Azul (AZUL4) Q4 2025 earnings summary

Executive summary

• Achieved record financial and operational performance in 2025, with all-time high revenue, EBITDA, EBIT, and RASK in Q4 2025, following a rapid Chapter 11 restructuring completed in under nine months, which significantly improved balance sheet strength and liquidity.

• Net leverage ratio reduced to below 2.5x, with R$6.7 billion reduction in loans/financing and R$9.8 billion reduction in lease liabilities versus 2024.

• Liquidity bolstered by US$1.375 billion in Senior Notes (7x oversubscribed) and US$950 million in equity commitments, plus an additional US$100 million pending regulatory approval.

• Business units (Fidelidade, Cargo, Viagens, TecOps) delivered double-digit growth, driving diversification and incremental profitability.

• Maintained operational excellence and customer value proposition throughout restructuring, supported by a workforce of over 14,000.

Financial highlights

• Q4 2025 revenue reached R$5.8 billion, up 4.6% year-over-year; full-year operating revenue was R$21.9 billion, up 12.0% year-over-year.

• EBITDA for Q4 2025 was R$2.1 billion (36.9% margin), up 9.6% year-over-year; full-year EBITDA was R$6.7 billion (30.4% margin).

• EBIT for Q4 2025 totaled R$1.4 billion (24.5% margin), up 14.7% year-over-year.

• RASK reached R$46.55 cents (+3.5% YoY), an all-time record.

• Adjusted net loss for Q4 2025 was R$425.5 million, net margin -7.3% (improved from -71.2% YoY); full-year net result was a loss of R$224.7 million, a significant improvement from a loss of R$8.1 billion in 2024.

Outlook and guidance

• Entering 2026 with a strengthened balance sheet, disciplined capacity growth (domestic capacity growth at -1% for 2Q26), and a unique network with 80% of routes facing no direct competition.

• Targeting at least 8% unit revenue improvement by Q3 or Q4 2026 to offset higher fuel costs, leveraging fare increases and network strength.

• Positioned for sustainable cash flow generation, continued deleveraging, and resilience to macroeconomic headwinds.

• Disciplined approach to capacity and cost management, with further selective cuts possible if fuel prices remain elevated.

• Focused on maintaining a modern, fuel-efficient fleet and optimizing capital structure.