Azul (AZUL4) Q3 2025 earnings summary

Executive summary

• Achieved all-time record revenue of R$5.7 billion in 3Q25, up 11.8% year-over-year, and record EBITDA and EBIT results, reflecting strong operational performance.

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

• The company is undergoing a major restructuring under Chapter 11 in the US, aiming to reduce debt, optimize fleet, and improve liquidity, with ongoing negotiations and support from key stakeholders.

• Maintained leadership in 91% of routes and is the only airline in 83% of its routes, leveraging a unique network in Brazil's large domestic market.

• Capacity grew 7.1% year-over-year, led by a 30.5% increase in international operations; passenger traffic rose 9.7%, with a record load factor of 84.6%.

Financial highlights

• 3Q25 revenue reached R$5.7 billion, an 11.8% increase compared to 3Q24.

• Consolidated revenue for the nine months ended September 30, 2025, was R$16.1 billion, up from R$14.0 billion year-over-year.

• Net profit for the nine-month period was R$1.76 billion, compared to a net loss of R$4.74 billion in the same period last year.

• Adjusted EBITDA was R$2.0 billion (34.6% margin), up 20.2% year-over-year.

• Adjusted EBIT was R$1.3 billion (22.1% margin), up 23.7% year-over-year.

Outlook and guidance

• Positioned to emerge from Chapter 11 with a streamlined capital structure, reduced debt, and lower lease payments; leverage at exit estimated at 2.5x.

• Backstop Commitment Agreement and equity investments from United Airlines and American Airlines secure US$850 million in new funds for post-restructuring capitalization.

• Ongoing negotiations with aircraft and engine manufacturers and lessors are expected to conclude successfully in the coming weeks.