Azul (AZUL4) Q4 2025 earnings summary

Executive summary

• Achieved all-time record revenue, EBITDA, EBIT, and RASK in Q4 2025, reflecting strong operational and financial performance after a rapid Chapter 11 restructuring completed in under nine months, which significantly strengthened the balance sheet and liquidity.

• Strategic focus on disciplined growth, revenue maximization, and double-digit expansion in ancillary business units, which now contribute 21% of top-line revenue, up from 15% in 2019.

Financial highlights

• Q4 2025 operating revenue reached a record R$5.8 billion, up 4.6% year-over-year, with EBITDA at R$2.1 billion (36.9% margin) and EBIT at R$1.4 billion (24.5% margin), both up double digits year-over-year.

• RASK increased 3.5% year-over-year to R$46.55 cents, an all-time high.

• Productivity rose 5.7% year-over-year, while CASK remained nearly flat despite inflation and higher fuel prices.

• Adjusted net loss for Q4 2025 was R$425.5 million, net margin -7.3%, a significant improvement from -71.2% year-over-year.

Outlook and guidance

• Disciplined capacity growth planned, with domestic capacity growth at -1% for Q2 2026 and overall 2026 capacity growth at 1%, focusing on profitability and resilience to macroeconomic headwinds.

• Net leverage below 2.5x post-restructuring, with continued deleveraging and sustainable cash flow generation expected.

• Expecting at least 8% unit revenue improvement by Q3 or Q4 2026 to offset fuel cost increases, supported by conservative capacity and fare increases.