v3.26.1
LOANS AND FINANCING
 12 Months Ended
Dec. 31, 2025
Disclosure of detailed information about borrowings [abstract]  
LOANS AND FINANCING LOANS AND FINANCING
18.1Accounting policies
Initially recognized at fair value, less any directly attributable transaction costs. After initial recognition, these financial liabilities are measured at amortized cost using the effective interest method.
18.2Movement of loans and financing
DescriptionAverage nominal rate p.a.Effective rate p.a.MaturityDecember 31,
2024		Funding
(–) costs
Transfer (c)
Debt into equity conversionPayment of principalPayment of interestInterest incurredForeign currency exchangeModifica-tions (a)Amortized costDecember 31,
2025
In foreign currency – US$
Senior notes – 20267.3%7.8%Jun-26196,241— — — — — 12,815 (22,119)— 648 187,585 
Senior notes – 202811.9%13.3%Aug-286,196,281 — — — — (555)56,727 (307,514)(5,929,442)3,762 19,259 
Senior notes – 202911.5%11.5%May-291,533,659 — — — — (815)15,635 (75,894)(1,443,339)— 29,246 
10.9%10.9%May-303,649,185 — — — — (5,096)46,605 (188,650)(3,309,622)— 192,422 
Senior notes 1L – 2028 (a)11.9%11.9%Aug-28— 396,779 — — (177,843)(182,960)639,724 (411,731)6,084,736 — 6,348,705 
Senior notes 2L – 202911.5%11.5%May-29— 26,854 — (489,310)(40,281)(48,685)104,196 (62,713)1,443,339 — 933,400 
Senior notes 2L – 203010.9%10.9%May-30— 58,290 — (1,123,740)(87,443)(105,702)226,289 (143,940)3,309,622 — 2,133,376 
Bridge notes———976,968 — — — (928,148)(29,027)11,087 (47,925)— 17,045 — 
New bridge notes ———— 555,314 — — (620,453)(29,534)29,534 (9,837)— 74,976 — 
DIP - 202615.0%
23.1% (b)
Feb-26— 9,390,624 — — — (588,089)589,039 (95,266)— 298,553 9,594,861 
Superpriority notes ———— 2,806,143 — — (2,953,837)(854,456)856,189 (169,228)— 315,189 — 
Aircraft, engines and others
Sofr 1M + 4.6%
8.5%May-26729,110 — — — — (45,768)43,311 (80,289)— — 646,364 
Sofr 3M + 2.6%
10.0%Dec-27116,145 284,671 — — (137,561)(42,547)17,131 (22,620)— 5,111 220,330 
———— 103,136 (102,757)— — (840)834 (373)— — — 
4.7%4.7%Jun-25145,822 — — — (101,323)10,576 7,626 (21,500)(29,985)478 11,694 
Executed letters of credit (d)———— 1,291,133 102,757 — — — — (17,784)— — 1,376,106 
13,543,411 14,912,944 — (1,613,050)(5,046,889)(1,923,498)2,656,742 (1,677,383)125,309 715,762 21,693,348 
In local currency – R$
Debentures (a)
CDI + 4.0%
18.8%Feb-31841,858 — — — (210,379)(104,684)134,564 — (9,635)6,749 658,473 
Executed derivatives (d)———— — 38,576 — (335)— — — — — 38,241 
Executed letters of credit (d)———— 704,757 — — (35,215)— — — — — 669,542 
Others———596,148 — — — (561,593)(35,125)363 — — 207 — 
1,438,006 704,757 38,576 — (807,522)(139,809)134,927 — (9,635)6,956 1,366,256 
Total in R$14,981,417 15,617,701 38,576 (1,613,050)(5,854,411)(2,063,307)2,791,669 (1,677,383)115,674 722,718 23,059,604 
Current 2,207,199 13,783,259 
Non-current 12,774,218 9,276,345 

(a)    Due to the restructuring, R$542,438 was recorded in the statement under the caption “Restructuring of loans and financing”. The amount refers to R$396,779 of incorporation of fees and R$155,294, from debt issuance costs of the original funding, and the reversal of R$9,635 in interest and fees.
(b)    The effective rate of 23.1% p.a. are due to the very short maturity terms and transaction costs.
(c)    The balances of the transfers are between the line items “Loans and financing” and “Derivative financial instruments.”
(d)    On the date of disclosure, the fees and maturities are being negotiated.
DescriptionAverage nominal rate p.a.
Effective rate
MaturityDecember 31,
2023		Funding
(–) costs		Payment of principalPayment of interestInterest incurredForeign currency exchangeEffects of restructuringAmortized costDecember 31,
2024
In foreign currency – US$
Senior notes – 20245.9%6.3%Oct-24332,099 — (397,696)(12,017)17,121 59,679 — 814 — 
Senior notes – 20267.3%7.8%Jun-26152,572 — — (13,299)12,998 43,322 — 648 196,241 
Senior notes – 202811.9%13.3%Aug-283,922,731 905,219 — (620,516)633,483 1,325,488 (7,502)37,378 6,196,281 
Senior notes – 202911.5%11.5%May-291,165,545 41,476 — (148,653)149,819 325,472 — — 1,533,659 
Senior notes – 203010.9%10.9%May-302,777,513 93,517 — (335,174)337,752 775,577 — — 3,649,185 
Bridge notes – 2025
Sofr Index + 8.3% to 10.7%
37.8% (a)
Jan-25— 856,502 — — 18,726 65,215 — 36,525 976,968 
Aircraft, engines and others
Sofr 1M + 4.6%
9.8%May-2679,086 545,797 — (36,214)40,895 99,546 — — 729,110 
Sofr 3M + 2.6%
11.3%Jun-27— 104,892 — (1,819)2,616 10,021 — 435 116,145 
4.9%5.9%Mar-29284,279 — (183,580)(11,328)9,961 45,547 — 943 145,822 
8,713,825 2,547,403 (581,276)(1,179,020)1,223,371 2,749,867 (7,502)76,743 13,543,411 
In local currency - R$
Working capital
CDI + 1.6%
20.0%Jan-2529,648 982,796 (477,191)(9,811)44,118 — — 23,079 592,639 
Debentures
CDI + 5.0%
15.2%Dec-28919,072 542,660 (637,676)(143,788)129,410 — 18,173 14,007 841,858 
Aircraft, engines and others
Selic + 5.5%
10.0%May-2512,771 — (7,039)(7,173)1,362 — — 79 — 
6.5%6.5%Mar-2723,596 — (19,984)(936)833 — — — 3,509 
985,087 1,525,456 (1,141,890)(161,708)175,723 — 18,173 37,165 1,438,006 
Total in R$9,698,912 4,072,859 (1,723,166)(1,340,728)1,399,094 2,749,867 10,671 113,908 14,981,417 
Current1,100,051 2,207,199 
Non-current8,598,861 12,774,218 
(a)The effective rate of 37.8% per year is due to the very short maturity and the transaction costs.
18.3Schedule of amortization of debt
December 31,
Description20252024
2025— 2,207,199 
202613,783,259 1,211,585 
2027187,397 160,172 
20285,880,851 6,267,806 
2029970,121 1,520,407 
After 20292,237,976 3,614,248 
23,059,604 14,981,417 
Current13,783,259 2,207,199 
Non-current9,276,345 12,774,218 
18.4Restructuring
18.4.1Senior notes
During the first quarter of 2025, in exchange for the substantial balance of Senior Notes 2028, 2029 and 2030 – (“Existing Notes”), the subsidiary Azul Secured issued Senior Notes 1L – 2028 and Senior Notes 2L – 2029 and 2030 with the following conditions:

•Senior Notes 1L – 2028: R$6,180,810 (equivalent to US$1,048,839) in principal amount, on a first-lien basis, due in 2028, remuneration of 11.9% p.a. and incorporation into the principal of fees in the amount of R$396,779;

•Senior notes 2L – 2029: R$1,443,339 (equivalent to US$238,015) in principal amount, on a second-lien basis, maturing in 2029, remuneration of 11.5% p.a. and incorporation of interest into the principal of R$26,854; and

•Senior notes 2L – 2030: R$3,309,622 (equivalent to US$546,620) in principal amount, on a second-lien basis, maturing in 2030, remuneration of 10.9% p.a. and incorporation of interest into the principal of R$58,290.

The Senior Notes 1L – 2028 are guaranteed on a first lien basis after the payments of the super-priority Notes, but before the payments of the Senior Notes 2L – 2029 and 2030, in addition to other debts and other obligations, as per priorities established in an agreement between creditors. The guarantee package consists of the fiduciary assignment of the flow of receivables of Azul Viagens, the loyalty program and the fiduciary sale of the intellectual property of the loyalty program.

In addition, the Company has executed supplemental indentures to amend the terms of the Existing Notes in accordance with its solicitation of consents to substantially eliminate all restrictive covenants, events of default and collateral.

In accordance with IFRS 9 – Financial Instruments, the Company concluded that the renegotiation falls within the scope of debt extinguishment. Therefore, the proportional amounts previously recorded were extinguished and a new debt was recorded. For this reason, any costs or fees incurred were recognized in the statements of operations.

In the second quarter of 2025, the Company converted R$1,613,050 of the principal amount of the Senior notes 2L – 2029 and 2030 into 450,572,669 preferred shares at a price of R$1.95 (reais), and recognized a gain of R$734,433 in the statements of operations under the line item “Debt into equity conversion”.

18.4.2    Debentures

In September 2025, the Company renegotiated the terms of its non-convertible debentures, resulting in the postponement of the maturity date to February 2031, in the principal and interest amortization schedule to monthly starting in March 2026 and September 2025, respectively, and the remuneration rates to CDI + 3.9% p.a. as from September 2025.

In accordance with IFRS 9 – Financial Instruments, the Company concluded that the renegotiation falls within the scope of debt extinguishment. Consequently, the previously recorded proportional amounts were derecognized, and a new liability was recognized. For this reason, any costs or fees incurred were recognized in the statements of operations.
18.5Relevant Funding
18.5.1Superpriority Notes
During the first quarter of 2025, the subsidiary Azul Secured issued superpriority notes in a private, in the principal amount of R$3,093,825 (equivalent to US$525,000), with costs of R$315,190, interest equivalent to Sofr Index + 8.3% p.a. (if paid in cash) or + 10.7% p.a. (if is capitalized), quarterly interest payments, the first in February 2025, and due in January 2030.

Additionally, interest in the amount of R$27,508 was incorporated into the principal. In July 2025, the balance was settled.

18.5.2New bridge notes
In April 2025, the Company obtained from its current debt security holders an additional financing of R$610,208 (equivalent to US$107,656), with costs of R$74,976, interest equivalent to 13.5% p.a., monthly interest amortization and maturity in October 2025.

Additionally, interest in the amount of R$20,082 was incorporated into the principal. In July 2025, the balance was settled.

18.5.3Debtor in possession – DIP
In May 2025, the Company secured the right to a DIP financing facility of approximately US$1.6 billion, made available in accordance with court authorization. The Company obtained access to R$9,080,656 net of funding costs of R$412,881, resulting in R$8,667,775 (equivalent to US$1.6 billion), bearing interest at 15.0% p.a. and maturing in February 2026.

Additionally, interest in the amount of R$722,849 was capitalized into the principal.

In July 2025, using the funds from the DIP facility, the Company made payments on the Superpriority Notes and New Bridge Notes transactions, mentioned above.

18.5.4Letters of Credit
During 2025, the subsidiary ALAB recognized the amount of R$1,995,890 related to the execution of letters of credit that were used for security deposits, maintenance reserves and other.

18.6Covenants
The Company continues to measure the restrictive covenants of some of its loan and financing contracts according to the original conditions, while awaiting future agreements that may be reached with its creditors under the scope of Chapter 11, as shown below.
Although the Chapter 11 process may have triggered the non-fulfillment of certain obligations, counterparties are prevented from taking any action as a result of alleged defaults. Therefore, the related debt remains classified in these financial statements according to the originally established contractual schedule.
Covenant related to:Measurement indicatorsIndicators needed to a measurement.Reached
9th and 10th issue of debenturesAnnual
(i) adjusted debt service coverage ratio (ICSD) equal to or greater than 1.2;
(ii) financial leverage less than or equal to 6.5 in 2023; 5.0 in 2024 and 2025; and 4.5 from 2026.
Waiver
Aircraft, engines and othersQuarterly
(i) The total cash balance on the last day of the quarter is not less than R$1 billion.
Reached
Annual
(ii) Leverage: equal to or less than 5.5, with the referred Index being obtained by net debt / EBITDA on the last day of the year.
Not achieved
Senior notes 1L, 2LQuarterly
(i) Immediate Liquidity exceeding R$350 million on March 31, 2025;
(ii) Immediate Liquidity exceeding R$500 million as of June 30, 2025.
Reached
DIPBiweekly
Liquidity in excess of R$90 million every fortnight, starting from June 13, 2025.
Reached