Azul S.a. · BMFBOVESPA:AZUL3
Azul — Q1 2025 Earnings Presentation
17 slides from Azul's earnings presentation, May 14, 2025
Slide 1: 1Q25 Results
1Q25 Results May 14, 2025
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is only a summary and does not purport to be complete. This presentation has been prepared solely for informational purposes and should not be construed as financial, legal, tax, accounting, investment or other advice or a recommendation with
Slide 3: Solid and Unique Business Model
Solid and Unique Only carrier in 82% of routes Business Model Flexible and fuel-efficient fleet High-growth business units Exceptional customer service Lowest cost structure Supportive stakeholders 3
Slide 4: Network Improvement
Network NetworkImprovement Improvement Orlando Paris Curaçao Fort Lauderdale - Miami Madri Porto Strengths Boa Vista Lisboa Focus on Profitable Markets São Gabriel da Cachoeira Macapá Salinópolis Santa Isabel do Rio Negro Porto Trombetas Monte Dourado Porto De MozBreves Belém São Luís Manaus Parinti
Slide 5: Strong Operational Results
Strong Operational Results 1Q25 Revenue 1Q25 RASK R$5.4 billion R$42.14 cents 1Q25 EBITDA¹ 1Q25 EBIT¹ R$1.4 billion R$570.6 million 25.7% margin 10.6% margin Positive results and industry-leading profitability 5 ¹Adjusted for non-recurring items related to restructuring, reducing EBIT and EBITDA by
Slide 6: Strong Unit Revenue Even with Capacity Growth
Strong Unit Revenue Even with Capacity Growth ASK RASK (Billion) (R$ cents) +15.6% ~ flat 12.8 42.2 42.1 11.1 1Q24 1Q25 1Q24 1Q25 Maintaining industry-leading RASK even with capacity increase of 16% YoY 6
Slide 7: Beyond the Metal: Strong Contribution from Business Units
Beyond the Metal: Strong Contribution from Business Units RASK (% of total) 19% 23% 81% 77% 1Q24 1Q25 Business units Passengers Business units accounted for 23% of RASK and 35% of EBITDA in 1Q25, at more than R$480 million 7
Slide 8: Beyond the Metal: Continued High Growth from Business Units
Beyond the Metal: Continued High Growth from Business Units Flown Revenue Gross Billings International Revenue (%) (%) (%) 65.0% 55.8% 61.6% 1Q24 1Q15 1Q24 1Q25 1Q24 1Q25 Business units leverage Azul’s unparalleled network and flexible fleet, providing low-risk growth 8
Slide 9: Improvements on Ancillary Revenues
Improvements on Ancillary Revenues Ancillary Revenues Ancillary Revenues per PAX (%) (R$) +14.2% +22.3% 62.7 54.9 1Q24 1Q25 1Q24 1Q25 9
Slide 10: Launch of Top Tier Co-Branded Mastercard
Launch of Top Tier Co-Branded Mastercard Leveraging Azul’s high percentage of premium co-branded cards 10
Slide 11: Lowest Unit Cost Among Peers
Lowest Unit Cost Among Peers 1Q25 CASK (R$ cents) 6.3% 1.1% 40.20 37.68 38.10 1Q25 Competitor 1* Competitor 2 Azul CASK below competition, even with diversified fleet and lower average aircraft size Source: Companies filings 11 *Estimated CASK considering publicly available information
Slide 12: Increasing Aircraft Utilization and Productivity
Increasing Aircraft Utilization and Productivity Aircraft Utilization* Productivity (Block hours per day) (Million ASK per FTE) +4.7% +18.9% 12.1 835 11.5 702 1Q24 1Q25 1Q24 1Q25 Elevate Plan initiatives leading to higher aircraft utilization and productivity, also increasing capacity 12 *Excludes f
Slide 13: ASK Recovery
ASK Recovery ASK Loss vs. Forecast (%) Floods in the OEM Impact Operational Improvement South of Brazil 0.2% -0.1% -0.5% -1.5% -1.6% -2.0% -2.5% -1.9% -2.6% -2.2% -3.1% -3.4% -3.3% -4.4% -4.0% -5.7% -7.1% Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-
Slide 14: Improvement in Operation Will Translate into Cost Reduction
Improvement in Operation Will Translate into Cost Reduction Irregular Operations (IROPs) Client Reaccommodation Costs (%) (%) -65.6% -75.0% Dec-24 Jan-25 Feb-25 Mar-25 Dec-24 Jan-25 Feb-25 Mar-25 Several initiatives improving operational performance, increasing customer satisfaction and reducing cos
Slide 15: Macro Improvements to Support EBITDA Growth
Macro Improvements to Support EBITDA Growth Foreign Exchange Rate Heating Oil (R$/US$) (US$) 6.2 -9.3% 2.7 -17.2% 6.1 2.6 2.5 6.0 2.4 5.9 2.3 5.8 2.2 5.7 2.1 5.6 2.0 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Fuel expenses would have been R$208 million lower in 1Q25 consid
Slide 16: Further Opportunities to Expand Margins
Further Opportunities to Expand Margins Unique network Fleet transformation High-growth Transformational and flexible fleet and higher utilization business units initiatives Strategic competitive advantages and unique opportunities leading to continued margin expansion 16
Slide 17: Thank you.
Thank you. INVESTOR RELATIONS Contact us +55 11 4831-2880 invest@voeazul.com.br www.voeazul.com.br/ir 17