Brazilian airline Azul revealed a net increase in cash during Q2 FY2021 while avoiding any new loans.

The Barueri based carrier announced the first-half net loss of R$9 billion ($1.65 billion) on August 13, 2020. Azul, like other airlines, faced the most financially difficult year due to the COVID-19 crisis, attributing its losses to reduced passenger revenue, which declined by 88.65% in comparison to the previous year’s Q2.

However, Azul managed to surprise everyone after increasing its liquidity to R$6.6 billion ($1.2 billion). While the airline’s cash flow indicated a net loss of $R3 billion ($556 million) for the period, the financial statement also showed a net cash increase of $R1 billion ($186 million). 

Cutting general costs and its staff (by 30%) were the primary reasons for the airline’s achievement. Unspecified short-term investments added to the positive outcome of the equation.

$R1.5 billion ($278 million) of Azul’s losses in Q2 came from exchange losses in foreign currency (R$1 billion, $186 million) and interest expenses.

The Brazilian carrier was undergoing expansion when the Coronacrisis hit back in March 2020. Restructuring quickly became the company’s primary concern as Azul hired advisers to renegotiate its debt and avoid Chapter 11 bankruptcy.