | R$ 1880771 |
As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 1,842,239 | ||
Leasehold improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 218,597 | ||
Leasehold improvements [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 93,285 | ||
Equipment and facilities [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 70,579 | ||
Equipment and facilities [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 49,243 | ||
Vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 2,079 | ||
Vehicles [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 2,207 | ||
Furniture and fixture [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 5,564 | ||
Furniture and fixture [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 5,029 | ||
Aircraft equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 914,605 | ||
Aircraft equipment [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 1,039,473 | ||
Aircraft and engines [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 500,999 | ||
Aircraft and engines [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 459,056 | ||
Advance payments for acquisition of aircrafts [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 84,578 | ||
Advance payments for acquisition of aircrafts [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 112,923 | ||
Construction in progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 171,839 | ||
Construction in progress [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 81,023 | ||
Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 3,460,785 | ||
Cost [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 2,500,776 | ||
Cost [member] | Leasehold improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 296,728 | ||
Cost [member] | Leasehold improvements [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 146,315 | ||
Cost [member] | Equipment and facilities [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 176,814 | ||
Cost [member] | Equipment and facilities [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 130,655 | ||
Cost [member] | Vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 3,614 | ||
Cost [member] | Vehicles [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 3,238 | ||
Cost [member] | Furniture and fixture [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 20,683 | ||
Cost [member] | Furniture and fixture [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 18,797 | ||
Cost [member] | Aircraft equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 1,856,138 | ||
Cost [member] | Aircraft equipment [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 1,378,352 | ||
Cost [member] | Aircraft and engines [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 850,391 | ||
Cost [member] | Aircraft and engines [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 629,473 | ||
Cost [member] | Advance payments for acquisition of aircrafts [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 84,578 | ||
Cost [member] | Advance payments for acquisition of aircrafts [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 112,923 | ||
Cost [member] | Construction in progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 171,839 | ||
Cost [member] | Construction in progress [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 81,023 | ||
Accumulated depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (1,491,945) | ||
Accumulated depreciation [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (658,537) | ||
Accumulated depreciation [member] | Leasehold improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (78,131) | ||
Accumulated depreciation [member] | Leasehold improvements [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (53,030) | ||
Accumulated depreciation [member] | Equipment and facilities [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (106,235) | ||
Accumulated depreciation [member] | Equipment and facilities [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (81,412) | ||
Accumulated depreciation [member] | Vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (1,535) | ||
Accumulated depreciation [member] | Vehicles [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (1,031) | ||
Accumulated depreciation [member] | Furniture and fixture [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (15,119) | ||
Accumulated depreciation [member] | Furniture and fixture [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (13,768) | ||
Accumulated depreciation [member] | Aircraft equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (941,533) | ||
Accumulated depreciation [member] | Aircraft equipment [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (338,879) | ||
Accumulated depreciation [member] | Aircraft and engines [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | R$ 349392 | ||
Accumulated depreciation [member] | Aircraft and engines [member] | As Restated [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | R$ 170417 |
Property, equipment and right_5
Property, equipment and right of the use assets - Summary of Reconciliation of Changes in Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | R$ 1842239000 |
Impairment | 2,032,207,000 |
Balance, end of period | 1,968,840,000 |
As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 1,842,239,000 |
Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, end of period | 218,597,000 |
Leasehold improvements [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 93,285,000 |
Equipment and facilities [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, end of period | 70,579,000 |
Equipment and facilities [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 49,243,000 |
Vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, end of period | 2,079,000 |
Vehicles [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 2,207,000 |
Furniture and fixture [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, end of period | 5,564,000 |
Furniture and fixture [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 5,029,000 |
Aircraft equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, end of period | 914,605,000 |
Aircraft equipment [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 1,039,473,000 |
Aircraft and engines [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, end of period | 500,999,000 |
Aircraft and engines [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 459,056,000 |
Advance payments for acquisition of aircrafts [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, end of period | 84,578,000 |
Advance payments for acquisition of aircrafts [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 112,923,000 |
Construction in progress [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, end of period | 171,839,000 |
Construction in progress [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 81,023,000 |
Cost [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Acquisitions | 1,262,152,000 |
Disposals/ Write-offs | (273,040,000) |
Transfers | (29,103,000) |
Balance, end of period | 3,460,785,000 |
Cost [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 2,500,776,000 |
Cost [member] | Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Acquisitions | 124,181,000 |
Disposals/ Write-offs | (3,118,000) |
Transfers | 29,350,000 |
Balance, end of period | 296,728,000 |
Cost [member] | Leasehold improvements [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 146,315,000 |
Cost [member] | Equipment and facilities [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Acquisitions | 48,101,000 |
Disposals/ Write-offs | (2,091,000) |
Transfers | 149,000 |
Balance, end of period | 176,814,000 |
Cost [member] | Equipment and facilities [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 130,655,000 |
Cost [member] | Vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Acquisitions | 376,000 |
Balance, end of period | 3,614,000 |
Cost [member] | Vehicles [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 3,238,000 |
Cost [member] | Furniture and fixture [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Acquisitions | 1,891,000 |
Disposals/ Write-offs | (5,000) |
Balance, end of period | 20,683,000 |
Cost [member] | Furniture and fixture [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 18,797,000 |
Cost [member] | Aircraft equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Acquisitions | 566,152,000 |
Disposals/ Write-offs | (72,835,000) |
Transfers | (15,531,000) |
Balance, end of period | 1,856,138,000 |
Cost [member] | Aircraft equipment [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 1,378,352,000 |
Cost [member] | Aircraft and engines [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Acquisitions | 146,527,000 |
Disposals/ Write-offs | (149,910,000) |
Transfers | 224,301,000 |
Balance, end of period | 850,391,000 |
Cost [member] | Aircraft and engines [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 629,473,000 |
Cost [member] | Advance payments for acquisition of aircrafts [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Acquisitions | 55,649,000 |
Disposals/ Write-offs | (45,081,000) |
Transfers | (38,913,000) |
Balance, end of period | 84,578,000 |
Cost [member] | Advance payments for acquisition of aircrafts [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 112,923,000 |
Cost [member] | Construction in progress [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Acquisitions | 319,275,000 |
Transfers | (228,459,000) |
Balance, end of period | 171,839,000 |
Cost [member] | Construction in progress [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | 81,023,000 |
Accumulated depreciation [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation for the period | (221,654,000) |
Disposals/ Write-offs | 75,422,000 |
Impairment | (687,176,000) |
Balance, end of period | (1,491,945,000) |
Accumulated depreciation [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | (658,537,000) |
Accumulated depreciation [member] | Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation for the period | (25,157,000) |
Disposals/ Write-offs | 186,000 |
Impairment | (130,000) |
Balance, end of period | (78,131,000) |
Accumulated depreciation [member] | Leasehold improvements [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | (53,030,000) |
Accumulated depreciation [member] | Equipment and facilities [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation for the period | (17,265,000) |
Disposals/ Write-offs | 687,000 |
Impairment | (8,245,000) |
Balance, end of period | (106,235,000) |
Accumulated depreciation [member] | Equipment and facilities [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | (81,412,000) |
Accumulated depreciation [member] | Vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation for the period | (504,000) |
Balance, end of period | (1,535,000) |
Accumulated depreciation [member] | Vehicles [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | (1,031,000) |
Accumulated depreciation [member] | Furniture and fixture [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation for the period | (1,356,000) |
Disposals/ Write-offs | 5,000 |
Balance, end of period | (15,119,000) |
Accumulated depreciation [member] | Furniture and fixture [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | (13,768,000) |
Accumulated depreciation [member] | Aircraft equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation for the period | (143,550,000) |
Disposals/ Write-offs | 42,249,000 |
Impairment | (501,353,000) |
Balance, end of period | (941,533,000) |
Accumulated depreciation [member] | Aircraft equipment [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | (338,879,000) |
Accumulated depreciation [member] | Aircraft and engines [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation for the period | (33,822,000) |
Disposals/ Write-offs | 32,295,000 |
Impairment | (177,448,000) |
Balance, end of period | (349,392,000) |
Accumulated depreciation [member] | Aircraft and engines [member] | As Restated [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Balance, beginning of period | R$ 170417000 |
Property, equipment and right_6
Property, equipment and right of the use assets - Summary of Aircraft Lease and others (Detail) - BRL (R$) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | R$ 7087412 | R$ 4926326000 |
Cost [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 13,135,776,000 | |
Accumulated depreciation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | (6,048,364) | |
Aircraft Of Operating Lease [Member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 6,281,933 | 3,617,062,000 |
Aircraft Of Operating Lease [Member] | Cost [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 10,901,791 | |
Aircraft Of Operating Lease [Member] | Accumulated depreciation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | (4,619,858,000) | |
Aircraft Of Finance Lease [Member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 253,463,000 | 924,272,000 |
Aircraft Of Finance Lease [Member] | Cost [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 1,169,636 | |
Aircraft Of Finance Lease [Member] | Accumulated depreciation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | (916,173,000) | |
Engines And Simulators [Member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 249,102,000 | 143,829,000 |
Engines And Simulators [Member] | Cost [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 484,597,000 | |
Engines And Simulators [Member] | Accumulated depreciation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | (235,495,000) | |
Vehicles [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 3,111,000 | 2,521,000 |
Vehicles [member] | Cost [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 10,238,000 | |
Vehicles [member] | Accumulated depreciation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | (7,127,000) | |
Properties [Member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 50,125,000 | 54,150,000 |
Properties [Member] | Cost [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 114,167,000 | |
Properties [Member] | Accumulated depreciation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | (64,042,000) | |
Equipments [Member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 4,502,000 | 12,994,000 |
Equipments [Member] | Cost [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 20,088,000 | |
Equipments [Member] | Accumulated depreciation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | (15,584,000) | |
Transports [Member] | Cost [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 12,065,000 | |
Transports [Member] | Accumulated depreciation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | (12,065,000) | |
Restoration of aircraft and engines [Member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 245,176,000 | R$ 171498000 |
Restoration of aircraft and engines [Member] | Cost [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | 423,194,000 | |
Restoration of aircraft and engines [Member] | Accumulated depreciation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right of use assets | R$ 178020000 |
Property, equipment and right_7
Property, equipment and right of the use assets - Summary of Charges in right of Use asset balance (Detail) | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | R$ 1842239000 |
Impairment | 2,032,207,000 |
Balance, end of period | 1,968,840,000 |
Vehicles [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, end of period | 2,079,000 |
Cost [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Acquisitions | 1,262,152,000 |
Disposals/Write-offs | (273,040,000) |
Transfers | (29,103,000) |
Balance, end of period | 3,460,785,000 |
Cost [member] | Vehicles [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Acquisitions | 376,000 |
Balance, end of period | 3,614,000 |
Cost [member] | Right-of-use assets [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 8,987,268,000 |
Acquisitions | 4,341,842,000 |
Disposals/Write-offs | (119,043) |
Transfers | (74,291,000) |
Balance, end of period | 13,135,776,000 |
Cost [member] | Right-of-use assets [member] | Aircraft Of Operating Lease [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 6,943,314,000 |
Acquisitions | 4,002,981,000 |
Disposals/Write-offs | (42,570,000) |
Transfers | (1,934,000) |
Balance, end of period | 10,901,791 |
Cost [member] | Right-of-use assets [member] | Aircraft Of Finance Lease [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 1,289,161,000 |
Acquisitions | 28,455,000 |
Disposals/Write-offs | (75,623,000) |
Transfers | (72,357,000) |
Balance, end of period | 1,169,636 |
Cost [member] | Right-of-use assets [member] | Engines And Simulators [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 336,731,000 |
Acquisitions | 147,866,000 |
Balance, end of period | 484,597,000 |
Cost [member] | Right-of-use assets [member] | Properties [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 105,754,000 |
Acquisitions | 8,413,000 |
Balance, end of period | 114,167,000 |
Cost [member] | Right-of-use assets [member] | Vehicles [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 7,999,000 |
Acquisitions | 2,239,000 |
Balance, end of period | 10,238,000 |
Cost [member] | Right-of-use assets [member] | Equipments [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 20,767,000 |
Acquisitions | 171,000 |
Disposals/Write-offs | (850,000) |
Balance, end of period | 20,088,000 |
Cost [member] | Right-of-use assets [member] | Transports [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 0 |
Acquisitions | 12,065,000 |
Balance, end of period | 12,065,000 |
Cost [member] | Right-of-use assets [member] | Restoration of aircraft and engines [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 283,542,000 |
Acquisitions | 139,652,000 |
Balance, end of period | 423,194,000 |
Accumulated depreciation [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciations | (221,654,000) |
Disposals/Write-offs | 75,422,000 |
Impairment | (687,176,000) |
Balance, end of period | (1,491,945,000) |
Accumulated depreciation [member] | Vehicles [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciations | (504,000) |
Balance, end of period | (1,535,000) |
Accumulated depreciation [member] | Right-of-use assets [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | (4,060,943) |
Depreciations | (1,034.823) |
Disposals/Write-offs | 53,205,000 |
Transfers | 27,888,000 |
Impairment | (1,033,691) |
Balance, end of period | (6,048,364,000) |
Accumulated depreciation [member] | Right-of-use assets [member] | Aircraft Of Operating Lease [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | (3,326,252) |
Depreciations | (875,170) |
Disposals/Write-offs | 42,570,000 |
Impairment | (461,006) |
Balance, end of period | (4,619,858,000) |
Accumulated depreciation [member] | Right-of-use assets [member] | Aircraft Of Finance Lease [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | (364,891,000) |
Depreciations | (52,848) |
Disposals/Write-offs | 10,019,000 |
Transfers | 27,888,000 |
Impairment | (536,341) |
Balance, end of period | (916,173,000) |
Accumulated depreciation [member] | Right-of-use assets [member] | Engines And Simulators [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | (192,902,000) |
Depreciations | (38,723) |
Impairment | (3,870) |
Balance, end of period | (235,495,000) |
Accumulated depreciation [member] | Right-of-use assets [member] | Properties [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | (51,604,000) |
Depreciations | (12,438) |
Balance, end of period | (64,042,000) |
Accumulated depreciation [member] | Right-of-use assets [member] | Vehicles [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | (5,478,000) |
Depreciations | (1,649) |
Balance, end of period | (7,127,000) |
Accumulated depreciation [member] | Right-of-use assets [member] | Equipments [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | (7,773,000) |
Depreciations | (8,427) |
Disposals/Write-offs | 616,000 |
Balance, end of period | (15,584,000) |
Accumulated depreciation [member] | Right-of-use assets [member] | Transports [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciations | (12,065) |
Balance, end of period | (12,065,000) |
Accumulated depreciation [member] | Right-of-use assets [member] | Restoration of aircraft and engines [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | (112,043,000) |
Depreciations | (33,503) |
Impairment | (32,474) |
Balance, end of period | R$ 178020000 |
Property, equipment and right_8
Property, equipment and right of the use assets - Summary of maintenance (Detail) - BRL (R$) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | R$ 1968840000 | R$ 1842239000 | R$ 1880771000 |
Right of Use Asset Maintainance [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | 497,391,000 | 632,900,000 | |
Right of Use Asset Maintainance [Member] | Checks [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | 48,190,000 | 73,977,000 | |
Right of Use Asset Maintainance [Member] | Checks In Progress [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | 23,662,000 | ||
Right of Use Asset Maintainance [Member] | Engines Maintenance [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | 425,539,000 | 558,923,000 | |
Cost [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | 3,460,785,000 | ||
Cost [member] | Right of Use Asset Maintainance [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | 1,374,925,000 | 923,517,000 | |
Cost [member] | Right of Use Asset Maintainance [Member] | Checks [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | 201,712,000 | 143,866,000 | |
Cost [member] | Right of Use Asset Maintainance [Member] | Checks In Progress [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | 23,662,000 | ||
Cost [member] | Right of Use Asset Maintainance [Member] | Engines Maintenance [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | 1,149,551,000 | 779,651,000 | |
Accumulated Depreciation [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | (1,491,945,000) | ||
Accumulated Depreciation [member] | Right of Use Asset Maintainance [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | (877,534,000) | (290,617) | |
Accumulated Depreciation [member] | Right of Use Asset Maintainance [Member] | Checks [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | (153,522,000) | (69,889) | |
Accumulated Depreciation [member] | Right of Use Asset Maintainance [Member] | Engines Maintenance [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Property, plant and equipment | R$ 724012000 | R$ 220728 |
Property, equipment and right_9
Property, equipment and right of the use assets - Changes in right of use maintenance balances (Detail) | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | R$ 1842239000 |
Balance, end of period | 1,968,840,000 |
Cost [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Acquisitions | 1,262,152,000 |
Disposals/Write-offs | (273,040,000) |
Transfers | (29,103,000) |
Balance, end of period | 3,460,785,000 |
Accumulated depreciation [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciations | (221,654,000) |
Disposals/Write-offs | 75,422,000 |
Balance, end of period | (1,491,945,000) |
Right of Use Asset Maintainance [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 632,900,000 |
Balance, end of period | 497,391,000 |
Right of Use Asset Maintainance [Member] | Cost [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 923,517,000 |
Acquisitions | 534,502,000 |
Disposals/Write-offs | (88,102,000) |
Transfers | 5,008,000 |
Balance, end of period | 1,374,925,000 |
Right of Use Asset Maintainance [Member] | Accumulated depreciation [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | (290,617) |
Depreciations | (304,356,000) |
Disposals/Write-offs | 45,104,000 |
Balance, end of period | (877,534,000) |
Impairment loss | (327,665,000) |
Right of Use Asset Maintainance [Member] | Checks [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 73,977,000 |
Balance, end of period | 48,190,000 |
Right of Use Asset Maintainance [Member] | Checks [Member] | Cost [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 143,866,000 |
Acquisitions | 63,493,000 |
Disposals/Write-offs | (9,971,000) |
Transfers | 4,324,000 |
Balance, end of period | 201,712,000 |
Right of Use Asset Maintainance [Member] | Checks [Member] | Accumulated depreciation [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | (69,889) |
Depreciations | (49,313,000) |
Disposals/Write-offs | 3,101,000 |
Balance, end of period | (153,522,000) |
Impairment loss | (37,421,000) |
Right of Use Asset Maintainance [Member] | Checks In Progress [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, end of period | 23,662,000 |
Right of Use Asset Maintainance [Member] | Checks In Progress [Member] | Cost [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Acquisitions | 45,527,000 |
Disposals/Write-offs | (10,546,000) |
Transfers | (11,319,000) |
Balance, end of period | 23,662,000 |
Right of Use Asset Maintainance [Member] | Engines Maintenance [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 558,923,000 |
Balance, end of period | 425,539,000 |
Right of Use Asset Maintainance [Member] | Engines Maintenance [Member] | Cost [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | 779,651,000 |
Acquisitions | 425,482,000 |
Disposals/Write-offs | (67,585,000) |
Transfers | 12,003,000 |
Balance, end of period | 1,149,551,000 |
Right of Use Asset Maintainance [Member] | Engines Maintenance [Member] | Accumulated depreciation [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of period | (220,728) |
Depreciations | (255,043,000) |
Disposals/Write-offs | 42,003,000 |
Balance, end of period | (724,012,000) |
Impairment loss | R$ 290244000 |
Intangible assets - Schedule of
Intangible assets - Schedule of Intangible Assets and Goodwill (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | R$ 1087484 | R$ 1016556 | R$ 961000 |
Goodwill [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | 753,502 | 753,502 | |
Airport operating licenses [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | 82,196 | 82,196 | |
Software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | 251,786 | 180,858 | |
Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | 1,325,602 | 1,193,155 | |
Cost [member] | Goodwill [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | 753,502 | 753,502 | |
Cost [member] | Airport operating licenses [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | 82,196 | 82,196 | |
Cost [member] | Software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | 489,904 | 357,457 | |
Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | (238,118) | (176,599) | |
Accumulated amortization [member] | Software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | R$ 238118 | R$ 176599 |
Intangible assets - Schedule _2
Intangible assets - Schedule of Changes in Intangible Assets (Detail) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill at beginning of period | R$ 1016556 |
Disposals/ Written-off | |
Transfers | |
Intangible assets and goodwill at end of period | 1,087,484 |
Goodwill [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill at beginning of period | 753,502 |
Intangible assets and goodwill at end of period | 753,502 |
Airport operating licenses [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill at beginning of period | 82,196 |
Intangible assets and goodwill at end of period | 82,196 |
Software [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill at beginning of period | 180,858 |
Intangible assets and goodwill at end of period | 251,786 |
Costs [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill at beginning of period | 1,193,155 |
Acquisitions | 132,447 |
Intangible assets and goodwill at end of period | 1,325,602 |
Costs [member] | Goodwill [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill at beginning of period | 753,502 |
Intangible assets and goodwill at end of period | 753,502 |
Costs [member] | Airport operating licenses [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill at beginning of period | 82,196 |
Intangible assets and goodwill at end of period | 82,196 |
Costs [member] | Software [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill at beginning of period | 357,457 |
Acquisitions | 132,447 |
Intangible assets and goodwill at end of period | 489,904 |
Accumulated amortization [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill at beginning of period | (176,599) |
Amortization for the year | (61,519) |
Intangible assets and goodwill at end of period | (238,118) |
Accumulated amortization [member] | Software [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Intangible assets and goodwill at beginning of period | (176,599) |
Amortization for the year | (61,519) |
Intangible assets and goodwill at end of period | R$ 238118 |
Intangible assets - Schedule _3
Intangible assets - Schedule of Changes in Intangible Assets (Parenthetical) (Detail) R$ in Thousands | Dec. 31, 2019BRL (R$) |
TudoAzul S.A. [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Goodwill | R$ 753502 |
Intangible assets - Additional
Intangible assets - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Changes in intangible assets and goodwill [abstract] | |
Projection period used in impairment tests of goodwill and other intangible assets | 5 years |
Intangible assets - Summary of
Intangible assets - Summary of Variations in the Earnings Before Interest and Tax Margin and Nominal Discount Rate (Detail) | Dec. 31, 2019 |
Variations in Earnings Before Interest and Tax One [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Appreciation (depreciation) | 1.00% |
Discount rate before taxes | 9.80% |
EBIT | (9.50%) |
Variations in Earnings Before Interest and Tax Two [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Appreciation (depreciation) | 0.00% |
Discount rate before taxes | 8.80% |
EBIT | (10.50%) |
Variations in Earnings Before Interest and Tax Three [member] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Appreciation (depreciation) | (1.00%) |
Discount rate before taxes | 7.80% |
EBIT | (11.50%) |
Income Tax and Social contrib_3
Income Tax and Social contribution - Schedule of Income Tax and Social Contribution (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major components of tax expense (income) [abstract] | |||
Loss before income tax and social contribution | R$ 2536265 | R$ 452926 | R$ 414129 |
Combined tax rate | 34.00% | 34.00% | 34.00% |
Income tax and social contribution statutory rate | R$ 862330 | R$ 153995 | R$ 140804 |
Adjustments to calculate the effective tax rate: | |||
Taxable profit on foreign subsidiaries | (3,020) | (21,867) | (13,496) |
Exchange differences on foreign subsidiaries | (7,321) | 24,917 | 27,064 |
Unrecorded deferred tax on tax loss and on temporary differences | (880,375) | (400,187) | 56,598 |
Deferred income tax on tax losses included in the PERT | 84,712 | 83,143 | |
Permanent differences | 76,958 | 65,971 | (8,006) |
Other | (105) | (5,634) | 5,885 |
Total income tax and social contribution expenses | 133,179 | (182,805) | 10,384 |
Current income tax and social contribution | (2,228) | (11,224) | 2,875 |
Deferred income tax and social contribution | 135,407 | (171,581) | 7,509 |
Total income tax and social contribution expenses | R$ 133179 | R$ 182805 | R$ 10384 |
Income Tax and Social contrib_4
Income Tax and Social contribution - Schedule of Breakdown of Deferred Income Tax and Social Contribution (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | R$ 1906297 | R$ 991500 | |
Net deferred tax assets / (liabilities) on temporary adjustments recognized | (259,785) | (311,391) | |
Net deferred tax assets / (liabilities) – recognized | (242,516) | (293,211) | R$ 142102 |
Provision for tax civil and labor risks [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | 21,819 | 27,524 | |
Deferred revenue of TudoAzul program [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | (148,963) | (132,740) | |
Aircraft lease expense [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | 1,312,552 | 1,371,421 | |
Depreciation of aircraft and engines [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | (48,899) | (33,973) | |
Exchange rate [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | (16,498) | (13,397) | |
Deferred gain related to aircraft sold [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | 19,747 | 37,628 | |
Cash flow hedge reserve | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | 53,977 | 52,349 | |
Fair value of TAP convertible bonds [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | (243,288) | (274,520) | |
Fair value of other investments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | (21,963) | ||
Other provisions [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | 116,810 | ||
Financial instruments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | (201,738) | (73,735) | |
Impairment [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | 989,242 | ||
Fair value of aircraft [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | (397) | ||
Fair value of slots [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | (27,947) | ||
Other on business combination fair value adjustment [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | (2,707) | ||
Others [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net deferred tax (liabilities) | 73,497 | 61,993 | |
Deferred tax assets on net operating losses [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets recognized on net operating losses | R$ 17270 | R$ 18180 |
Income Tax and Social contrib_5
Income Tax and Social contribution - Schedule of Income Tax Losses Offsetting Against Future Taxable Profits (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net tax losses | R$ 1971779 | R$ 1829244 |
Income tax loss carryforwards [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Income tax loss carryforwards | 492,945 | 457,311 |
Social contribution negative base tax carryforwards [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Social contribution negative base tax carryforwards | R$ 177460 | R$ 164632 |
Income Tax and Social contrib_6
Income Tax and Social contribution - Schedule of Income Tax Losses Offsetting Against Future Taxable Profits (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | |
Percentage of income tax loss carryforwards | 25.00% |
Percentage of social contribution negative base tax carryforwards | 9.00% |
Income Tax and Social contrib_7
Income Tax and Social contribution - Additional Information (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Major components of tax expense (income) [abstract] | ||
Deferred Tax Assets Excess Of Possible Recovery | R$ 259785 | |
Tax losses that are recognized relating to deferred tax liability | R$ 17270 | R$ 670405 |
Loans and financing - Schedule
Loans and financing - Schedule of Loans and Debentures (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [abstract] | |||
Loans | R$ 2825749 | R$ 2025607 | |
Debentures | 692,407 | 730,519 | |
Total loans and financing | 3,518,156 | 2,756,126 | |
Current | 481,227 | 158,813 | R$ 419198 |
Non-current | R$ 3036929 | R$ 2597313 | R$ 2159241 |
Loans and financing - Schedul_2
Loans and financing - Schedule of Loans (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Loans | R$ 2825749 | R$ 2025607 |
Current position | 233,487 | 119,676 |
Non-current position | 2,592,262 | 1,905,931 |
Fair value of designated derivatives | (317,787) | (266,404) |
Working capital [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Fair value of designated derivatives | (303,507) | |
Hedge noncurrent position [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Fair value of designated derivatives | (317,787) | (266,404) |
US Dollars [member] | Aircraft and engine acquisition [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Loans | 896,232 | 100,042 |
Fair value of designated derivatives | R$ 10971 | |
US Dollars [member] | Aircraft and engine acquisition [member] | US Treasury [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable spread on interest rate (as a percent) | 325.00% | |
US Dollars [member] | Aircraft and engine acquisition [member] | Bottom of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 5.37% | |
US Dollars [member] | Aircraft and engine acquisition [member] | Bottom of range [member] | LIBOR [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable spread on interest rate (as a percent) | 2.55% | |
US Dollars [member] | Aircraft and engine acquisition [member] | Top of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 6.07% | |
US Dollars [member] | Aircraft and engine acquisition [member] | Top of range [member] | LIBOR [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable spread on interest rate (as a percent) | 3.60% | |
US Dollars [member] | Senior Notes 1 [member] | Bottom of range [member] | LIBOR [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable spread on interest rate (as a percent) | 0.88% | |
US Dollars [member] | Senior Notes 1 [member] | Top of range [member] | LIBOR [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable spread on interest rate (as a percent) | 5.90% | |
US Dollars [member] | Working capital [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Loans | R$ 1727882 | 1,656,947 |
Fair value of designated derivatives | (303,507) | (266,404) |
Brazil, Brazil Real [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Fair value of designated derivatives | (317,787) | |
Brazil, Brazil Real [member] | Aircraft and engine acquisition [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Loans | 164,280 | 192,861 |
Fair value of designated derivatives | R$ 3309 | |
Brazil, Brazil Real [member] | Aircraft and engine acquisition [member] | Bottom of range [member] | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable spread on interest rate (as a percent) | 6.00% | |
Brazil, Brazil Real [member] | Aircraft and engine acquisition [member] | Top of range [member] | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable spread on interest rate (as a percent) | 6.50% | |
Brazil, Brazil Real [member] | Aircraft and engine acquisition [member] | Top of range [member] | SELIC rates [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 5.46% | |
Brazil, Brazil Real [member] | Finance lease [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Loans | 2,381 | |
Brazil, Brazil Real [member] | Finance lease [member] | Bottom of range [member] | Local interbank deposit certificate rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable spread on interest rate (as a percent) | 3.97% | |
Brazil, Brazil Real [member] | Finance lease [member] | Top of range [member] | Local interbank deposit certificate rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable spread on interest rate (as a percent) | 4.91% | |
Brazil, Brazil Real [member] | Working capital [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Loans | R$ 37355 | R$ 73376 |
Brazil, Brazil Real [member] | Working capital [member] | Bottom of range [member] | Local interbank deposit certificate rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable spread on interest rate (as a percent) | 125.00% | |
Brazil, Brazil Real [member] | Working capital [member] | Top of range [member] | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 5.00% | |
Brazil, Brazil Real [member] | Working capital [member] | Top of range [member] | Local interbank deposit certificate rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Variable spread on interest rate (as a percent) | 126.00% |
Loans and financing - Additiona
Loans and financing - Additional Information (Detail) R$ in Thousands, $ in Millions | Apr. 01, 2018 | Dec. 31, 2019BRL (R$) | Oct. 31, 2017USD ($) |
Disclosure of detailed information about borrowings [line items] | |||
Exchange rate | |||
Loans and financing subject to financial covenants | R$ 1366842 | ||
Undrawn borrowing facilities | R$ 198714 | ||
Senior unsecured notes due 2024 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Credit derivative amount | $ | $ 400 | ||
Interest rate | 5.875% | ||
Senior note bonds [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Exchange rate | 4.7500 | ||
Senior note bonds [member] | Interest rate swap and currency swap contracts [member] | Interbank certificate of deposit rate CDI [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 99.30% | ||
Senior note bonds [member] | Top of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Exchange rate | 3.2865 |
Loans and financing - Schedul_3
Loans and financing - Schedule of Senior Notes Swaps (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | |
Interest rate swap and currency swap contracts [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal amount | $ 400 |
Interest rate swap and currency swap contracts [member] | Call option bought [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 3.2865 |
Interest rate swap and currency swap contracts [member] | Call option sold [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 4.7500 |
April 2018 to April 2019 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Coupon payments | $ 12 |
October 2019 to October 2024 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Coupon payments | $ 12 |
October 2019 to October 2024 [member] | Put option bought [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 3.2865 |
October 2019 to October 2024 [member] | Call option sold [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 4.7500 |
Loans and financing - Schedul_4
Loans and financing - Schedule of Derivative Transactions with Banks Counterparties to Swap the Senior Notes (Detail) R$ in Millions, $ in Millions | Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) | Oct. 31, 2017USD ($) |
Senior unsecured notes due 2024 [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Credit derivative amount | $ 400 | ||
Interest rate | 5.875% | ||
Senior unsecured notes due 2024 [member] | Fixed interest rate [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Credit derivative amount | $ 400 | ||
Interest rate | 5.875% | 5.875% | |
Swap [member] | Floating interest rate [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Credit derivative amount | R$ | R$ 1314600 | ||
Floating interest rate | 99.30% | 99.30% |
Loans and financing - Schedul_5
Loans and financing - Schedule of Long Term Loans Maturity (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total long term loans | R$ 2592262 | R$ 1905931 |
2020 [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total long term loans | 191,437 | |
2021 [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total long term loans | 202,798 | 59,875 |
2022 [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total long term loans | 270,899 | 49,560 |
2023 [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total long term loans | 258,422 | 37,016 |
After 2023 [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total long term loans | R$ 1860143 | R$ 1568043 |
Loans and financing - Schedul_6
Loans and financing - Schedule of Assets Serve as Guarantees to Secure the Loans (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Aircraft under finance lease [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Equipment and right of use assets (carrying value) used as collateral (Note 14) | R$ 7285497 | R$ 5144219 |
Loans and financing - Schedul_7
Loans and financing - Schedule of Debentures (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debentures issue | R$ 692407 | R$ 730519 |
Current position | 247,740 | 39,137 |
Non-current position | 444,667 | 691,382 |
Eight issue [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debentures issue | 40,758 | |
Nine issue [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debentures issue | 495,548 | 493,990 |
Tenth issue [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debentures issue | R$ 196859 | R$ 195771 |
Local interbank deposit certificate rate [member] | Eight issue [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Variable spread on interest rate (as a percent) | 1.50% | |
Local interbank deposit certificate rate [member] | Nine issue [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Variable spread on interest rate (as a percent) | 122.00% | |
Local interbank deposit certificate rate [member] | Tenth issue [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Variable spread on interest rate (as a percent) | 117.00% |
Loans and financing - Schedul_8
Loans and financing - Schedule of Long Term Debentures Maturity (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total long term debentures | R$ 444667 | R$ 691382 |
2020 [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total long term debentures | 296,338 | |
2021 [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total long term debentures | 336,580 | 296,777 |
2022 [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total long term debentures | 89,044 | 49,131 |
2023 [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total long term debentures | R$ 19043 | R$ 49136 |
Loans and financing - Schedul_9
Loans and financing - Schedule of Covenants Related to Leverage and Debt Coverage Ratios (Detail) - Top of range [member] - Ninth and Tenth Issuance Of Debentures [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | |
Debt coverage ratio | 1.2 |
Leverage ratio | 6.5 |
Aircraft Financing [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Debt coverage ratio | 1.2 |
Leverage ratio | 5.5 |
Lease liabilities - Disclosure
Lease liabilities - Disclosure lease liabilities (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Lease liabilities [Line Items] | |||
Lease liabilities | R$ 12106621 | R$ 8919746 | |
Current liability | 1,585,233 | 1,237,909 | R$ 914600 |
Non-current liability | 10,521,388 | 7,681,837 | R$ 6428893 |
Aircraft [member] | |||
Disclosure of Lease liabilities [Line Items] | |||
Lease liabilities | 11,686,481 | 8,582,974 | |
Engines And Simulators [Member] | |||
Disclosure of Lease liabilities [Line Items] | |||
Lease liabilities | 347,911 | 254,227 | |
Properties [Member] | |||
Disclosure of Lease liabilities [Line Items] | |||
Lease liabilities | 60,648 | 65,151 | |
Vehicles [member] | |||
Disclosure of Lease liabilities [Line Items] | |||
Lease liabilities | 7,615 | 14,668 | |
Equipments [Member] | |||
Disclosure of Lease liabilities [Line Items] | |||
Lease liabilities | 3,089 | R$ 2726 | |
Transports [Member] | |||
Disclosure of Lease liabilities [Line Items] | |||
Lease liabilities | R$ 877 |
Lease liabilities - Disclosur_2
Lease liabilities - Disclosure of reconciliation of liabilities arising from financing activities (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Interest Accrual | R$ 806008 | R$ 625906 | R$ 556781 |
Aircraft and engines [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Weighted average rate | 8.20% | ||
Others [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Weighted average rate | 7.64% | ||
Right Of Use Leases With Purchase Option [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Weighted average rate | 6.15% | ||
Lease liabilities [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
December 31, 2018 | R$ 8919746 | ||
Additions | 4,208,390 | ||
Payments | (2,174,468) | ||
Interest Accrual | 806,008 | ||
Disposals | (25,054) | ||
Foreign exchange | 371,999 | ||
December 31,2019 | 12,106,621 | 8,919,746 | |
Lease liabilities [member] | Aircraft and engines [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
December 31, 2018 | 7,725,397 | ||
Additions | 4,153,314 | ||
Payments | (1,865,472) | ||
Interest Accrual | 726,613 | ||
Disposals | (24,775) | ||
Foreign exchange | 331,057 | ||
December 31,2019 | 11,046,134 | 7,725,397 | |
Lease liabilities [member] | Others [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
December 31, 2018 | 82,545 | ||
Additions | 22,888 | ||
Payments | (39,008) | ||
Interest Accrual | 8,628 | ||
Disposals | (279) | ||
Foreign exchange | (2,544) | ||
December 31,2019 | 72,230 | 82,545 | |
Lease liabilities [member] | Right Of Use Leases With Purchase Option [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
December 31, 2018 | 1,111,804 | ||
Additions | 32,188 | ||
Payments | (269,988) | ||
Interest Accrual | 70,767 | ||
Foreign exchange | 43,486 | ||
December 31,2019 | R$ 988257 | R$ 1111804 |
Lease liabilities - Summary of
Lease liabilities - Summary of lease repayment period (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Right of Use Leases Without Purchase Option [Member] | ||
Disclosure of Lease liabilities [Line Items] | ||
Leases remaining repayments period | 8 years 3 months 3 days | 7 years 3 months 29 days |
Right Of Use Leases With Purchase Option [Member] | ||
Disclosure of Lease liabilities [Line Items] | ||
Leases remaining repayments period | 4 years 2 months 26 days | 5 years 2 months 19 days |
Lease liabilities - Schedule of
Lease liabilities - Schedule of future minimum payments and the present value of the minimum leasing liabilities (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Detailed Information About Future Minimum Payments Of Lease Liabilities [Line Items] | ||
Minimum lease payment | R$ 16239050 | R$ 11921711 |
Financial expenses | (4,132,429) | (3,001,965) |
Net present value of minimum lease payments | 12,106,621 | 8,919,746 |
2019 [member] | ||
Disclosure Of Detailed Information About Future Minimum Payments Of Lease Liabilities [Line Items] | ||
Minimum lease payment | 1,957,371 | |
2020 [member] | ||
Disclosure Of Detailed Information About Future Minimum Payments Of Lease Liabilities [Line Items] | ||
Minimum lease payment | 2,481,457 | 1,828,394 |
2021 [member] | ||
Disclosure Of Detailed Information About Future Minimum Payments Of Lease Liabilities [Line Items] | ||
Minimum lease payment | 2,335,363 | 1,726,072 |
2022 [member] | ||
Disclosure Of Detailed Information About Future Minimum Payments Of Lease Liabilities [Line Items] | ||
Minimum lease payment | 2,406,701 | 1,798,733 |
2023 [member] | ||
Disclosure Of Detailed Information About Future Minimum Payments Of Lease Liabilities [Line Items] | ||
Minimum lease payment | 1,875,308 | 1,293,654 |
2024 [member] | ||
Disclosure Of Detailed Information About Future Minimum Payments Of Lease Liabilities [Line Items] | ||
Minimum lease payment | 1,560,055 | 992,525 |
Posterior a 2024 [member] | ||
Disclosure Of Detailed Information About Future Minimum Payments Of Lease Liabilities [Line Items] | ||
Minimum lease payment | R$ 5580166 | R$ 2324962 |
Lease liabilities - Schedule _2
Lease liabilities - Schedule of amounts recognized in statement of net income loss (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Presentation of leases for lessee [abstract] | |||
Depreciation expense of right-of-use assets | R$ 1034823 | R$ 973084 | R$ 790737 |
Interest expense on lease liabilities | (806,008) | (625,906) | (556,781) |
Finance income on lease receivalbes | 29,695 | 33,129 | 33,467 |
Expense relating to short-term leases | (79,855) | (34,434) | (35,619) |
Total amount recognised | R$ 1890991 | R$ 1600295 | R$ 1349670 |
Lease liabilities - Additional
Lease liabilities - Additional Information (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Aircraft equipment [member] | ||
Disclosure of Lease liabilities [Line Items] | ||
Aircraft sublease receivables | R$ 279504 | R$ 361738 |
Accounts payable - Summary of a
Accounts payable - Summary of accounts payable (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of Accounts Payable [Line Items] | ||
Accounts payable | R$ 1626577 | R$ 1450439 |
Local currency [member] | ||
Summary of Accounts Payable [Line Items] | ||
Accounts payable | 1,202,166 | 994,662 |
Foreign currency [member] | ||
Summary of Accounts Payable [Line Items] | ||
Accounts payable | R$ 424411 | R$ 455777 |
Air Traffic Liability - Schedul
Air Traffic Liability - Schedule of Air Traffic Liability (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Air traffic liability [abstract] | ||
Advance ticket sales | R$ 1408272 | R$ 1099978 |
TudoAzul program | 685,982 | 572,474 |
Total | R$ 2094254 | R$ 1672452 |
Provisions - Additional Informa
Provisions - Additional Information (Detail) - BRL (R$) R$ in Thousands | Feb. 22, 2017 | Dec. 31, 2019 |
Taxes [member] | ||
Disclosure of other provisions [line items] | ||
Rate of additional charge on COFINS | 1.00% | |
Labor [member] | ||
Disclosure of other provisions [line items] | ||
Claims relationg to labour lawsuits | R$ 66000 |
Provisions - Schedule of Change
Provisions - Schedule of Changes in Provisions (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of provisions [line items] | |||
Balance at the beginning of the year | R$ 750024 | R$ 553155 | |
Provisions recognized | 1,369,759 | 171,701 | |
Utilized provisions | (427,138) | (62,653) | |
Amortization of financial expense | 85,999 | 57,064 | |
Foreign exchanges variations | 34,708 | 87,821 | |
Balance at the ending of the year | 1,813,352 | 750,024 | |
Current | 323,441 | ||
Non-current | 1,489,911 | 713,941 | R$ 553155 |
Return of aircrafts and engines [Member] | |||
Disclosure of provisions [line items] | |||
Balance at the beginning of the year | 669,041 | 479,957 | |
Provisions recognized | 139,652 | 44,199 | |
Utilized provisions | (333,420) | ||
Amortization of financial expense | 67,366 | 57,064 | |
Foreign exchanges variations | 28,036 | 87,821 | |
Balance at the ending of the year | 570,675 | 669,041 | |
Current | 68,888 | ||
Non-current | 501,787 | ||
Provision for taxes ,civil and labor risks[member] | |||
Disclosure of provisions [line items] | |||
Balance at the beginning of the year | 80,983 | 73,198 | |
Provisions recognized | 100,241 | 70,438 | |
Utilized provisions | (93,718) | (62,653) | |
Foreign exchanges variations | 0 | ||
Balance at the ending of the year | 87,506 | R$ 80983 | |
Non-current | 87,506 | ||
Provision for onerous contract [member] | |||
Disclosure of provisions [line items] | |||
Provisions recognized | 1,129,866 | ||
Utilized provisions | 0 | ||
Amortization of financial expense | 18,633 | ||
Foreign exchanges variations | 6,672 | ||
Balance at the ending of the year | 1,155,171 | ||
Current | 254,553 | ||
Non-current | R$ 900618 |
Provisions - Schedule of Provis
Provisions - Schedule of Provisions (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of other provisions [line items] | |||
Other provisions | R$ 1813352 | R$ 750024 | R$ 553155 |
Taxes [member] | |||
Disclosure of other provisions [line items] | |||
Other provisions | 2,024 | 1,962 | |
Civil [member] | |||
Disclosure of other provisions [line items] | |||
Other provisions | 45,067 | 44,960 | |
Labor [member] | |||
Disclosure of other provisions [line items] | |||
Other provisions | 40,415 | 34,061 | |
Total Include All Other Provision [member] | |||
Disclosure of other provisions [line items] | |||
Other provisions | R$ 87506 | R$ 80983 |
Provisions - Schedule of Amount
Provisions - Schedule of Amounts of Claims for Which No Provision Recorded (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of contingent liabilities [line items] | ||
Proceedings for which no provision was recorded | R$ 316553 | R$ 265898 |
Taxes [member] | ||
Disclosure of contingent liabilities [line items] | ||
Proceedings for which no provision was recorded | 116,074 | 87,384 |
Civil [member] | ||
Disclosure of contingent liabilities [line items] | ||
Proceedings for which no provision was recorded | 77,360 | 43,203 |
Labor [member] | ||
Disclosure of contingent liabilities [line items] | ||
Proceedings for which no provision was recorded | R$ 123119 | R$ 135311 |
Equity - Schedule of Issued Cap
Equity - Schedule of Issued Capital and Authorized Shares, All Registered and Without Par Value (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of classes of share capital [line items] | |||
Issued capital | R$ 2243215 | R$ 2209415 | R$ 2163377 |
Common shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Shares issued (in shares) | 928,965,058 | 928,965,058 | |
Preference shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Shares issued (in shares) | 329,568,166 | 326,631,190 |
Equity - Additional Information
Equity - Additional Information (Detail) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019BRL (R$)VoteItemshares | Dec. 31, 2018BRL (R$)shares | Dec. 31, 2017BRL (R$) | |
Disclosure of classes of share capital [line items] | |||
Number of votes per common share | Vote | 1 | ||
Multiplier to price per share paid to the controlling shareholder used to determine the purchase price per share of preferred shares in a public offering | 75 | ||
Multiplier to the price per common share that preferred shares have the right to receive in the case of liquidation upon splitting of remaining assets among shareholders | 75 | ||
Multiplier to the price per common share used to determine the amount of dividends that may be received | 75 | ||
Issuance of shares due exercise of stock options | R$ | R$ 37767 | R$ 47634 | R$ 17899 |
Number of shares issued related to the exercise of stock options | shares | 2,936,976 | 4,877,470 | |
Issued capital | |||
Disclosure of classes of share capital [line items] | |||
Issuance of shares due exercise of stock options | R$ | R$ 33800 | R$ 46038 | R$ 13276 |
Equity - Capital Reserve - Addi
Equity - Capital Reserve - Additional Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital reserve | |||
Disclosure of classes of share capital [line items] | |||
Recognized compensation expense | R$ 18894 | R$ 22930 | R$ 29889000 |
Equity - Dividends and Other Co
Equity - Dividends and Other Comprehensive Loss - Additional Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of classes of share capital [abstract] | ||
Minimum mandatory dividend rate as a percent of net income | 0.10% | |
Change in fair value of cash flow hedges recognized in comprehensive income, net of tax | R$ 159261 | R$ 153969 |
Equity - Schedule of Treasury S
Equity - Schedule of Treasury Shares (Detail) - BRL (R$) shares in Thousands, R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Treasury Shares [abstract] | ||
Number of shares, Beginning Balance | 332,980 | 103,000 |
Number of shares, Purchased | 301,008 | 447,000 |
Number of shares, Cancelled | (189,742) | (217,020) |
Number of shares, Ending Balance | 444,246 | 332,980 |
Beginning Balance | R$ 10550 | R$ 2745 |
Purchased | 12,853 | 12,179 |
Cancelled | (7,838) | (4,374) |
Ending Balance | R$ 15565 | R$ 10550 |
Income (loss) per share - Sched
Income (loss) per share - Schedule of Income or Loss Per Common and Preferred Share (Detail) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator | |||
Net income (loss) | R$ 2403086 | R$ 635731 | R$ 424513 |
Denominator | |||
75 preferred shares | 75 | ||
Weighted average number of shares that would have been issued at average market price | 6,805,600 | ||
As Restated [Member] | |||
Denominator | |||
75 preferred shares | 75 | 75 | |
Weighted average number of shares that would have been issued at average market price | 6,400,619 | 9,253.991 | |
Share-based payments [member] | |||
Denominator | |||
Weighted average number of equivalent shares | 9,865,114 | ||
Share-based payments [member] | As Restated [Member] | |||
Denominator | |||
Weighted average number of equivalent shares | 11,530,390 | 15,446,459 | |
Common shares [member] | |||
Denominator | |||
Weighted average number of shares | 928,965,058 | ||
Weighted average number of equivalent shares | 25,571,811,221 | ||
Basic net income (loss) per share | R$ 0.09 | R$ 0.03 | R$ 0.02 |
Diluted net income (loss) per share | R$ 0.09 | R$ 0.03 | R$ 0.02 |
Common shares [member] | As Restated [Member] | |||
Denominator | |||
Weighted average number of shares | 928,965,058 | 928,965.058 | |
Weighted average number of equivalent shares | 25,327,251,414 | 23,669,013.177 | |
Basic net income (loss) per share | R$ 0.03 | ||
Diluted net income (loss) per share | (0.03) | ||
Preference shares [member] | |||
Denominator | |||
Weighted average number of shares | 328,571,282 | ||
Weighted average number of equivalent shares | 340,957,483 | ||
Basic net income (loss) per share | R$ 7.05 | (1.88) | R$ 1.35 |
Diluted net income (loss) per share | R$ 7.05 | R$ 1.88 | R$ 1.32 |
Preference shares [member] | As Restated [Member] | |||
Denominator | |||
Weighted average number of shares | 325,310,485 | 303,200.642 | |
Weighted average number of equivalent shares | 337,696,686 | 315,586.842 | |
Basic net income (loss) per share | R$ 1.88 | ||
Diluted net income (loss) per share | R$ 1.88 |
Income (loss) per share - Sch_2
Income (loss) per share - Schedule of Income or Loss Per Common and Preferred Share (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019shares | |
Common shares [member] | |
Earnings per share [line items] | |
Weighted average number of shares | 928,965,058 |
Stock conversion ratio | 75 |
Preference shares [member] | |
Earnings per share [line items] | |
Weighted average number of shares | 328,571,282 |
Shares outstanding | 12,386,200 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Financial Instruments (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | R$ 1397699 | R$ 1287781 |
Accounts payable [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at book value | 1,626,577 | 1,450,439 |
Financial liabilities at fair value | 1,626,577 | 1,450,439 |
Loans and financing [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at book value | 3,518,156 | 2,756,126 |
Financial liabilities at fair value | 3,504,754 | 2,742,359 |
Lease liabilities [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at book value | 12,106,621 | 8,919,746 |
Financial liabilities at fair value | 12,106,621 | 8,919,746 |
Derivative financial instruments [member] | Level 2/3 of fair value hierarchy [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at book value | 310,190 | 440,994 |
Financial liabilities at fair value | 310,190 | 440,994 |
Cash and cash equivalents [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 1,647,880 | 1,169,136 |
Cash and cash equivalents [member] | Level 1 of fair value hierarchy [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at book value | 1,647,880 | 1,169,136 |
Financial assets at fair value | 1,647,880 | 1,169,136 |
Cash and cash equivalents [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 1,647,880 | 1,169,136 |
Trade and other receivables [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at book value | 1,165,866 | 1,069,056 |
Financial assets at fair value | 1,165,866 | 1,069,056 |
Aircraft sublease receivables [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at book value | 279,504 | 361,738 |
Financial assets at fair value | 279,504 | 361,738 |
Short-term investments [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at book value | 62,009 | 517,423 |
Financial assets at fair value | 62,009 | 517,423 |
Long term investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 1,397,699 | 1,287,781 |
Long term investments [member] | Level 3 of fair value hierarchy [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at book value | 1,397,699 | 1,287,781 |
Financial assets at fair value | 1,397,699 | 1,287,781 |
Derivative financial instruments [member] | Level 2 of fair value hierarchy [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at book value | 825,924 | 595,380 |
Financial assets at fair value | R$ 825924 | R$ 595380 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of investements evaluated at fair value (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Financial assets at fair value | R$ 1397699 | R$ 1287781 |
Long term investments [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value | 1,397,699 | 1,287,781 |
Long term investments [member] | Bonds In TAP [Member] | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value | 1,236,828 | R$ 1287781 |
Long term investments [member] | Other Long Term Invesement [Member] | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value | R$ 160871 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Level 3 Significant Unobservable Inputs Used in Fair Value Measurements (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Sensitivity of the input to fair value | 10bps (2018 – 10bps) increase (decrease) in the growth rate would result in an increase (decrease) in the fair value of R$24 (December 31, 2018 - R$3) | |
Discounted cash flow [member] | Long term growth rate [member] | Level 3 of fair value hierarchy [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Valuation technique | Discounted cash flow method | |
Significant unobservable inputs | Long-term growth rate for cash flows for subsequent years | |
Interest rate, significant unobservable inputs, assets | 0.025 | 0.019 |
Discounted cash flow [member] | Unlisted Equity Investments At Cost [member] | Level 3 of fair value hierarchy [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable inputs | Cost of equity | |
Interest rate, significant unobservable inputs, assets | 0.136 | 0.122 |
Sensitivity of the input to fair value | 50bps increase in cost of equity would result in a reduction in the fair value of R$18 (December 31, 2018 - R$23). 50bps reduction in cost of equity would result in an increase in the fair value of R$20 (December 31, 2018 - R$25). |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Level 3 Significant Unobservable Inputs Used in Fair Value Measurements (Parenthetical) (Detail) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Long term growth rate [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Increase (decrease) in the growth rate | 10.00% | 10.00% |
Unlisted Equity Investments At Cost [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Increase (decrease) in cost of equity | 50.00% | 50.00% |
Increase (decrease) in cost of equity | 50.00% | 50.00% |
Level 3 of fair value hierarchy [member] | Long term growth rate [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Increase (decrease) in the fair value due to increase (decrease) in the growth rate | R$ 24 | R$ 3 |
Level 3 of fair value hierarchy [member] | Unlisted Equity Investments At Cost [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Decrease in the fair value due to increase in cost of equity | 18 | 23 |
Increase in the fair value due to decrease in cost of equity | R$ 20 | R$ 25 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Level 3 Financial Assets Reconciliation (Detail) - Long term investments [member] - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | ||
Balance at the beginning of the period | R$ 1287781 | |
Balance at the end of the period | 1,397,699 | R$ 1287781 |
Level 3 of fair value hierarchy [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Balance at the beginning of the period | 1,287,781 | 835,957 |
Foreign currency exchange gain (loss) | 10,723 | 48,365 |
Interest accrual | 30,184 | 29,630 |
Net present value of debt component | 116,912 | 13,219 |
Fair value of call-option | (208,772) | 360,610 |
Balance at the end of the period | R$ 1236828 | R$ 1287781 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Schedule of Changes in the fair value of other investment are details below (Details) - Other Long Term Invesement [Member] - Level 3 of fair value hierarchy [member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of fair value measurement of assets [line items] | |
Acquisition | R$ 96161 |
Fair value of other investments | 64,710 |
Balance at the end of the period | R$ 160871 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Schedule of Derivative Financial Instruments (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about hedging instruments [line items] | ||
Assets | R$ 825924 | R$ 595380 |
Liabilities | (310,190) | (440,994) |
Interest rate swap contract [member] | Cash flow hedge [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Liabilities | (7,129) | (9,422) |
Interest rate swap contract [member] | Fair value hedges [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Assets | 24,057 | 21,813 |
Liabilities | (1,732) | |
Interest rate swap contract [member] | Not designated as hedging instrument [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Assets | 203,636 | 93,606 |
Liabilities | (266,439) | (260,593) |
Foreign currency options [member] | Cash flow hedge [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Assets | 338,592 | 246,323 |
Foreign currency options [member] | Not designated as hedging instrument [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Liabilities | (35,487) | (45,949) |
Forward foreign currency contract [member] | Not designated as hedging instrument [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Assets | 203,148 | 233,638 |
Liabilities | (1,135) | (74) |
Heating oil forward contracts [member] | Not designated as hedging instrument [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Assets | R$ 56491 | |
Liabilities | R$ 123224 |
Derivative Financial Instrum_10
Derivative Financial Instruments - Schedule of Financial Liabilities by Maturity (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Maturity Analysis For Derivative Financial Instruments [line items] | ||
Assets from derivative transactions | R$ 825924 | R$ 595380 |
Liabilities from derivative transactions | (310,190) | R$ 440994 |
Total financial instruments | 515,734 | |
Not yet due [member] | ||
Disclosure Of Maturity Analysis For Derivative Financial Instruments [line items] | ||
Assets from derivative transactions | 3,354 | |
Liabilities from derivative transactions | (2,135) | |
Total financial instruments | 1,219 | |
Until 6 months [member] | ||
Disclosure Of Maturity Analysis For Derivative Financial Instruments [line items] | ||
Assets from derivative transactions | 89,580 | |
Liabilities from derivative transactions | (46,987) | |
Total financial instruments | 42,593 | |
7 to 12 months [member] | ||
Disclosure Of Maturity Analysis For Derivative Financial Instruments [line items] | ||
Assets from derivative transactions | 75,214 | |
Liabilities from derivative transactions | (32,074) | |
Total financial instruments | 43,140 | |
More than one year up to five years [member] | ||
Disclosure Of Maturity Analysis For Derivative Financial Instruments [line items] | ||
Assets from derivative transactions | 657,776 | |
Liabilities from derivative transactions | (228,994) | |
Total financial instruments | R$ 428782 |
Derivative Financial Instrum_11
Derivative Financial Instruments - Schedule of Positions Related to Cash Flow Hedge (Detail) R$ in Thousands, $ in Millions | Dec. 31, 2019BRL (R$) | Apr. 16, 2019USD ($) | Dec. 31, 2018BRL (R$) |
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities at book value | R$ 310190 | R$ 440994 | |
Cash flow hedge [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Nominal amount | $ | $ 79 | ||
Cash flow hedge [member] | Interest rate swap contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities at book value | 331,463 | 236,901 | |
Nominal amount | 1,655,083 | 1,372,405 | |
Cash flow hedge [member] | Loans and financing [member] | Interest rate swap contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities at book value | (7,129) | (9,422) | |
Nominal amount | 40,872 | 57,805 | |
Cash flow hedge [member] | Foreign currency options [member] | Interest rate swap contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities at book value | 338,592 | 246,323 | |
Nominal amount | R$ 1614211 | R$ 1314600 |
Derivative Financial Instrum_12
Derivative Financial Instruments - Schedule of Changes in Other Comprehensive Loss (Cash Flow Hedge Reserve) (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | |||
Balance at the beginning of the year | R$ 153969 | R$ 14688 | |
Balance at the end of the year | (159,261) | (153,969) | R$ 14688 |
Cash flow hedge reserve | |||
Disclosure of detailed information about financial instruments [line items] | |||
Balance at the beginning of the year | (153,969) | (14,688) | (33,785) |
Transactions settled during the period | 4,389 | 6,444 | 6,435 |
New transactions recognized in income statement | (7,353) | (215,765) | |
Fair value adjustment | (2,328) | 70,040 | 12,662 |
Balance at the end of the year | R$ 159261 | R$ 153969 | R$ 14688 |
Derivative Financial Instrum_13
Derivative Financial Instruments - Additional Information (Detail) R$ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | Dec. 31, 2019USD ($) | Apr. 16, 2019USD ($) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about financial instruments [line items] | ||||||
Assets from derivative transactions | R$ 825924 | R$ 595380 | ||||
Financial assets at fair value | 1,397,699 | 1,287,781 | ||||
Recognition of an unrealized gain (loss) | 325,452 | 298,094 | R$ 90171 | |||
Cash flow hedge [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount | $ | $ 79 | |||||
Fair value hedges [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount | 139,702 | 163,353 | ||||
Heating oil forward contracts [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount | 1,244,869 | 804,929 | ||||
Recognition of an unrealized gain (loss) | 56,491 | (123,224) | 4,469 | |||
Interest rate swap contract [member] | Fair value hedges [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Assets from derivative transactions | 24,057 | 21,813 | ||||
Interest rate swap contract [member] | Level 2 of fair value hierarchy [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Recognition of an unrealized gain (loss) | 62,803 | 166,987 | 380,946 | |||
Interest rate swap contract [member] | Level 2 of fair value hierarchy [member] | Fair value hedges [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Assets from derivative transactions | 24,057 | 20,081 | (4,723) | |||
Forward foreign currency contract [member] | Level 2 of fair value hierarchy [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount | $ | $ 426 | $ 375 | ||||
Financial assets at fair value | 202,013 | 233,564 | 219,930 | |||
Foreign currency options [member] | Cash flow hedge [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Assets from derivative transactions | 338,592 | 246,323 | ||||
Foreign currency options [member] | Level 2 of fair value hierarchy [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount | $ | 195 | 159 | ||||
Recognition of an unrealized gain (loss) | R$ 35487 | R$ 45949 | R$ 160464 | |||
Foreign currency options [member] | Level 2 of fair value hierarchy [member] | Senior notes hedging [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount | $ | 118 | 129 | ||||
Foreign currency options [member] | Level 2 of fair value hierarchy [member] | Dollar loan [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount | $ | 30 | $ 30 | ||||
Foreign currency options [member] | Level 2 of fair value hierarchy [member] | OPIC [Member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Nominal amount | $ | $ 47 |
Derivative Financial Instrum_14
Derivative Financial Instruments - Schedule of Fair Value of Financial Instruments (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | R$ 1397699 | R$ 1287781 |
Cash and cash equivalents [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 1,647,880 | 1,169,136 |
Short term investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 62,009 | 517,423 |
Long term investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 1,397,699 | 1,287,781 |
Interest rate swap contract [member] | Cash flow hedge [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at fair value | (7,129) | (9,422) |
Interest rate swap contract [member] | Fair value hedges [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 24,057 | 21,813 |
Financial liabilities at fair value | (1,732) | |
Interest rate swap contract [member] | Not designated as hedging instrument [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 203,636 | 93,606 |
Financial liabilities at fair value | (266,439) | (260,593) |
Forward foreign currency contract [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 203,148 | 233,638 |
Financial liabilities at fair value | (74) | |
Foreign currency options [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at fair value | (35,487) | (45,949) |
Foreign currency options [member] | Cash flow hedge [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 338,592 | 246,323 |
Heating oil forward contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at fair value | (123,224) | |
Fuel Term Contract [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 56,491 | |
Financial liabilities at fair value | (1,135) | |
Level 2 of fair value hierarchy [member] | Cash and cash equivalents [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 1,647,880 | 1,169,136 |
Level 2 of fair value hierarchy [member] | Short term investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 62,009 | 517,423 |
Level 2 of fair value hierarchy [member] | Interest rate swap contract [member] | Cash flow hedge [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at fair value | (7,129) | (9,422) |
Level 2 of fair value hierarchy [member] | Interest rate swap contract [member] | Fair value hedges [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 24,057 | 21,813 |
Financial liabilities at fair value | (1,732) | |
Level 2 of fair value hierarchy [member] | Interest rate swap contract [member] | Not designated as hedging instrument [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 203,636 | 93,606 |
Financial liabilities at fair value | (266,439) | (260,593) |
Level 2 of fair value hierarchy [member] | Forward foreign currency contract [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 203,148 | 233,638 |
Financial liabilities at fair value | (74) | |
Level 2 of fair value hierarchy [member] | Foreign currency options [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 338,592 | 246,323 |
Financial liabilities at fair value | (35,487) | (45,949) |
Level 2 of fair value hierarchy [member] | Heating oil forward contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at fair value | (123,224) | |
Level 2 of fair value hierarchy [member] | Fuel Term Contract [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 56,491 | |
Financial liabilities at fair value | (1,135) | |
Level 3 of fair value hierarchy [member] | Long term investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | R$ 1397699 | R$ 1287781 |
Operating Revenue - Schedule of
Operating Revenue - Schedule of Operating revenue (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue [abstract] | |||
Passenger revenue | R$ 11198585 | R$ 9029960 | R$ 6985044 |
Cargo and other revenue | 604,297 | 430,725 | 1,054,761 |
Gross revenue | 11,802,882 | 9,460,685 | 8,039,805 |
Taxes levied on | |||
Passenger revenue | (290,696) | (359,828) | (289,704) |
Cargo and other revenue | (69,869) | (43,793) | (45,270) |
Total taxes | (360,565) | (403,621) | (334,974) |
Total revenue | R$ 11442317 | R$ 9057064 | R$ 7704831 |
Financial Result - Schedule Of
Financial Result - Schedule Of Financial Result (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial income | |||
Interest on short-term investments | R$ 12462 | R$ 31947 | R$ 50604 |
Sublease receivable | 29,695 | 33,129 | 33,467 |
Other | 29,914 | 9,446 | 44,201 |
Total financial income | 72,071 | 74,522 | 128,272 |
Financial expenses | |||
Interest on loans | (195,688) | (164,294) | (235,184) |
Interest on lease | (732,723) | (606,076) | (484,300) |
Interest on finance lease | (73,284) | (75,313) | (72,481) |
Interest on factoring credit card and travel agencies receivables | (13,477) | (10,625) | (36,188) |
Interest on other operations | (129,954) | (79,822) | (110,375) |
Guarantee commission | (30,977) | (26,187) | (24,880) |
Loan costs amortization | (12,549) | (23,169) | (36,598) |
Amortization of financial expenses | (88,015) | (56,827) | (41,439) |
Other | (52,857) | (52,515) | (37,153) |
Total financial expenses | (1,329,524) | (1,094,828) | (1,078,598) |
Derivative financial instruments, net | 325,452 | 298,094 | (90,171) |
Foreign exchange result, net | (391,905) | (1,306,063) | 34,859 |
Net financial expenses | R$ 1323906 | R$ 2028275 | R$ 1005638 |
Financial Result - Schedule O_2
Financial Result - Schedule Of Financial Result (Parenthetical) (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial result [abstract] | |||
Interest and expenses on assets and liabilities | R$ 1082256 | R$ 866895 | R$ 776470 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) R$ in Thousands, $ in Millions | Dec. 31, 2019BRL (R$)Aircraft | Dec. 31, 2019USD ($)Aircraft | Dec. 31, 2018BRL (R$)Aircraft | Dec. 31, 2018USD ($)Aircraft |
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Purchase commitments for acquisition of aircraft | 94 | 94 | 94 | 94 |
Letters of credit issued | R$ 2134186 | $ 529 | R$ 1091744 | $ 282 |
Bank guarantees amount | R$ | R$ 50432 | R$ 47676 | ||
Leased Aircarft [Member] | ||||
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Purchase commitments for acquisition of aircraft | 53 | 53 | 75 | 75 |
Commitments - Schedule of Purch
Commitments - Schedule of Purchase Commitments for the Acquisition of Aircraft (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of finance lease and operating lease by lessee [line items] | ||
Contractual commitments for acquisition of property, plant and equipment | R$ 15472265 | R$ 14900341 |
Leased Aircarft [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Contractual commitments for acquisition of property, plant and equipment | 7,391,587 | 8,493,159 |
Up to one year [member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Contractual commitments for acquisition of property, plant and equipment | 2,815,674 | 243,857 |
Up to one year [member] | Leased Aircarft [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Contractual commitments for acquisition of property, plant and equipment | 195,981 | 218,775 |
More than one year up to five years [member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Contractual commitments for acquisition of property, plant and equipment | 10,031,346 | 10,695,827 |
More than one year up to five years [member] | Leased Aircarft [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Contractual commitments for acquisition of property, plant and equipment | 2,963,355 | 3,386,676 |
More than five years [member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Contractual commitments for acquisition of property, plant and equipment | 2,625,245 | 3,960,657 |
More than five years [member] | Leased Aircarft [Member] | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Contractual commitments for acquisition of property, plant and equipment | R$ 4232251 | R$ 4887708 |
Share-based Option Plan - Addit
Share-based Option Plan - Additional Information (Detail) - BRL (R$) R$ in Thousands | Aug. 07, 2018 | Mar. 14, 2017 | Mar. 10, 2017 | Jun. 30, 2014 | Dec. 11, 2009 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Share-based compensation expense with respect to share options | R$ 12742 | R$ 16677 | R$ 19862 | |||||
Share-based compensation expense | 6,152 | 6,254 | 10,027 | |||||
Share-based compensation liability | 11,647 | 1,596 | ||||||
First share option plan [member] | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Term of the plan | 10 years | |||||||
Vesting period (in years) | 4 years | |||||||
Second share option plan, prior to IPO [member] | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Term of the plan | 8 years | |||||||
Vesting period (in years) | 4 years | |||||||
Second share option plan, after IPO [member] | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Term of the plan | 10 years | |||||||
Vesting period (in years) | 4 years | |||||||
Third option plan, 1st program [member] | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Term of the plan | 5 years | 5 years | ||||||
Vesting period (in years) | 5 years | |||||||
Maximum period available for exercise of options after vesting | 15 days | |||||||
Phantom shares [member] | ||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||
Term of the plan | 4 years | |||||||
Vesting period (in years) | 8 years | |||||||
Share-based compensation expense | R$ 13373 | R$ 1184 | R$ 0 |
Share-based Option Plan - Summa
Share-based Option Plan - Summary of Measurement of Grant Date Fair Value of Share Options (Detail) | Aug. 05, 2019BRL (R$)OptionR$ / shares | Aug. 07, 2018BRL (R$)OptionR$ / shares | Jul. 06, 2017BRL (R$)OptionR$ / shares | Mar. 14, 2017BRL (R$)OptionR$ / shares | Mar. 10, 2017 | Jul. 01, 2016BRL (R$)OptionR$ / shares | Jul. 01, 2015BRL (R$)OptionR$ / shares | Jun. 30, 2014BRL (R$)OptionR$ / shares | Apr. 05, 2011BRL (R$)OptionR$ / shares | Mar. 24, 2011BRL (R$)OptionR$ / shares | Dec. 11, 2009BRL (R$)OptionR$ / shares |
First option plan,1st program [member] | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Total options granted | 5,032,800 | ||||||||||
Total options outstanding | 303,700 | ||||||||||
Option exercise price | R$ / shares | R$ 3.42 | ||||||||||
Option fair value as of grant date | R$ | R$ 1.93 | ||||||||||
Estimated volatility of the share price | 47.67% | ||||||||||
Expected dividend | 1.10% | ||||||||||
Risk-free rate of return | 8.75% | ||||||||||
Maximum life of the option | Undetermined | ||||||||||
Expected term considered for valuation | 7 years | ||||||||||
First option plan, 2nd program [member] | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Total options granted | 1,572,000 | ||||||||||
Total options outstanding | 284,000 | ||||||||||
Option exercise price | R$ / shares | R$ 6.44 | ||||||||||
Option fair value as of grant date | R$ | R$ 4.16 | ||||||||||
Estimated volatility of the share price | 54.77% | ||||||||||
Expected dividend | 1.10% | ||||||||||
Risk-free rate of return | 12.00% | ||||||||||
Maximum life of the option | Undetermined | ||||||||||
Expected term considered for valuation | 7 years | ||||||||||
First option plan, 3rd program [member] | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Total options granted | 656,000 | ||||||||||
Total options outstanding | 12,460 | ||||||||||
Option exercise price | R$ / shares | R$ 6.44 | ||||||||||
Option fair value as of grant date | R$ | R$ 4.16 | ||||||||||
Estimated volatility of the share price | 54.77% | ||||||||||
Expected dividend | 1.10% | ||||||||||
Risk-free rate of return | 12.00% | ||||||||||
Maximum life of the option | Undetermined | ||||||||||
Expected term considered for valuation | 7 years | ||||||||||
Second option plan, 1st program [member] | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Total options granted | 2,169,122 | ||||||||||
Total options outstanding | 861,197 | ||||||||||
Option exercise price | R$ / shares | R$ 19.15 | ||||||||||
Option fair value as of grant date | R$ | R$ 11010 | ||||||||||
Estimated volatility of the share price | 40.59% | ||||||||||
Expected dividend | 1.10% | ||||||||||
Risk-free rate of return | 12.46% | ||||||||||
Maximum life of the option | 8 years | ||||||||||
Expected term considered for valuation | 4 years 6 months | ||||||||||
Second option plan,2nd program [member] | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Total options granted | 627,810 | ||||||||||
Total options outstanding | 231,638 | ||||||||||
Option exercise price | R$ / shares | R$ 14.51 | ||||||||||
Option fair value as of grant date | R$ | R$ 10820 | ||||||||||
Estimated volatility of the share price | 40.59% | ||||||||||
Expected dividend | 1.10% | ||||||||||
Risk-free rate of return | 15.69% | ||||||||||
Maximum life of the option | 8 years | ||||||||||
Expected term considered for valuation | 4 years 6 months | ||||||||||
Second option plan, 3rd program [member] | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Total options granted | 820,250 | ||||||||||
Total options outstanding | 391,176 | ||||||||||
Option exercise price | R$ / shares | R$ 14.50 | ||||||||||
Option fair value as of grant date | R$ | R$ 10140 | ||||||||||
Estimated volatility of the share price | 43.07% | ||||||||||
Expected dividend | 1.10% | ||||||||||
Risk-free rate of return | 12.21% | ||||||||||
Average remaining maturity (in years) | 4 months 24 days | ||||||||||
Maximum life of the option | 8 years | ||||||||||
Expected term considered for valuation | 4 years 6 months | ||||||||||
Second stock option plan, 4th program [member] | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Total options granted | 680,467 | ||||||||||
Total options outstanding | 494,491 | ||||||||||
Option exercise price | R$ / shares | R$ 22.57 | ||||||||||
Option fair value as of grant date | R$ | R$ 12820 | ||||||||||
Estimated volatility of the share price | 43.35% | ||||||||||
Expected dividend | 1.10% | ||||||||||
Risk-free rate of return | 10.26% | ||||||||||
Average remaining maturity (in years) | 1 year 6 months | ||||||||||
Maximum life of the option | 10 years | ||||||||||
Expected term considered for valuation | 5 years 6 months | ||||||||||
Third option plan, 1st program [member] | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Total options granted | 9,343,510 | ||||||||||
Total options outstanding | 5,606,106 | ||||||||||
Option exercise price | R$ / shares | R$ 11.85 | ||||||||||
Option fair value as of grant date | R$ | R$ 4820 | ||||||||||
Estimated volatility of the share price | 50.64% | ||||||||||
Expected dividend | 1.10% | ||||||||||
Risk-free rate of return | 11.32% | ||||||||||
Average remaining maturity (in years) | 2 years 2 months 12 days | ||||||||||
Maximum life of the option | 5 years | 5 years | |||||||||
Expected term considered for valuation | 5 years | ||||||||||
Phantom shares, 1st program [member] | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Total options granted | 707,400 | ||||||||||
Total options outstanding | 560,908 | ||||||||||
Option exercise price | R$ / shares | R$ 20.43 | ||||||||||
Option fair value as of grant date | R$ | R$ 40410 | ||||||||||
Estimated volatility of the share price | 34.00% | ||||||||||
Expected dividend | 1.10% | ||||||||||
Risk-free rate of return | 6.40% | ||||||||||
Average remaining maturity (in years) | 2 years 7 months 6 days | ||||||||||
Maximum life of the option | 8 years | ||||||||||
Phantom shares, 2nd program [member] | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Total options granted | 405,000 | ||||||||||
Total options outstanding | 405,000 | ||||||||||
Option exercise price | R$ / shares | R$ 42.09 | ||||||||||
Option fair value as of grant date | R$ | R$ 25340 | ||||||||||
Estimated volatility of the share price | 38.80% | ||||||||||
Expected dividend | 1.10% | ||||||||||
Risk-free rate of return | 6.40% | ||||||||||
Average remaining maturity (in years) | 3 years 7 months 6 days | ||||||||||
Maximum life of the option | 8 years | ||||||||||
Expected term considered for valuation | 4 years 6 months | 6 years |
Share-based Option Plan - Sum_2
Share-based Option Plan - Summary of Changes in Stock Options (Detail) | 12 Months Ended | |
Dec. 31, 2019OptionR$ / shares | Dec. 31, 2018OptionR$ / shares | |
Employee stock option [member] | ||
Disclosure of number and weighted average exercise price of share options [line items] | ||
Number of options, Beginning balance | 11,190,829 | 16,250,687 |
Number of options, Cancelled | (69,085) | (182,388) |
Number of options, Paid | (2,936,976) | (4,877,470) |
Number of options, Ending balance | 8,184,768 | 11,190,829 |
Number of options exercisable as of: | 2,294,135 | 2,572,640 |
Weighted average exercise price, Beginning balance | R$ / shares | R$ 12.55 | R$ 11.69 |
Weighted average exercise price, Cancelled | R$ / shares | 20.70 | 18.48 |
Weighted average exercise price, Exercised | R$ / shares | 11.51 | 9.44 |
Weighted average exercise price, Ending balance | R$ / shares | 12.85 | 12.55 |
Weighted average exercise price, Number of options exercisable as of: | R$ / shares | R$ 13.81 | R$ 11.60 |
Virtual Stock Option [member] | ||
Disclosure of number and weighted average exercise price of share options [line items] | ||
Number of options, Beginning balance | 707,400 | |
Number of options, Granted | 405,000 | |
Number of options, Cancelled | (47,889) | |
Number of options, Paid | (98,603) | |
Number of options, Ending balance | 965,908 | 707,400 |
Share-based Option Plan - Sum_3
Share-based Option Plan - Summary of Fair Value of RSUs and Expense (Detail) | 12 Months Ended | ||
Dec. 31, 2019BRL (R$)sharesOptions | Dec. 31, 2018Options | Dec. 31, 2017Options | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total shares granted | Options | 170,000 | 291,609 | |
Total shares outstanding | Options | 589,394 | 729,593 | 809,946 |
RSU [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total shares granted | 1,895,813 | ||
Total shares outstanding | 589,394 | ||
Restricted stock units program one[ member] | RSU [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total shares granted | 487,670 | ||
Total shares outstanding | 7,934 | ||
Fair value as of grant date | R$ | R$ 21000 | ||
Restricted stock units program two [member] | RSU [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total shares granted | 294,286 | ||
Total shares outstanding | 8,094 | ||
Fair value as of grant date | R$ | R$ 21000 | ||
Restricted stock units program three [member] | RSU [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total shares granted | 367,184 | ||
Total shares outstanding | 75,527 | ||
Fair value as of grant date | R$ | R$ 21000 | ||
Restricted stock units program four [member] | RSU [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total shares granted | 285,064 | ||
Total shares outstanding | 122,740 | ||
Fair value as of grant date | R$ | R$ 24170 | ||
Restricted stock units program five[ member] | RSU [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total shares granted | 291,609 | ||
Total shares outstanding | 205,099 | ||
Fair value as of grant date | R$ | R$ 24430 | ||
Restricted stock units program six [ member] | RSU [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total shares granted | 170,000 | ||
Total shares outstanding | 170,000 | ||
Fair value as of grant date | R$ | R$ 51650 |
Share-based Option Plan - Sum_4
Share-based Option Plan - Summary of Changes in RSUs (Detail) - Options | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of other equity instruments [abstract] | ||
Number of RSU, Beginning balance | 729,593 | 809,946 |
Number of RSU, Granted | 170,000 | 291,609 |
Number of RSU, Cancelled | (49,748) | (72,303) |
Number of RSU, Exercised | (260,451) | (299,659) |
Number of RSU, Ending balance | 589,394 | 729,593 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent event [member] R$ in Millions | Mar. 24, 2020BRL (R$) | Feb. 21, 2020BRL (R$) |
Brazilian Development Bank [member] | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Support package in credit lines | R$ 10000 | |
AZUL [member] | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Number of flight operates per day | 70 | |
Number of cities per day | 25 | |
Number of consolidated planned capacity | 90.00% | |
Executive management team salary cut | 50.00% | |
Managers salary cut | 25.00% | |
Number of voluntary unpaid leave program | 10,500 | |
Airline Two Taxi Aereo Ltda [member] | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Contingent consideration | R$ 123 |