Azul (AZUL4) investor relations material

Executive summary

• Achieved record first-quarter operating revenue of R$5.5 billion, up 1.4% year-over-year, driven by strong demand, robust ancillary revenues, and business unit contributions.

• EBITDA reached R$1.7 billion, up 22.6% year-over-year, with a 31.1% margin; EBIT rose 83.1% to R$1.0 billion and margin improved to 19.1%.

• Strategic capacity management enabled higher profitability despite a 2.7% reduction in capacity, mainly from an 8.9% drop in international operations.

• Strengthened brand through partnership with the Brazilian Football Confederation and improved Net Promoter Score by over 12 points year-over-year.

• Leadership transition with new CFO Antonio Garcia, focusing on deleveraging and long-term value creation.

Financial highlights

• RASK increased 4.3% year-over-year to R$43.94 cents; CASK decreased 5.7% to R$35.55 cents, driven by cost initiatives and lower fuel prices.

• Passenger revenue grew 0.6% to R$5,048.8 million; cargo and other revenue increased 12.1% to R$422.6 million.

• Operating expenses fell 8.2% to R$4,426.4 million.

• Recurring free cash flow reached R$217 million in 1Q26.

• Adjusted net result was R$1,421.6 million, with an adjusted net margin of 26.0%.

Outlook and guidance

• Capacity growth for the year revised downward; proactive capacity reductions expected to result in negative growth.

• Targeting 12%-15% year-over-year RASK increase to offset fuel cost pressures, with strong visibility for 2Q.

• Management expects continued margin expansion and deleveraging, supported by disciplined capacity management and a modern, efficient fleet.

• Positioned to navigate higher fuel prices due to fleet efficiency and diversified revenue streams.

• Focus remains on deleveraging and generating cash flow amid macroeconomic headwinds.