Brazilian low-cost carrier Azul has reported a record-breaking third quarter across a wide range of metrics, including revenue, operating income, EBITDA, and load factor.
Total revenue grew 11.8% to R$5.7 billion ($1.1bn), while EBITDA rose 20.2% to R$2 billion, with a margin at 34.6%. Operating income rose 23.7% to R$1.27bn.
Revenue per available seat kilometre (RASK) and passenger revenue per available seat kilometre (PRASK) hit new records of R$ 44.76 cents and R$ 41.30 cents respectively.
Capacity increased 7.1%, passenger demand grew 9.7%, and load factor grew to 84.6%.
John Rodgerson, CEO of Azul, said the company’s “impressive” third-quarter performance reinforces its position as “one of the most profitable airlines in the world”.
“We could not be more excited about the future,” he said. “We are truly building Azul into a resilient, robust business focused on cash-generation and growing units, combined with industry-leading customer service and operational excellence.”
During the quarter, the CEO said Azul focused on cost reduction through savings measures initiated during its Chapter 11 bankruptcy process.
Cost per available seat kilometre (CASK) fell 2% quarter over quarter, and productivity measured in ASKs per number of employees (FTE) rose 8.6% year over year.
Depreciation and amortisation increased 14.6% or R$91.3 million, driven by an overall increase in fleet size and the company's fleet transformation process.
There was also an increase in right-of-use assets recognised at a higher foreign exchange rate, and an increase in spare engines due to supply issues with OEMs.
On a per-ASK basis, depreciation and amortisation increased 7%, mainly due to the addition of 13 Embraer E2 aircraft.
As of September 30, 2025, Azul had a passenger operating fleet of 185 aircraft with an average aircraft age of 7.3 years (excluding Cessna aircraft).
Azul closed the third quarter with R$3.4 billion in available liquidity, up 38% compared to the same period last year.
In July, Azul accessed $1.1 billion of its $1.6 billion debtor-in-possession (DIP) financing.
Of this amount, $910 million was used to pay down bridge loans, superiority notes, convertible debentures and other debts, and $200 million became additional liquidity for Azul.
In November, as covered by Airline Economics, Azul received court approval for its Chapter 11 reorganisation plan and $650 million backstop commitment agreement, clearing both proposals for a vote by impaired creditors.
It also entered into separate equity investment agreements with United Airlines and American Airlines, totalling $200 million in new funds for Azul at emergence from bankruptcy, which expected to take place by February 2026.
“This plan confirms that Azul is on track to emerge with significantly reduced debt, lower lease liabilities, and with substantially improved leverage, now projected at 2.5x upon emergence,” said Rodgerson.