Azul reverses profit and posts billion-dollar loss driven by exchange rates and fuel

Airline Azul reported a significant net loss of R$ 1.041 billion in the second quarter, completely reversing the gains of R$ 1.293 billion obtained in the same period of the previous year, in a movement that highlights the high vulnerability of the air transport sector to exogenous operating cost pressures. This adverse financial performance was intensified by a severe foreign exchange loss and soaring aviation fuel prices, challenging the company's tariff-passing capacity in an environment of volatile demand and dollarized costs. The current macroeconomic scenario reflects this systemic tension, with the exchange rate trading in the range of R$ 5.1859 per dollar and exhibiting an upward trend of 1.58% over a 7-day window, directly pressuring the balance sheets of companies with liabilities and obligations tied to the US currency. Looking at inflation and exchange rate indicators, the 12-month accumulated IPCA reached 4.44% in July 2026, presenting a 7-day variation increase to 4.23% and a monthly movement of -4.31%, while the Selic benchmark interest rate remains unchanged at contractionary levels of 14.00% per year. Concurrently, the commercial dollar rate (USD/BRL) set at R$ 5.19 accumulates a 0.3% rise over 30 days, reflecting risk aversion. Net revenue rose 0.7% to R$ 4.978 billion, a record for the period driven by higher fares, but failed to cover the 61.8% jump in fuel prices, which reached R$ 6.25 per liter. Furthermore, the 55.4% drop in quarterly Ebitda to R$ 501.1 million demonstrates that nominal revenue growth has not translated into real operational cash generation.