Azul (AZUL4) Investor Day 2026 summary

Strategic vision, business transformation, and direction

• Focus on sustainable free cash flow, disciplined de-leveraging, and long-term value creation for shareholders, with a transition from founder-led to a true corporation and improved governance.

• Monetizing a diversified ecosystem, expanding beyond core airline operations into logistics, loyalty, travel, and media units, driving stable recurrent revenues and cash flows.

• Enhanced governance with a single-class share structure, independent strategy committee, and strategic board partners, aligning management targets with value creation.

• Strategic partnerships with global airlines and major brands, including United, American, Amazon, Disney, and Shopee, reinforce network reach and brand value, pending antitrust approval for some airline partnerships.

• Enhanced customer experience and brand exposure through initiatives like Azul Concierge, premium products, and sponsorship of Brazil's national football teams.

Network, fleet, and operational strategy

• Maintains Brazil's largest and most diversified network, serving 137 cities, with 80 destinations exclusive to the network and three main hubs: Campinas, Belo Horizonte, and Recife.

• Fleet strategy emphasizes flexibility and efficiency, with E2s as the backbone, new Airbus A321 freighters, and a shift to lower-risk, shorter-term wide-body leases.

• Capacity growth moderated from 11% CAGR pre-pandemic to 3.4% over the next five years, with proactive deployment and a current CAGR of 11% for 2026-2029, focusing on profitable markets and resilience.

• Utilization can be flexibly increased without expanding fleet size as demand or fuel environment improves, with capacity reductions in 2024 to manage fuel price volatility and plans to return to growth in 2027.

• AI and digitalization initiatives are optimizing network, pricing, and customer experience, supporting operational excellence and NPS improvement.

Financial guidance, capital structure, and performance

• Targeting net debt to EBITDA below 1.5x by 2029 and market cap growth of 150% from current levels, with leverage at 2.4x and interest/rent payments down 40%.

• Balance sheet de-risked post-restructuring, with gross debt reduced by 42.3% and lowest leverage since IPO.

• Access to new government-backed credit lines in BRL expected to reduce cost of capital by 200 basis points and lower FX exposure.

• EBITDA has grown 3.8x since 2016, with 1Q26 EBITDA up 22.6% YoY despite a 2.7% capacity reduction; net revenue reached R$21.9 billion in the last twelve months.

• CASK is the lowest in the region, with a 5.7% YoY reduction in 1Q26 and ongoing structural cost initiatives, including AI-driven efficiencies.