AZUL SA (AZUL): Financial results for Q2 2026
AZUL SA (AZUL) furnished an SEC Form 6-K — earnings release. Yes ¨ No x Second Quarter Results 2026 Azul Reports 2Q26 Results, Maintaining Capacity Discipline and Positioning for Long-Term Value Creation São Paulo, August 13, 2026 – Azul S.A., “Azul” (B3:AZUL3, NYSE:AZUL), the largest airline in Brazil by number of cities served, announces
How this was made
The 30-second read
Why it matters
The earnings release provides the first detailed view of post‑restructuring performance.
Market read
First report of Azul's Q2 earnings, offering new data for traders and analysts.
What to watch
Government-backed financing of R$4.6B provides liquidity cushion for future growth.
Azul Reports 2Q26 Results, Maintaining Capacity Discipline and Positioning for Long-Term Value Creation
Record second-quarter revenue and RASK were achieved despite lower capacity, but substantially higher fuel costs and reduced fixed-cost absorption drove an operating loss, a sharp EBITDA decline, negative levered free cash flow, and lower quarter-end cash.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating revenueother | R$4,978.7 million | – | 0.7% |
| Passenger revenueother | R$4,560.5 million | – | -0.4% |
| Cargo revenue and otherother | R$418.1 million | – | 15.1% |
| Total operating expensesother | R$5,137.7 million | – | 12.6% |
| Aircraft fuel expenseother | R$(1,960.8) million | – | 41.2% |
| Salaries and benefitsother | R$(745.0) million | – | 21.3% |
| Depreciation and amortizationother | R$(669.2) million | – | -12.3% |
| Sales and marketingother | R$(270.6) million | – | 64.1% |
| Maintenance and repairsother | R$(222.7) million | – | 9.9% |
| Operating Resultother | R$(159.1) million | – | n.a. |
| Operating marginother | -3.2% | – | -10.9 p.p. |
| EBITDAnon-GAAP | R$510.1 million | – | -55.4% |
| EBITDA marginnon-GAAP | 10.2% | – | -12.9 p.p. |
| Net Resultother | R$(1,041.2) million | – | n.a. |
| Net marginother | -20.9% | – | -47.1 p.p. |
| Adjusted Net Resultnon-GAAP | R$(1,070.9) million | – | 125.1% |
| Adjusted net marginnon-GAAP | -21.5% | – | -11.9 p.p. |
| ASKother | 11,468 million | – | -10.6% |
| RPKother | 9,227 million | – | -11.8% |
| Load factorother | 80.5% | – | -1.1 p.p. |
| Passengersother | 7,252 thousand | – | -9.1% |
| Average fareother | R$628.9 | – | 9.5% |
| Yieldother | R$49.43 cents | – | 12.9% |
| RASKother | R$43.41 cents | – | 12.7% |
| PRASKother | R$39.77 cents | – | 11.4% |
| CASKother | R$44.80 cents | – | 26.0% |
| CASK ex-fuelother | R$27.70 cents | – | 12.0% |
| Fuel cost per literother | R$6.25 | – | 61.8% |
| Net cash generated (used) by operating activitiesother | R$(208.1) million | – | 205.1% |
| Net cash generated (used) in investing activitiesother | R$(130.6) million | – | n.a. |
| Net cash generated (used) in financing activitiesother | R$(416.2) million | – | n.a. |
| Recurring FCFnon-GAAP | R$(20.7) million | – | – |
| Recurring Levered FCFnon-GAAP | R$(78.2) million | – | – |
| Levered FCFnon-GAAP | R$(1,025.1) million | – | – |
| Capexother | R$212.9 million | – | 270.9% |
| Net capexother | R$130.6 million | – | 349.0% |
| Cash and cash equivalentsother | R$1,268.9 million | -39.2% | -13.0% |
| Immediate liquidityother | R$3,659.2 million | -21.4% | 11.2% |
| Gross debtother | R$21,415.9 million | 3.7% | -37.8% |
| Net debt / EBITDA (LTM) using available liquiditynon-GAAP | 3.0x | 0.5x | -2.3x |
| Net debt / EBITDA (LTM) using immediate liquiditynon-GAAP | 2.8x | 0.5x | -2.3x |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Passenger revenueHigher fares implemented to partially offset the significant increase in fuel prices resulted in stronger yields and unit revenues. | R$4,560.5 million | – | -0.4% |
| Cargo revenue and otherMainly due to better performance in the domestic logistics operation; logistic revenues increased 16.1% year-over-year, driven by stronger freighter operations and improvement in the charter business. | R$418.1 million | – | 15.1% |
What drove it
- Total operating revenue increased 0.7% despite a 10.6% reduction in ASK, supported by higher fares, Yield of R$49.43 cents, and RASK of R$43.41 cents.
- Premium revenue increased 12.4% versus 2Q25, while premium revenue strategy prioritized high-yield customers.
- Azul Logistics revenue and other increased 15.1%, and logistic revenues increased 16.1%, driven by stronger freighter operations, healthy margins, and improvement in the charter business.
- Domestic ASK declined 6.5% and international ASK declined 24.9% versus 2Q25 as part of restructuring-related capacity discipline.
- Fuel consumption per ASK improved 2.4%, which the company attributed to higher utilization of its next-generation fleet.
- Non-recurring items totaled R$359.4 million in 2Q26, including R$281.5 million impacting EBITDA.
Concerns
- Aircraft fuel expense increased 41.2%, while fuel cost per liter increased 61.8%.
- CASK increased 26.0% to R$44.80 cents as reduced capacity temporarily weakened fixed-cost absorption; CASK ex-fuel increased 12.0%.
- The company reported an Operating Result of R$(159.1) million, EBITDA declined 55.4%, and Net Result was R$(1,041.2) million.
- Cash and cash equivalents declined 39.2% versus 1Q26, and immediate liquidity declined 21.4% versus 1Q26.
- Recurring Levered FCF was R$(78.2) million and Levered FCF was R$(1,025.1) million.
- Gross debt increased 3.7% versus 1Q26, primarily due to the R$330 million government-backed credit draw and higher lease liabilities from fleet additions.
- Equity was R$(5,154.9) million as of June 30, 2026.
What to watch
- Whether modest capacity growth resumes from 4Q26 as stated by management and whether fleet availability stabilizes.
- Fuel-price developments and their effect on fare levels, Yield, RASK, CASK, and EBITDA margin.
- The transition away from ACMI operations, with the objective of operating exclusively with Azul aircraft and Azul crewmembers in 2027.
- Use and timing of up to R$4.6 billion in approved long-term government financing.
- Cash generation after restructuring-related payments, deferred capex, deferred rent payments, and aircraft redeliveries.
- Progress in reducing leverage following the reported 3.0x net debt to EBITDA ratio using available liquidity.
Balance sheet and cash flow
- Cash and cash equivalents were R$1,268.9 million as of June 30, 2026, compared with R$2,088.0 million as of March 31, 2026 and R$1,458.8 million as of June 30, 2025.
- Credit card receivables were R$1,456.7 million as of June 30, 2026, compared with R$683.1 million as of June 30, 2025.
- Immediate liquidity was R$3,659.2 million, or 16.6% of LTM revenue.
- Gross debt was R$21,415.9 million, compared with R$20,642.5 million in 1Q26 and R$34,410.4 million in 2Q25.
- Net cash generated (used) by operating activities was R$(208.1) million; net cash generated (used) in investing activities was R$(130.6) million; net cash generated (used) in financing activities was R$(416.2) million.
- Cash and cash equivalents at the end of the period were R$1,268.9 million.
- The Company raised R$330 million through Brazil's short-term government-backed credit program for the airline industry in June.
- The government approved up to R$4.6 billion in long-term financing in Brazilian reais at attractive rates.
Analysis
Azul produced R$4,978.7 million of total operating revenue in 2Q26, up 0.7% from R$4,942.3 million in 2Q25, despite a 10.6% decline in ASK. Passenger revenue declined 0.4%, while cargo revenue and other rose 15.1% to R$418.1 million. The revenue outcome reflected a deliberate focus on yield and premium demand: average fare increased 9.5%, Yield increased 12.9% to R$49.43 cents, RASK increased 12.7% to R$43.41 cents, and premium revenue increased 12.4%. The company also reduced domestic capacity by 6.5% and international capacity by 24.9%.
The revenue mix and pricing actions did not offset cost pressure. Total operating expenses increased 12.6% to R$5,137.7 million, led by a 41.2% increase in aircraft fuel expense to R$1,960.8 million. Fuel cost per liter increased 61.8%, while CASK increased 26.0% to R$44.80 cents. Management attributed the unit-cost increase to fuel, lower fixed-cost absorption from reduced capacity, retention initiatives, sales incentives, and inflation. The resulting Operating Result was R$(159.1) million, versus R$380.0 million in 2Q25, and EBITDA declined 55.4% to R$510.1 million. EBITDA margin fell to 10.2% from 23.1%.
The release identifies R$359.4 million of non-recurring operating items in 2Q26, including restructuring-related payroll, aircraft redelivery write-offs, OEM contract costs, rejected-aircraft costs, and advisor fees. Azul paid R$794.5 million in non-recurring restructuring-related items during the quarter. Managerial View recurring FCF was R$(20.7) million, recurring levered FCF was R$(78.2) million, and levered FCF was R$(1,025.1) million. IFRS cash flow from operating activities was R$(208.1) million, and cash and cash equivalents fell to R$1,268.9 million from R$2,088.0 million at March 31, 2026.
Balance-sheet restructuring materially lowered debt year over year. Gross debt was R$21,415.9 million, down from R$34,410.4 million in 2Q25, although it increased from R$20,642.5 million in 1Q26. Immediate liquidity was R$3,659.2 million, up from R$3,290.5 million in 2Q25 but below R$4,658.3 million in 1Q26. Net debt to LTM EBITDA using available liquidity was 3.0x, compared with 5.2x in 2Q25. The company also cited approval for up to R$4.6 billion in long-term Brazilian-real financing.
Management characterizes 2026 as a transition year and expects temporary unit-cost pressure to diminish as fleet availability stabilizes and modest capacity growth resumes from 4Q26. Execution priorities include eliminating ACMI operations with an objective to operate exclusively with Azul aircraft and Azul crewmembers in 2027, growing premium and recurring revenue streams, and using Artificial Intelligence solutions to improve productivity and identify efficiency opportunities. No formal financial outlook was provided in the release.
Management, verbatim
Despite these headwinds, demand remained healthy, supporting our record second-quarter revenue of R$5.0 billion and record RASK of R$43.41 cents, up 12.7% year-over-year.
John Rodgerson, CEO of Azul S.A.
2026 is a transition year for Azul.
John Rodgerson, CEO of Azul S.A.
Our focus remains clear: delivering the best travel experience in Brazil while creating sustainable long-term value for our customers, crewmembers, and shareholders.
John Rodgerson, CEO of Azul S.A.
Not in the filing
stated, not guessed- Formal forward revenue guidance
- Formal gross margin guidance
- Formal operating-expense guidance
- Formal tax-rate guidance
- Previous-release outlook for guidance comparison
- Gross margin
- GAAP or IFRS diluted EPS
- GAAP or IFRS basic EPS
- Share repurchases
- Dividend declaration or dividend payments
- A separate segment revenue breakout beyond Passenger revenue and Cargo revenue and other
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Azul is Brazil's largest airline by cities served, recently completed a financial restructuring.
Ticker impact
Q2 2026 earnings release shows record revenue of R$5.0B but EBITDA down 55% YoY.
Potential modest downside as investors digest lower EBITDA despite revenue growth.
Revenue beat is positive, but a 55% EBITDA drop and higher fuel costs suggest margin concerns.
Market effects
Brazilian airline sector may see pressure on margins as fuel costs rise.
Brazil equities could face slight pullback on airline earnings disappointment.
Limited; primarily affects Brazil and airline investors.
Counterpoint
Higher yields and capacity cuts could translate into longer-term margin recovery.
Key entities
- companyAzul S.A.
Brazilian airline reporting Q2 2026 results.
