Azul (AZUL4) investor relations material

Executive summary

• Achieved record second-quarter operating revenue of R$5.0 billion, up 0.7% year-over-year, despite a 10.6% capacity reduction and a 61.8% increase in fuel prices.

• Maintained industry-leading operational reliability, with on-time performance reaching 87.7% in July and NPS up 26 points since December 2025, ranking as the most on-time airline in Latin America.

• Focused on disciplined capacity management, premium customer targeting, and diversified business units to drive profitability and resilience.

• Successfully executed restructuring, reducing total debt by R$13.0 billion year-over-year and improving liquidity to R$3.7 billion.

• 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

• Operating revenue for 2Q26 was R$5.0 billion, a record for the quarter, with consolidated six-month revenue at R$10.45 billion, nearly flat year-over-year.

• EBITDA for 2Q26 reached R$510.1 million (10.2% margin), despite seasonally weak demand and higher fuel costs.

• Net profit for the six months was R$4.62 billion, up from R$3.12 billion in 2025, driven by deferred tax asset recognition; 2Q26 net result was a loss of R$1,041.2 million.

• RASK rose 12.7% year-over-year to R$43.41 cents, while average fares increased 9.5%.

• Immediate liquidity stood at R$3.7 billion, or 16.6% of LTM revenue.

Outlook and guidance

• No full-year 2026 guidance provided due to fuel price volatility and macro uncertainty.

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

• Expect higher EBITDA and margin improvement in the second half of 2026 as capacity and international operations recover.

• Capacity expected to return to positive low-to-mid single digits 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.