Azul posts higher Q2 revenue but core earnings fall on fuel-cost surge

Azul SA

14/08/2026 01:56

By Gabriel Araujo
SAO PAULO, Aug 13 (Reuters) - Brazilian airline Azul AZUL3.SA reported record second-quarter operating revenue on Thursday, but core earnings fell 55% as a surge in fuel costs after the oil shock related to the U.S.-Israeli war on Iran squeezed margins..
The airline, Brazil's largest by cities served, cut capacity by nearly 11% year-on-year to deal with higher fuel costs and as part of its post-restructuring plan after emerging from a nine-month-long Chapter 11 process in February.
Total operating revenue rose 0.7% from a year earlier to 4.98 billion reais ($959.83 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 55.4% to 510.1 million reais.
Analysts polled by LSEG expected net revenue of 5.03 billion reais and EBITDA of 618 million reais.
Azul reduced capacity by 10.6% but said unit revenue rose as it implemented higher fares in response to the surge in fuel prices.
Average fares were up 9.5% year-on-year.
Fuel cost per liter rose 61.8%; total aircraft fuel expenses were up 41.2% to 1.96 billion reais.
Total gross debt fell 37.8% to 21.4 billion reais following completion of its financial restructuring.
Adjusted net loss stood at 1.07 billion reais in Q2, versus net loss of 475.8 million reais a year earlier.
     
($1 = 5.1884 reais)

(Reporting by Gabriel Araujo; Editing by Kylie Madry)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))