Recent developments include a management transition announced in April 2026, with the resignation of the CFO and Investor Relations Officer and appointment of a successor with extensive industry experience.

• Azul announced the resignation of CFO and Investor Relations Officer Alexandre Wagner Malfitani effective April 20, 2026, a founder instrumental in shaping the company’s financial and strategic foundation [S2].
• Antonio Carlos Garcia was appointed as the new CFO and Investor Relations Officer effective April 20, 2026, bringing experience from Embraer, ThyssenKrupp, ZF Group, and Siemens, with strong analytical and executive expertise [S2].
• The transition period between the outgoing and incoming CFOs began on April 20, 2026 [S2].

Azul's recent emergence from Chapter 11 reorganization has simplified its capital structure and improved liquidity, enabling a focus on growth and margin expansion. The company demonstrated revenue growth and a return to profitability in 2025, supported by increased capacity and operational efficiencies from a modernized fleet. Azul's strong domestic network and strategic international partnerships provide opportunities to capture demand in underserved markets. The diversified revenue base, including loyalty and cargo businesses, offers additional growth avenues. Management changes bring experienced leadership with industry insight, potentially strengthening execution. The company's ability to manage costs and leverage its brand and customer service culture may support sustainable operational improvements.

Azul faces risks from macroeconomic challenges including inflation, currency fluctuations, and supply chain disruptions, which can increase operating costs and impact demand. The airline industry remains sensitive to external shocks such as pandemics, natural disasters, and regulatory changes. The company's liquidity ratios indicate tight short-term liquidity, with current liabilities significantly exceeding current assets as of December 31, 2025. Legal claims and operational disruptions have increased expenses. The recent restructuring involved significant one-time costs and accounting adjustments, and the company’s financial performance may be affected by ongoing integration and execution risks. Competition in the Brazilian and international markets may pressure yields and load factors.

Azul's competitive advantages include its extensive domestic network in Brazil, serving over 137 destinations with a large fleet and frequent flights, which creates strong connectivity and customer loyalty. The company's focus on fleet modernization with fuel-efficient aircraft reduces operating costs and enhances profitability. Strategic partnerships, such as the cooperation agreement with United Airlines, provide access to international markets and expanded customer bases. Azul's diversified revenue streams from passenger services, cargo, loyalty programs, and travel packages contribute to business resilience. The company's strong brand recognition and customer service culture further support its market position. However, the airline industry is capital intensive and sensitive to macroeconomic and operational risks, which require ongoing management.

• Macroeconomic and Operational Risks: Inflation, currency depreciation, and supply chain issues have increased costs and operational disruptions, impacting profitability and liquidity.
• Liquidity Constraints: As of December 31, 2025, the current ratio was 0.21 and cash ratio 0.03, indicating short-term liabilities significantly exceed current assets, posing liquidity management challenges.
• Legal and Litigation Risks: Increased legal claims related to irregular operations have raised expenses and could continue to affect financial results.
• Industry Sensitivity: The airline industry is vulnerable to external shocks such as pandemics, natural disasters, and regulatory changes, which can materially affect demand and operations.
• Execution Risks Post-Reorganization: The company faces risks related to implementing its reorganization plan, including fleet restructuring, capital structure simplification, and integration of new governance and financing arrangements.

• Azul S.A. is the largest airline in Brazil by number of cities served and departures, operating approximately 800 daily flights to over 137 destinations with a fleet of about 180 aircraft and more than 14,000 crewmembers as of early 2026.
• The company operates a network of 250 nonstop routes, including domestic and select international destinations in the United States and Europe.
• Azul’s business model includes passenger air transport, cargo services, a loyalty program (Azul Fidelidade), and travel package businesses.
• The company has a history of fleet transformation, replacing smaller aircraft with larger, fuel-efficient next-generation aircraft to lower seat costs and improve fuel burn per available seat kilometer (ASK).
• Azul emerged from a Chapter 11 voluntary reorganization in late 2025, driven by economic distress from the COVID-19 pandemic, a catastrophic flood in 2024 affecting a strategic airport, customer litigation, macroeconomic challenges including inflation, and OEM supply disruptions.
• The reorganization included debt restructuring, fleet restructuring, new financing facilities, equity issuance, and governance changes, with material one-time accounting impacts reflected in 2026 financial statements.
• For the fiscal year ended December 31, 2025, Azul reported total revenue of approximately R$21.64 billion, a 10.8% increase from 2024, driven by a 10.3% increase in passenger revenue and 17.1% increase in other revenues, including cargo.
• Operating expenses increased 7.3% to R$17.32 billion in 2025, influenced by inflation, increased international capacity, legal claims, and currency depreciation effects, partially offset by productivity gains and fuel price reductions.
• Operating profit for 2025 was R$4.32 billion, a 27.5% increase from 2024, supported by revenue growth, capacity expansion, and improved fuel efficiency.
• Net income for 2025 was a profit of R$124.9 million, a significant improvement from a loss of R$9.15 billion in 2024, reflecting the effects of restructuring and operational improvements.
• Liquidity ratios as of December 31, 2025, show a current ratio of 0.21 and a cash ratio of 0.03, with cash and cash equivalents of approximately R$991.6 million and current liabilities of R$29.47 billion.
• Azul’s financial results include significant foreign currency exchange gains due to depreciation of the Brazilian real against the U.S. dollar, affecting monetary assets and liabilities remeasurement.
• The company’s fleet as of December 31, 2025, totaled 227 aircraft, including owned and leased, with a focus on next-generation, fuel-efficient planes.
• Azul maintains strategic partnerships, including a commercial cooperation and code-share agreement with United Airlines, though a joint venture has not yet been established.
• The company has registered trademarks and domain names related to its brand and operates software products under licenses from suppliers such as Oracle, Trax, Sabre, and Navitaire.
• In April 2026, Azul announced a management transition with the resignation of its CFO and Investor Relations Officer, Alex Malfitani, effective April 20, 2026, and the appointment of Antonio Carlos Garcia as his successor, bringing experience from Embraer and other global companies.
• Azul’s business environment includes challenges from macroeconomic factors, inflation, currency fluctuations, and supply chain issues, which have impacted costs and operations.
• The company’s operating metrics for 2025 include a load factor of 83.2%, available seat kilometers (ASKs) of approximately 50.9 billion, and a slight increase in passenger revenue per ASK.
• Azul’s liquidity management includes cash provided by operations, credit lines, and access to equity and debt capital markets, with a total cash position of about R$1.02 billion as of December 31, 2025.
• The company’s financial statements reflect significant one-time effects from the Chapter 11 reorganization, including gains related to renegotiations, breakage, and restructuring costs.
• Azul’s operating expenses include aircraft fuel, salaries and benefits, airport taxes and fees, auxiliary services, maintenance, advertising, depreciation, insurance, and legal claims.
• The company’s strategy emphasizes profitable route networks, affordable air service, and leveraging connectivity within Brazil and to international destinations.
• Azul’s loyalty program, cargo, and travel package businesses contribute additional revenue streams beyond passenger transport.
• The company’s fleet transformation and lease renegotiations have contributed to improved fuel efficiency and operating margins.
• Azul’s financial income and expenses are influenced by interest rates, foreign currency exchange, and derivative financial instruments used for hedging.
• The company’s management emphasizes customer service culture, employee engagement, and operational productivity.
• Azul’s financial disclosures are based on IFRS accounting standards and include detailed notes on commitments, leases, and accounting judgments related to the reorganization.