Azul (AZUL4) investor relations material

Executive summary

• Achieved record second-quarter operating revenue of R$5.0 billion, up 0.7% year-over-year, driven by disciplined capacity management and premium demand focus, despite a 10.6% reduction in capacity and significant fuel price increases.

• Maintained industry-leading operational reliability, ranking as the most on-time airline in Latin America in July 2026, with a 26-point NPS increase since December 2025.

• Completed financial restructuring, reducing total debt by R$13.0 billion and lowering leverage ratio to 3.0x, with immediate liquidity of R$3.7 billion.

• Enhanced customer experience and captured premium demand through strategic focus on high-yield and corporate customers.

• Interim financial statements for the three and six months ended June 30, 2026, were reviewed and approved by management and the statutory audit committee, with a favorable independent auditor's report confirming compliance with Brazilian and international standards.

Financial highlights

• EBITDA for 2Q26 was R$510.1 million, with a 10.2% margin, despite seasonally weak demand and high fuel costs.

• RASK increased 12.7% year-over-year to R$43.41 cents, a record for Q2.

• Premium revenue rose 12.4% year-over-year, while average fares increased 9.5%.

• Immediate liquidity stood at R$3.7 billion (16.6% of LTM revenue); gross debt at quarter-end was R$21.4 billion, down 37.8% year-over-year.

• Net profit for the six months reached R$4.62 billion, up from R$3.12 billion in 2025, driven by non-recurring deferred tax asset recognition.

Outlook and guidance

• No full-year 2026 guidance provided due to ongoing fuel price volatility, but management expects higher EBITDA in the second half as capacity and international operations recover.

• Targeting net debt/EBITDA below 1.5x and a 150% increase in market cap by 2029.

• Capacity expected to return to positive low-to-mid single-digit growth in 2027 as fleet restoration continues.

• Management concluded there are no material uncertainties regarding going concern, supported by the business plan, financial reorganization, and liquidity projections.