Azul (AZUL4) Q2 2025 earnings summary

Executive summary

• Achieved record second-quarter operating revenue of R$4.9 billion, up 18.4% year-over-year, driven by strong demand, operational improvements, and business unit performance.

• Maintained high on-time performance, ranking second globally in July, and improved Net Promoter Score to historical levels, with a 33-point NPS recovery.

• Entered into Restructuring Support Agreements and initiated Chapter 11 proceedings to transform capital structure, eliminate over US$2.0 billion in debt, and secure US$1.6 billion in DIP financing.

• Nearly 8 million passengers transported in the quarter, with international capacity up 36.8% and domestic capacity up 12.9% year-over-year.

• Interim financial statements for the three and six months ended June 30, 2025, were reviewed and approved by management and the audit committee, with an unqualified review opinion from the independent auditor.

Financial highlights

• Consolidated revenue for the six months ended June 30, 2025, was R$10.34 billion, up from R$8.85 billion year-over-year.

• 2Q25 EBITDA reached R$1,142.7 million with a 23.1% margin; EBIT was R$380 million with a 7.7% margin.

• Net profit for the six months was R$3.12 billion, compared to a net loss of R$4.86 billion in the same period last year.

• Ancillary revenues grew 21% year-over-year, and per passenger ancillary revenue rose 12% year-over-year.

• Immediate liquidity stood at R$3.3 billion, 30.7% higher than 2Q24, representing 15.7% of LTM revenues.

Outlook and guidance

• Chapter 11 restructuring process underway, with significant milestones achieved and targeted emergence by February 2026.

• Management expects to emerge from restructuring stronger, with further deleveraging, positive cash generation, and improved liquidity.

• Continued focus on operational efficiency, network simplification, and profitable growth in both domestic and international markets.

• Final court approvals for DIP financing and key lease agreements were received in July and August 2025, supporting ongoing operations and future capital raises.