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Azul Airlines

Azul S.A., the largest airline in Brazil by number of domestic flights and destinations, flies more than 900 daily flights to over 150 destinations. With a passenger fleet of more than 160 jets and over 12,000 crewmembers, Azul has built a robust network of more than 240 nonstop routes. This broad reach enabled Azul Cargo Express, the airline’s logistics arm, to leverage a creative business model in express parcels and cargo shipments. Azul Cargo Express has over 300 “stores” in Brazil and abroad, offering door-to-door service to over 4,200 cities in Brazil, the USA, and Portugal

The Challenge

The Challenge

How did Azul become a key player in Brazil’s logistics industry?

Azul Cargo Express flies critical parcels, B2C e-commerce delivery (at economical rates), and palletized cargo across Brazil’s vast territory and worldwide.

In January 2020, Azul partnered with SmartKargo to implement a state-of-the art e-commerce solution at Azul Cargo Express. This breakthrough became even more revolutionary during the COVID-19 pandemic, enabling the fast shipment of millions of small packages, from internet shopping cart to doorstep. Azul dramatically increased freight volumes and yields across their entire domestic and international network, propelling them to the forefront of Brazilian shipping.

The Solution

The Solution

SmartKargo’s game-changing solution for Azul

Azul's innovative management team was actively exploring high-growth opportunities for its cargo business when they discovered SmartKargo's end-to-end shipping solution. Working together, the teams pioneered a game-changing solution. Several small players were in the delivery market at the time, but Brazil's vast geography and challenging logistics made it difficult to deliver e-commerce packages efficiently. With its extensive domestic network and underutilized capacity, Azul Airlines was a perfect fit for carrying small packages. Although Azul operated international cargo, the company set aggressive domestic sales targets, tapping into domestic e-commerce to build revenues.

By partnering with SmartKargo, Azul deployed its e-commerce product in less than a year, establishing a strong foothold in the e-commerce market. The key was creation of a web of independent franchisees responsible for pickup and delivery, and operation of retail stores for C2C shipments. The SmartKargo solution includes a suite of features designed to streamline and enhance their operations:

  • Door-to-door logistics operations are fully integrated with shipper and consignee management.
  • Real-time API-based e-commerce integration with major e-commerce players, including real-time pricing and bid management.
  • Tight integration with passenger systems to understand available capacity for small packages.
  • E-commerce cargo revenue accounting, billing, and invoicing with back-office integration to corporate systems such as Oracle Financials.
  • Smart warehouse management capabilities for franchises engaged in store operations.
  • Comprehensive real-time tracking and audit trails for shippers and end users.
  • Full support for road logistics and warehousing.
  • Full-featured mobility, including apps for shippers/forwarders, first/last-mile drivers, and operations/warehouse management.
  • Real-time business intelligence with smart reporting capabilities.
Results

Results

Using the SmartKargo platform, the Azul Cargo Express network has expanded to over 300 stores in Brazil and abroad, providing door-to-door service to over 4,200 Brazilian cities and communities, 2,000 of which can be reached in 48 hours or less. Azul flies over 1.5 million e-commerce and cargo shipments monthly, and growing.

Azul’s logistics revenues exceeded its targets in 2021, reaching BRL 1.1 billion (about USD 190 million at Q4-2024 rates), surpassing Azul's goal of doubling its 2019 revenue of BRL 480.7 million.Azul’s logistics revenues exceeded its targets in 2021, reaching BRL 1.1 billion (about USD 190 million at Q4-2024 rates), surpassing Azul's goal of doubling its 2019 revenue of BRL 480.7 million.

Partnering with SmartKargo, Azul has fundamentally changed the Brazilian logistics landscape, setting them up for long-term success. In less than three years, Azul has transformed from a marginal cargo player to the dominant domestic market leader. Azul continues to innovate, utilizing the SmartKargo platform and expertise to extend and enhance its e-commerce offerings. This strategic transformation has positioned Azul Airlines as the "FedEx of Brazil," driving growth and delivering unparalleled customer service.

20.2%

20.2%

Expansion in Volume

7-8%

7-8%

Market Expansion

About Azul Airlines

Azul Cargo Express, the logistics unit of Azul Linhas Aéreas, has its business model in express parcels and cargo shipments, taking advantage of the capacity of Azul's airline network. Today, the Azul Cargo Express network has over 300 stores in Brazil and abroad, offering "door to door" service to over 4,200 Brazilian cities, besides the entire territory of the USA and Portugal. The services offered include critical parcels, B2C distribution for e-commerce, parcels at economical rates, and palletized cargo in the global market. For more information, visit www.azulcargoexpress.com.br/.