AZUL SA (AZUL): Financial results for Q3 2026
AZUL SA (AZUL) furnished an SEC Form 6-K — earnings release. Third Quarter Results 2026 Azul Reports R$1.2 billion EBITDA in 3Q26, Driven by Record RASK and Strategic Capacity Allocation São Paulo, November 12, 2026 – Azul S.A., “Azul” (B3:AZUL3, NYSE:AZUL), the largest airline in Brazil by number of cities served, announces today its resu
How this was made
The 30-second read
Why it matters
The earnings miss may trigger short‑term price weakness, but the liquidity improvements and strategic capacity management could mitigate longer‑term concerns.
Market read
Primary earnings disclosure for a major Brazilian carrier; relevant for regional equity and airline sector traders.
What to watch
The $100 million equity injection from American Airlines and new government‑guaranteed financing line provide liquidity cushion.
Azul reports 3Q26 EBITDA of R$1,204.2 million (21.4% margin, adjusted) and record RASK of 47.23 R$ cents, with a reported net loss of R$(164.5) million
Unit revenue reached record levels (RASK 47.23 R$ cents, up 5.5% year over year) and liquidity and recurring free cash flow improved. Against that, adjusted EBITDA fell 39.4% year over year on a 22.1% rise in CASK, adjusted operating income fell 55.9%, and the company still reports a net loss of R$(164.5) million for the quarter. Non-recurring items of R$373.6 million are excluded from the adjusted operating figures.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating revenue (3Q26)GAAP | R$5.64B | 13.2% | -1.8% |
| Passenger revenue (3Q26)GAAP | R$5.20B | – | -1.7% |
| Cargo revenue and other (3Q26)GAAP | R$433.1M | 3.6% | -2.2% |
| Aircraft fuel expense (3Q26, adjusted)non-GAAP | −R$1.84B | – | 34.2% |
| Salaries and benefits (3Q26, adjusted)non-GAAP | −R$763M | – | 27.8% |
| Depreciation and amortization (3Q26)GAAP | −R$644.2M | – | -10.2% |
| Other rent and ACMI (3Q26, adjusted)non-GAAP | −R$184.4M | – | 7.1% |
| Airport fees (3Q26)GAAP | −R$296.8M | – | -6.0% |
| Traffic and customer servicing (3Q26, adjusted)non-GAAP | −R$230.4M | – | -4.7% |
| Sales and marketing (3Q26, adjusted)non-GAAP | −R$293.5M | – | 27.3% |
| Maintenance and repairs (3Q26, adjusted)non-GAAP | −R$252.3M | – | 50.6% |
| Other operating expenses (3Q26, adjusted)non-GAAP | −R$571.9M | – | -12.6% |
| Total operating expenses (3Q26, adjusted)non-GAAP | −R$5.08B | -1.2% | 13.6% |
| Total operating expenses as recorded (3Q26, IFRS)GAAP | −R$5.45B | – | – |
| Operating income (3Q26, adjusted)non-GAAP | R$560.1M | – | -55.9% |
| Operating income as recorded (3Q26, IFRS)GAAP | R$186.5M | – | – |
| Operating margin (3Q26, adjusted)non-GAAP | 9.9% | +13.1 p.p. | -12.2 p.p. |
| EBITDA (3Q26, adjusted)non-GAAP | R$1.20B | 136.1% | -39.4% |
| EBITDA as recorded (3Q26, IFRS)GAAP | R$830.6M | – | – |
| EBITDA margin (3Q26, adjusted)non-GAAP | 21.4% | +11.1 p.p. | -13.3 p.p. |
| EBITDA margin as recorded (3Q26, IFRS)GAAP | 14.7% | – | – |
| Financial result (3Q26)GAAP | −R$724.5M | – | -62.2% |
| Financial income (3Q26)GAAP | R$398.4M | – | 820.4% |
| Financial expenses (3Q26)GAAP | −R$1.08B | – | -62.5% |
| Foreign currency exchange, net (3Q26)GAAP | −R$33.7M | – | – |
| Result before income taxes (3Q26)GAAP | −R$164.5M | – | -74.5% |
| Net result (3Q26)GAAP | −R$164.5M | – | -74.5% |
| Net margin (3Q26)GAAP | -2.9% | – | +8.3 p.p. |
| Adjusted net result (3Q26)non-GAAP | −R$121.5M | – | -92.2% |
| ASK (3Q26)other | 11.93B | 4.0% | -6.9% |
| Domestic ASK (3Q26)other | 9.80B | 5.2% | 1.6% |
| International ASK (3Q26)other | 2.14B | – | -32.7% |
| RPK (3Q26)other | 9.81B | – | -9.6% |
| Load factor (3Q26)other | 82.2% | – | -2.4 p.p. |
| Domestic load factor (3Q26)other | 81.1% | – | -3.2 p.p. |
| International load factor (3Q26)other | 87.0% | – | 1.6 p.p. |
| Break-even load factor (3Q26)other | 74.0% | – | 8.2 p.p. |
| Yield (3Q26)other | 53.04 R$ cents | 7.3% | 8.7% |
| RASK (3Q26)other | 47.23 R$ cents | 8.8% | 5.5% |
| PRASK (3Q26)other | 43.60 R$ cents | 9.6% | 5.6% |
| CASK (3Q26, adjusted)non-GAAP | 42.54 R$ cents | -5.1% | 22.1% |
| CASK ex-fuel (3Q26, adjusted)non-GAAP | 27.12 R$ cents | -2.1% | 12.3% |
| Fuel cost per liter (3Q26)other | R$5.63 | -9.9% | 47.2% |
| Average fare (3Q26)other | R$676.6M | – | 3.1% |
| Passengers (3Q26)other | 7.69M | – | -4.7% |
| Block hours (3Q26)other | 134,952 | – | -6.2% |
| Departures (3Q26)other | 72,947 | – | -5.8% |
| Average exchange rate (3Q26)other | R$5.14 per US$ | 1.7% | -5.7% |
| End of period operating passenger aircraft (3Q26)other | 161 | – | -13.0% |
| Full-time-equivalent employees (3Q26)other | 14,913 | – | 0.2% |
| Cash and cash equivalents (end of 3Q26)GAAP | R$2.54B | 100.4% | 289.7% |
| Immediate liquidity (end of 3Q26)other | R$4.09B | 11.8% | 18.8% |
| Pro-forma immediate liquidity incl. US$100 million American Airlines investment (end of 3Q26)other | R$4.6B | – | – |
| Gross debt (end of 3Q26)other | R$22.64B | 5.7% | -39.3% |
| Net debt / EBITDA (LTM) with other receivables (end of 3Q26)other | 3.3x | 0.5x | -1.9x |
| Recurring free cash flow (3Q26)other | R$763.6M | – | – |
| Recurring levered free cash flow (3Q26)other | R$357.6M | – | – |
| Net cash generated by operating activities (3Q26)GAAP | R$1.45B | – | – |
| Net cash used in investing activities (3Q26)GAAP | −R$194.3M | – | 57.8% |
| Net cash generated by financing activities (3Q26)GAAP | R$26M | – | -94.2% |
| Capex (3Q26)other | R$277M | – | 136.3% |
| Net capex (3Q26)other | R$194.3M | – | 65.8% |
| Total assets (end of 3Q26)GAAP | R$32.21B | – | – |
| Total equity (end of 3Q26)GAAP | −R$5.65B | – | – |
| Total operating revenue (9M26)GAAP | R$16.09B | – | 0.1% |
| Passenger revenue (9M26)GAAP | R$14.81B | – | -0.5% |
| Cargo revenue and other (9M26)GAAP | R$1.27B | – | 7.6% |
| Aircraft fuel expense (9M26, adjusted)non-GAAP | −R$5.14B | – | 18.7% |
| Salaries and benefits (9M26, adjusted)non-GAAP | −R$2.22B | – | 15.4% |
| Depreciation and amortization (9M26)GAAP | −R$1.97B | – | -14.3% |
| Other rent and ACMI (9M26, adjusted)non-GAAP | −R$461.3M | – | 2.3% |
| Airport fees (9M26)GAAP | −R$887.1M | – | -6.7% |
| Traffic and customer servicing (9M26, adjusted)non-GAAP | −R$686.5M | – | -5.5% |
| Sales and marketing (9M26, adjusted)non-GAAP | −R$818.8M | – | 27.7% |
| Maintenance and repairs (9M26, adjusted)non-GAAP | −R$699M | – | 22.0% |
| Other operating expenses (9M26, adjusted)non-GAAP | −R$1.76B | – | -10.3% |
| Total operating expenses (9M26, adjusted)non-GAAP | −R$14.64B | – | 5.7% |
| Operating income (9M26, adjusted)non-GAAP | R$1.45B | – | -34.9% |
| Operating margin (9M26, adjusted)non-GAAP | 9.0% | – | -4.8 p.p. |
| EBITDA (9M26, adjusted)non-GAAP | R$3.41B | – | -24.4% |
| EBITDA margin (9M26, adjusted)non-GAAP | 21.2% | – | -6.9 p.p. |
| Financial result (9M26)GAAP | −R$1.23B | – | 55.7% |
| Net result (9M26)GAAP | R$215.9M | – | -84.9% |
| Adjusted net result (9M26)non-GAAP | −R$1.24B | – | -67.9% |
| ASK (9M26)other | 35.85B | – | -6.7% |
| Load factor (9M26)other | 82.2% | – | -0.4 p.p. |
| Break-even load factor (9M26)other | 74.8% | – | 3.7 p.p. |
| Yield (9M26)other | 50.27 R$ cents | – | 7.1% |
| RASK (9M26)other | 44.86 R$ cents | – | 7.3% |
| PRASK (9M26)other | 41.31 R$ cents | – | 6.7% |
| CASK (9M26, adjusted)non-GAAP | 40.83 R$ cents | – | 13.3% |
| CASK ex-fuel (9M26, adjusted)non-GAAP | 26.49 R$ cents | – | 7.0% |
| Fuel cost per liter (9M26)other | R$5.23 | – | 30.0% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Passenger revenueThe company attributes the quarter's revenue to fare increases implemented to partially offset higher fuel prices, supporting yields and unit revenues. Passenger revenue per ASK (PRASK) was 43.60 R$ cents, a record. Capacity (ASK) was 6.9% lower year over year. | R$5,202.6 million (3Q26) | – | -1.7% |
| Cargo revenue and otherThe company says the year-over-year decline was mainly due to lower international operations affecting its international logistics performance, partially offset by domestic logistics, which increased 18.6% year over year. Versus 2Q26, the company attributes the increase to stronger freighter operations, healthy margins and an improved charter business. | R$433.1 million (3Q26) | 3.6% | -2.2% |
Capital returns
- The release does not report any share repurchases or dividends in 3Q26.
- American Airlines' US$100 million equity investment in Azul was approved and funded in October 2026, after the quarter end. The release describes it as a source of liquidity.
- The 9M26 cash flow statement shows capital increase of R$2,755.7 million (9M25: R$51.2 million). The release does not describe its terms in the excerpt.
What drove it
- Company explanation: record RASK and PRASK reflect fare increases implemented to partially offset higher fuel prices, together with a deliberate redeployment of capacity away from fuel-intensive long-haul routes.
- Company explanation: CASK ex-fuel fell 2.1% from 2Q26 on better fixed-cost absorption from 4.0% higher capacity and cost discipline.
- Company explanation: CASK fell 5.1% from 2Q26, mainly due to a 9.9% reduction in fuel cost per liter.
- Company explanation: aircraft fuel rose 34.2% year over year, mainly driven by the 47.2% increase in fuel price per liter, partly offset by lower capacity and a 2.0% improvement in fuel burn per ASK.
- Company explanation: sales and marketing rose 27.3% year over year, mainly from higher incentive costs tied to increased fares and stronger domestic logistics revenue.
- Company explanation: maintenance and repairs rose 50.6% year over year, mainly from higher maintenance activity, and the comparison was affected by a lower expense base in 3Q25 that benefited from Chapter 11 credits.
- Company explanation: the reduction in other operating expenses of R$82.6 million was mainly due to lower legal claims, per the company.
- Company explanation: financial expenses included R$457.5 million of IFRS 16 lease interest and R$147.5 million of paid interest on advanced credit card receivables.
- Company explanation: beyond-the-metal business units accounted for 20% of RASK, with unit contribution of R$9.49 cents.
- Company explanation: EBITDA improvement versus 2Q26 reflects progress in strategic capacity allocation and improved operating leverage. The company says it recaptured more than 50% of the fuel price increase across 2Q26 and 3Q26 combined.
Concerns
- Adjusted EBITDA fell 39.4% year over year to R$1,204.2 million, and adjusted operating income fell 55.9% to R$560.1 million.
- Net result was a loss of R$(164.5) million in 3Q26, against R$(644.2) million a year earlier. Adjusted net result was R$(121.5) million.
- CASK rose 22.1% year over year to 42.54 R$ cents, with fuel cost per liter up 47.2%. The company says unit cost rose mainly because of higher fuel prices and lower capacity.
- Non-recurring items totaled R$373.6 million in 3Q26, including R$204.2 million of expenses on rejected aircraft and R$303.1 million in total within other expenses. The company says these items are related to the restructuring.
- Financial expenses were R$(1,078.4) million in 3Q26 and net debt / EBITDA was 3.3x (immediate liquidity basis).
- Domestic load factor fell 3.2 p.p. year over year to 81.1%. Break-even load factor rose 8.2 p.p. to 74.0%.
- Passengers fell 4.7% year over year and departures fell 5.8%. International ASK fell 32.7%.
- Total equity was R$(5,650.1) million at 30 September 2026.
What to watch
- Remaining R$1.3 billion FNAC tranche, which the company expects in 4Q26.
- Use of the up to R$2.0 billion fuel financing line guaranteed by the Brazilian Federal Government (FGE), which the company says covers domestic fuel payments in 4Q26 and 1Q27.
- Whether RASK and PRASK keep rising while capacity remains below 2025 levels, as the company says it will keep allocating seats to the highest-value markets.
- Fuel cost per liter, which fell 9.9% from 2Q26 but was 47.2% higher than 3Q25.
- Trend in adjusted EBITDA margin (21.4% in 3Q26 versus 34.6% in 3Q25) and the level of non-recurring items as the restructuring winds down.
- Leverage trend: net debt / EBITDA (immediate liquidity basis) of 3.3x at 3Q26.
- Load factor and break-even load factor, where domestic load factor declined year over year.
Balance sheet and cash flow
- Immediate liquidity was R$4,090.1 million at end of 3Q26 (R$3,659.2 million at 2Q26), or 18.7% of LTM revenues. Pro-forma immediate liquidity was approximately R$4.6 billion (21.1% of LTM revenues) including the US$100 million investment received in October.
- Cash and cash equivalents were R$2,543.0 million at end of 3Q26, against R$1,268.9 million at 2Q26. Accounts receivable fell to R$1,547.1 million from R$2,390.3 million. The company attributes the drop mainly to advancing available credit card receivables; credit card receivables balance was R$800.0 million.
- Gross debt was R$22,639.9 million, up 5.7% quarter over quarter. The company attributes the increase mainly to the first R$1.3 billion FNAC tranche drawn in September and higher lease liabilities, partly offset by prepayment of about R$400 million of higher-cost debt and about R$370 million of semiannual exit-financing interest.
- Net debt / EBITDA (LTM) using immediate liquidity was 3.3x, versus 5.2x a year earlier. Using available liquidity, the company reports 3.5x. The company says leverage was negatively affected by lower EBITDA from higher fuel prices.
- Recurring free cash flow was R$763.6 million in 3Q26 (managerial view). Net cash generated by operating activities under IFRS was R$1,447.0 million, and net cash used in investing activities was R$(194.3) million.
- Non-recurring items affecting cash totaled R$302.5 million in 3Q26 (managerial view), as stated by the company.
- Total assets were R$32,206.8 million and total equity was R$(5,650.1) million at 30 September 2026, per the IFRS balance sheet. Accumulated losses were R$(30,612.0) million.
- Average debt maturity excluding leases was 3.7 years. The average interest rate on dollar-denominated debt was 9.9%. The average interest rate on local-currency debt was 9.0% (CDI -4.0%).
Analysis
Azul's 3Q26 revenue was R$5,635.7 million, down 1.8% year over year on 6.9% lower capacity, and up 13.2% from 2Q26 on 4.0% higher capacity. Revenue per ASK (RASK) reached 47.23 R$ cents, a record that the company describes as all-time high, up 5.5% year over year and 8.8% from 2Q26. Passenger revenue per ASK (PRASK) was 43.60 R$ cents, and yield was 53.04 R$ cents, up 8.7% year over year. Load factor was 82.2%, down 2.4 p.p. year over year, with domestic load factor down 3.2 p.p. to 81.1% and international up 1.6 p.p. to 87.0%. The company attributes the unit revenue gains to fare increases implemented to partly offset higher fuel prices. Passengers fell 4.7% and average fare rose 3.1% to R$676.6.
Cost pressure remains the main issue. Aircraft fuel expense rose 34.2% year over year to R$(1,839.1) million, and fuel cost per liter rose 47.2% to R$5.63. CASK was 42.54 R$ cents, up 22.1% year over year but down 5.1% from 2Q26 when fuel cost per liter fell 9.9% sequentially. CASK ex-fuel was 27.12 R$ cents, up 12.3% year over year and down 2.1% from 2Q26. Adjusted operating income was R$560.1 million (9.9% margin) against R$1,270.4 million (22.1%) a year earlier, and adjusted EBITDA was R$1,204.2 million (21.4% margin) against R$1,987.8 million (34.6%). Both adjusted figures exclude R$373.6 million of non-recurring items. On an IFRS basis, operating income was R$186.5 million and EBITDA was R$830.6 million. Sequentially the margin recovered strongly: adjusted EBITDA margin rose from 10.2% in 2Q26 to 21.4%.
Below the operating line, the reported net result was a loss of R$(164.5) million, against R$(644.2) million a year earlier. The financial result improved to R$(724.5) million from R$(1,914.5) million, mainly because the prior-year period carried a large foreign exchange gain of R$918.7 million that did not repeat at the same level. Financial expenses were R$(1,078.4) million. Adjusted net result was R$(121.5) million. Nine-month results show the same pattern: adjusted EBITDA of R$3,413.7 million (21.2% margin) against R$4,516.3 million, and a net result of R$215.9 million against R$1,432.3 million.
On liquidity and capital allocation, immediate liquidity reached R$4,090.1 million, up 11.8% from 2Q26, and roughly R$4.6 billion on a pro-forma basis including the US$100 million American Airlines equity investment received in October. Recurring free cash flow was R$763.6 million on the company's managerial view, and cash rose to R$2,543.0 million. Gross debt increased 5.7% sequentially to R$22,639.9 million, mainly due to the FNAC tranche. Net debt / EBITDA on immediate liquidity was 3.3x, against 5.2x a year earlier. The release reports no dividends or buybacks.
The company provides no numerical guidance in this release. The read is that unit revenue and cash generation improved, while profitability versus 3Q25 remains well below prior levels. The figures that deserve attention are the 47.2% fuel price rise, the 22.1% CASK increase, the 55.9% fall in adjusted operating income, and the R$373.6 million of non-recurring items that the company excludes from its adjusted measures.
Management, verbatim
The third quarter showed that Azul's transformation is working.
John Rodgerson, CEO, Azul S.A.
We manage capacity for returns, not volume.
John Rodgerson, CEO, Azul S.A.
Unit cost rose 22.1% year over year, mainly because of higher fuel prices and lower capacity, but the trend is improving.
John Rodgerson, CEO, Azul S.A.
Not in the filing
stated, not guessed- Forward guidance for 4Q26 or FY2026 is not provided in the document, so guidance and vs_prior_guidance are null or empty.
- No previous-quarter values are printed for the income statement lines (revenue sub-lines, operating expense lines, financial result, net result) in the consolidated tables, so those qoq_change and prior_quarter fields are null.
- Prior-year comparisons are not printed for foreign currency exchange, net yoy change, and net cash from operating activities.
- Prior-year and prior-quarter values are not printed for recurring free cash flow and recurring levered free cash flow.
- Prior-period values for total assets and total equity are printed but no yoy or qoq change is printed for them.
- Prior-period values for pro-forma immediate liquidity, EBITDA as recorded and operating result as recorded are not printed.
- Quarter-over-quarter percentage change for operating income is printed as n.a. and is left null.
- Quarter-over-quarter change for international ASK is described only as broadly stable, with no figure printed.
- No share repurchase, dividend or capital return program is described in the release.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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 S.A. filed a Form 6‑K with the SEC presenting its Q3 2026 results, including detailed operating metrics and financing updates.
Ticker impact
Q3 2026 earnings release showing a 39% YoY drop in EBITDA and a 55.9% YoY decline in operating income.
potential downside as investors digest the sharp EBITDA decline
The primary disclosure of the quarterly results is new and material; the large EBITDA drop outweighs margin gains, likely prompting sell pressure.
Market effects
Brazilian airline sector may see broader scrutiny as fuel costs rise and capacity cuts continue.
Potential modest impact on Brazil's broader consumer discretionary index.
Limited; primarily affects investors with exposure to Latin American aviation.
Counterpoint
Margin expansion and record RASK could support a rebound if investors focus on operational improvements.
Key entities
- companyAzul S.A.
Brazilian airline reporting Q3 2026 results.
- companyAmerican Airlines
Provided a $100 million equity investment to Azul.
