Azul AZUL incurred a loss of $1.63 per share on an adjusted basis in the first quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 50 cents. In the year-ago quarter, the company reported adjusted earnings of 49 cents per share. The first-quarter results were affected by coronavirus-induced drop in demand and depreciation of the Brazilian real. Fuel cost hedging losses also weighed on performance.However, total revenues of $633 million surpassed the Zacks Consensus Estimate of $613 million. Passenger revenues, accounting for bulk (94.7%) of the top line, increased 9% year over year despite low demand due to coronavirus. The upside can be attributed to strong passenger demand in January and February. Also, cargo revenues surged 41% in the reported quarter, mainly on e-commerce growth.Operational StatisticsConsolidated revenue passenger kilometers (RPK), measuring revenues generated per kilometer per passenger, increased 10.8% year over year. The metric rose 10.3% and 12.3% on the domestic and international front, respectively.Consolidated available seat kilometers (ASK), measuring an airline's passenger carrying capacity, increased 12% year over year. While domestic capacity expanded 11.5%, international capacity was up 13.6%.However, with capacity expansion outpacing traffic growth, consolidated load factor (percentage of seats filled with passengers) deteriorated 90 basis points to 81% on year-over-year basis.AZUL SA Price, Consensus and EPS Surprise AZUL SA price-consensus-eps-surprise-chart | AZUL SA QuoteWhile total revenues per ASK (RASK) dropped 1.5%, passenger revenues per ASK (PRASK) fell 2.7%. Meanwhile, cost per ASK (CASK) climbed 7% on an 18% average depreciation in the Brazilian real. Moreover, fuel price per liter increased 5.1% in the March quarter. Additionally, CASM excluding fuel rose 11%. Average fare for the company increased 5.5% from the year-ago quarter’s figure.Azul exited the first quarter with an operating fleet size of 140 jets. The average age of the fleet is 5.7 years. Contractual fleet size was 167.LiquidityAzul, carrying a Zacks Rank #4 (Sell), exited the first quarter with total liquidity (cash, cash equivalents, short-term and long-term investments plus receivables) of R$3.11 billion, down 21.9% year over year. Additionally, total debt (adjusted for currency hedges) surged 33.3% from the December 2019 figure to R$20 billion, primarily due to depreciation of Brazilian real.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Q2 OutlookFor the second quarter, Azul expects to reduce capacity by 75-85% year over year. Due to these capacity reductions and cost-cutting measures, total operating expenses are anticipated to decline approximately 55% year over year. In May and June, the company expects a net cash burn rate of R$3-R$4 million per day.Performance of Other Airline StocksGol Linhas Aereas Inteligentes GOL, carrying a Zacks Rank #3 (Hold), reported earnings of 20 cents per share (excluding $3.08 from non-recurring items) in first-quarter 2020. The bottom line increased year over year on cost-saving initiatives. Net operating revenues of $710.9 million missed the Zacks Consensus Estimate of $929.8 million and also declined year over year.Southwest Airlines LUV, carrying a Zacks Rank #3, incurred loss of 15 cents per share (excluding 3 cents from non-recurring items) in the first quarter of 2020, narrower than the Zacks Consensus Estimate of 48 cents. In the year-ago quarter, the company reported earnings of 70 cents per share. The results reflect the coronavirus-induced drop in passenger demand. Meanwhile, operating revenues of $4,234 million lagged the Zacks Consensus Estimate of $4,397 million and also declined 17.8% year over year.American Airlines AAL, carrying a Zacks Rank #3, incurred a loss (excluding $2.61 from non-recurring items) of $2.65 per share in first-quarter 2020, comparing unfavorably with the Zacks Consensus Estimate of a loss of $2.16. The company reported earnings per share of 52 cents in the year-ago quarter. Results in first-quarter 2020 were hurt by the coronavirus-led drop in air-travel demand. Operating revenues of $8,515 million declined 19.6% year over year and also fell short of the Zacks Consensus Estimate of $9,146.7 million.Zacks Top 10 Stocks for 2020In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.Access Zacks Top 10 Stocks for 2020 today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here.