The material accounting policies and practices adopted by the Company are described in each corresponding note, except those that refer to more than one note, described below. The accounting policies have been consistently applied for the comparative years presented and for the Company’s consolidated financial statements.

The consolidated financial statements include information about the Company and its subsidiaries in which it held direct or indirect control. Control of a subsidiary is achieved when the Company is exposed, or has rights, to variable returns in such subsidiaries and has the power to influence the investee's operating and financial decisions.

The financial statements of the subsidiaries have been prepared using the same accounting policies as the Company.

All assets, liabilities, equity, income and expenses related to transactions between related parties are eliminated in full in the consolidation process.

The Company performs an annual review for impairment indicators to assess events or changes in economic, technological, or operating conditions that may indicate that an asset is impaired.

The recoverable amount of an asset or cash-generating unit is the higher of its fair value, less costs to sell and its value in use. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, a provision for impairment loss is recognized by reduction the carrying amount.

The previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount. The reversal is limited, so that the carrying amount of the asset does not exceed its recoverable amount, nor does it exceed the carrying amount previously determined, net of depreciation or amortization.

In estimating the asset's value in use, estimated future cash flows are discounted to present value, using a pre-tax discount rate that reflects the weighted average cost of capital.

As disclosed in note 3, Management makes judgments that have a significant effect on the amounts recognized in the consolidated financial statements, namely:


Description						Note

Provision for loss on short and long-term term investments						7
Provision for losses with deposits						10
Impairment of property and equipment						16
Impairment of intangible assets						18
Accounts payable - Breakage - GUC (General Unsecured Claims)						22
Air traffic liability, service and loyalty program - Breakage						25
Provision for return of aircraft and engines						28.1.1
Provision for tax, civil and labor risks						28.1.2

The Company continually reviews the assumptions used in its accounting estimates. The effect of revisions on accounting estimates is recognized in the financial statements in the year in which such revisions are made.

During the year ended December 31, 2025, the IFRS issued and amended its accounting standards on various matters, some of which are applicable to the preparation of these financial statements.

4.4.1Changes new standards and relevant accounting interpretations effective from 2025

The following accounting standards and interpretations described below became effective as of January 1, 2025.


Standard						Amendment

IAS 21						Effect of exchange rate changes and the potential lack of convertibility between currencies
IAS 28						Application of the equity method for measuring investments in subsidiaries

4.4.2New relevant accounting standards, changes and interpretations issued but not yet effective in 2025

The following accounting standards were issued but not yet effective in 2025 and Management is analyzing the impacts on the Company's balance sheet or statement of operations.


Standard						Amendment

IFRS 9						Review of the rules for classifying and measuring financial assets with variable and non‑linear cash flows
IFRS 18						New presentation and disclosure requirements in financial statements
IFRS 19						Disclosure of subsidiaries without public accountability
IAS 7 and IFRS 7						Increase transparency regarding liquidity risk and the maturities of financial instruments, loans and financing

Foreign currency transactions are recorded at the exchange rate in effect at the transactions date. Monetary assets and liabilities designated in foreign currency are determined based on the exchange rate in effect on the balance sheet date, and any difference resulting from currency conversion is recorded under the heading “Foreign currency exchange, net” in the statements of operation.


	Exchange rates
	Final rate				Average rate
	Year ended December 31,				Year ended December 31,
Description	2025	2024	Variation		2025	2024	Variation

U.S. dollar	5.5024	6.1923	(11.1)	%	5.5855	5.8369	(4.3)	%
Euro	6.4692	6.4363	0.5	%	6.3095	6.2275	1.3	%