Financial instruments and risk management (Tables)

12 Months Ended

Dec. 31, 2021

Disclosure of detailed information about financial instruments [abstract]

Schedule of fair value hierarchy of financial instruments, assets

The accounting classifications of the Company's consolidated financial instruments and fair value hierarchy are shown below:

		Carrying amount		Fair value
		December 31,		December 31,
Description	Level	2021	2020	2021	2020
Assets
Cash and cash equivalents	2	3,073,799	3,064,815	3,073,799	3,064,815
Short-term investments	2	908,149	946,281	908,149	946,281
Accounts receivable	—	997,893	875,382	997,893	875,382
Aircraft sublease receivables	—	274,198	312,937	274,198	312,937
Security deposits and maintenance reserves	—	1,964,419	1,554,042	1,964,419	1,554,042
Derivative financial instruments	2	353,817	428,309	353,817	428,309
Liabilities
Loans and financing	—	(9,381,945)	(5,894,515)	(8,973,383)	(5,414,689)
Loans and financing - conversion right	2	(636,786)	(1,465,999)	(636,786)	(1,465,999)
Lease liabilities	—	(14,890,575)	(12,520,812)	(14,890,575)	(12,520,812)
Accounts payable	—	(2,335,165)	(2,561,727)	(2,335,165)	(2,561,727)
Accounts payable – supplier finance	—	(3,694)	(157,801)	(3,694)	(157,801)
Reimbursement to customers	—	(173,686)	(221,342)	(173,686)	(221,342)
Insurance premiums payable	—	(92,793)	(52,427)	(92,793)	(52,427)
Derivative financial instruments	2	(287,051)	(421,034)	(287,051)	(421,034)

Schedule of fair value hierarchy of financial instruments, liabilities

The accounting classifications of the Company's consolidated financial instruments and fair value hierarchy are shown below:

		Carrying amount		Fair value
		December 31,		December 31,
Description	Level	2021	2020	2021	2020
Assets
Cash and cash equivalents	2	3,073,799	3,064,815	3,073,799	3,064,815
Short-term investments	2	908,149	946,281	908,149	946,281
Accounts receivable	—	997,893	875,382	997,893	875,382
Aircraft sublease receivables	—	274,198	312,937	274,198	312,937
Security deposits and maintenance reserves	—	1,964,419	1,554,042	1,964,419	1,554,042
Derivative financial instruments	2	353,817	428,309	353,817	428,309
Liabilities
Loans and financing	—	(9,381,945)	(5,894,515)	(8,973,383)	(5,414,689)
Loans and financing - conversion right	2	(636,786)	(1,465,999)	(636,786)	(1,465,999)
Lease liabilities	—	(14,890,575)	(12,520,812)	(14,890,575)	(12,520,812)
Accounts payable	—	(2,335,165)	(2,561,727)	(2,335,165)	(2,561,727)
Accounts payable – supplier finance	—	(3,694)	(157,801)	(3,694)	(157,801)
Reimbursement to customers	—	(173,686)	(221,342)	(173,686)	(221,342)
Insurance premiums payable	—	(92,793)	(52,427)	(92,793)	(52,427)
Derivative financial instruments	2	(287,051)	(421,034)	(287,051)	(421,034)

Schedule of maturity of non-derivative financial liabilities

The maturity schedules of the Company’s consolidated financial liabilities as of December 31, 2021 are as follows:

	December 31, 2021
Description	Carrying amount	Contractual cash flows	2022	2023	2024	2025	After 2026
Accounts payable	2,335,165	2,335,165	1,771,663	150,477	191,160	86	221,779
Accounts payable – supplier finance	3,694	3,694	3,694	—	—	—	—
Loans and financing	10,018,731	10,143,516	1,039,198	1,298,922	2,443,293	1,978,628	3,383,475
Lease liabilities	14,890,575	28,424,354	3,802,070	4,056,001	4,015,746	3,397,128	13,153,409
Derivative obligations	287,051	287,051	77,509	68,534	141,008	—	—
Insurances premiums payable	92,793	92,793	92,793	—	—	—	—
Reimbursement to customers	173,686	173,686	173,686	—	—	—	—
	27,801,695	41,460,259	6,960,613	5,573,934	6,791,207	5,375,842	16,758,663

Disclosure of market risk [text block]

During the years ended December 31, 2021, 2020 and 2019, gains and losses were recognized in statements of operations as follows:

	December 31,
Description	2021	2020	2019
Gain (loss) on interest rate risk	48,571	30,949	142,220
Gain (loss) on aviation fuel price risk (“QAV”)	75,075	(1,371,941)	115,189
Gain (loss) on foreign exchange risk	(88,675)	(74,371)	68,043
	34,971	(1,415,363)	325,452

Schedule of foreign exchange risk

The exposure to the main exchange differences is as follows:

	Exposure to US$		Exposure to €
	December 31,		December 31,
Description	2021	2020	2021	2020
Assets
Cash and cash equivalents and short-term investments	244,239	262,309	911,071	854,462
Accounts receivable	100,640	232,950	—	—
Security deposits and maintenance reserves	1,918,517	1,540,231	—	—
Aircraft sublease receivables	274,198	312,937	—	—
Derivative rights	—	155,920	—	—
Other assets	154,198	60,576	—	—
Total assets	2,691,792	2,564,923	911,071	854,462
Liabilities
Accounts payable	(624,162)	(831,429)	—	—
Loans and financing	(8,506,445)	(5,741,253)	—	—
Lease liabilities	(14,814,400)	(12,463,426)	—	—
Derivative obligations	—	(81,274)	—	—
Provisions and other liabilities	(3,808,012)	(951,348)	—	—
Total liabilities	(27,753,019)	(20,068,730)	—	—
Net exposure	(25,061,227)	(17,503,807)	911,071	854,462
Net exposure in foreign currency	(4,490,857)	(3,368,254)	144,134	133,972

Disclosure of capital management

The Company seeks capital alternatives in order to satisfy its operational needs, aiming at a capital structure that it considers adequate for the financial costs and the maturity dates of funding and its guarantees. The Company continuously monitors its net indebtedness.

Schedule of maturity of derivative financial liabilities

The maturity schedules of the Company’s consolidated financial liabilities as of December 31, 2021 are as follows:

	December 31, 2021
Description	Carrying amount	Contractual cash flows	2022	2023	2024	2025	After 2026
Accounts payable	2,335,165	2,335,165	1,771,663	150,477	191,160	86	221,779
Accounts payable – supplier finance	3,694	3,694	3,694	—	—	—	—
Loans and financing	10,018,731	10,143,516	1,039,198	1,298,922	2,443,293	1,978,628	3,383,475
Lease liabilities	14,890,575	28,424,354	3,802,070	4,056,001	4,015,746	3,397,128	13,153,409
Derivative obligations	287,051	287,051	77,509	68,534	141,008	—	—
Insurances premiums payable	92,793	92,793	92,793	—	—	—	—
Reimbursement to customers	173,686	173,686	173,686	—	—	—	—
	27,801,695	41,460,259	6,960,613	5,573,934	6,791,207	5,375,842	16,758,663

Gain (loss) on foreign exchange risk

Disclosure of nature and extent of risks arising from financial instruments [line items]

Schedule of sensitivity analysis of financial instruments

The table below shows the sensitivity analysis and the effect on the result of the exchange rate fluctuation in the amount exposed as of December 31, 2021:

	Exposure to US$		Exposure to €
Description	Rate	December 31, 2021	Rate	December 31, 2021
Net exposure at 12/31/2021	5.5805	(25,061,227)	6.3210	911,071
Effect on profit or loss
Foreign currency devaluation by -50%	2.7903	12,530,613	3.1605	(455,536)
Foreign currency devaluation by -25%	4.1854	6,265,307	4.7408	(227,768)
Foreign currency appreciation by 50%	8.3708	(12,530,613)	9.4815	455,536
Foreign currency appreciation by 25%	6.9756	(6,265,307)	7.9013	227,768

Gain (loss) on aviation fuel price risk (“QAV”)

Disclosure of nature and extent of risks arising from financial instruments [line items]

Schedule of sensitivity analysis of financial instruments

The table below shows the sensitivity analysis in US dollars of the fluctuation of aviation fuel barrel prices:

	Exposure to HOA(a)
Description	Price(b)		December 31, 2021
HOA reference price at 12/31/2021	$	227	9,383
Effect on profit or loss
HOA devaluation by -50%	$	114	(266,776)
HOA devaluation by -25%	$	170	(128,745)
HOA appreciation by 50%	$	341	287,779
HOA appreciation by 25%	$	284	148,534

(a)	HOA – Heating Oil
(b)	Average price in US dollar, per gallon, projected for the next 12 months.

Gain (loss) on interest rate risk

Disclosure of nature and extent of risks arising from financial instruments [line items]

Schedule of sensitivity analysis of financial instruments

As of December 31, 2021, the Company held financial investments and debts linked to various types of rates. In the sensitivity analysis of non-derivative financial instruments, the impact on annual interest was only considered on positions with values exposed to such fluctuations, according to the scenarios shown below:

	Consolidated
	Exposure to CDI			Exposure to LIBOR rate
Description	Rate p.a.		December 31, 2021	Rate (p.a.) (a)		December 31, 2021
Net exposure at 12/31/2021	9.15	%	120,866	0.27	%	(1,540)
Effect on profit or loss
Interest rate devaluation by -50%	4.58	%	(60,433)	0.13	%	770
Interest rate devaluation by -25%	6.86	%	(30,217)	0.20	%	385
Interest rate appreciation by 50%	13.73	%	60,433	0.40	%	(770)
Interest rate appreciation by 25%	11.44	%	30,217	0.33	%	(385)

(a) Weighted rate.