🧾 What This Document Is

This is a 6-K filing, which is a report a foreign company (like Brazil's Azul) must file with the U.S. SEC to announce material, market-moving news. This specific report from March 27, 2026, is a "Material Fact" outlining Azul's financial and operational outlook after successfully emerging from its Chapter 11 bankruptcy restructuring process. It replaces all previous projections.

🏢 What The Company Does

👉 In simple terms, Azul is Brazil's largest domestic airline by the number of cities it serves. Think of them as the "essential connector" for Brazil, flying over 800 daily flights to 137+ destinations with a fleet of 180+ aircraft. Their business model focuses on a dense network of routes, often connecting smaller cities to major hubs.

🔥 The Restructuring Payoff: Massive Savings

The core of this announcement is the financial benefit from Azul's completed Chapter 11 restructuring. The company expects recurring annual savings of R$ 2.2 billion starting in 2026. This comes from two major areas:

• Interest Payments: Annual interest expenses are projected to be more than 50% lower than before the restructuring, thanks to a renegotiated and simplified debt profile. 👉 Why it matters: This is like refinancing a high-interest mortgage to a much lower rate—it frees up cash flow for operations and growth.
• Aircraft Leasing Costs: Recurring lease expenses are expected to drop by approximately one-third (33%) compared to pre-restructuring estimates. This was achieved by renegotiating leases and optimizing the fleet. 👉 Why it matters: Lower fixed costs make the airline more resilient during economic downturns.

✈️ Operational Outlook: Growth on a Diet

Despite the financial improvements, Azul is taking a very disciplined approach to flying. For the second quarter of 2026 (2Q26), they expect a 1% reduction in domestic capacity (the number of seats flown) year-over-year. 👉 Why it matters: This signals a shift in priority from aggressive growth to maximizing profitability and cash generation on every flight.

📦 Financial Position: A "Clean Slate"

The filing strongly emphasizes that the restructuring materially enhanced the capital structure. The old, burdensome debt and lease obligations have been renegotiated. This means Azul starts 2026 with a stronger, more predictable cash flow profile and significantly reduced financial risk, which is the main goal of any Chapter 11 process.

⚖️ Big Picture: Strengths & New Risks

👍 Strengths:

• Dramatically lower interest and lease costs create a stronger financial foundation.
• A more sustainable cost structure for long-term competitiveness.
• Operational focus on efficiency and margin protection over sheer growth.

⚠️ Risks & Caveats:

• The company explicitly states that all previous financial projections are discontinued. This new outlook is based on management's current estimates.
• Future results depend on market conditions, regulations, competition, and the successful execution of the new plan.
• The 1% capacity cut in Q2, while prudent, shows growth is being intentionally restrained, which could impact revenue in the short term.

🔮 What's Next

Azul will operate under this new, leaner financial model. The focus for 2026 and beyond will be on leveraging the savings to invest sustainably in long-term strategic priorities while maintaining financial resilience. Investors should expect regular updates on progress.

🧠 The Analogy

Azul's restructuring is like a homeowner who was drowning in high-interest debt and an expensive property lease. After a structured bankruptcy process, they successfully negotiated with the bank to cut their mortgage interest rate in half and convinced the landlord to lower their rent by a third. Now, with those massive monthly savings, they can finally afford to maintain the house and plan for the future, but they've decided to be cautious with big new expenses for now.

📇 Key Contacts & People

• Investor Relations: Tel: +55 11 4831 2880, Email: [email protected]
• Media Relations: Tel: +55 11 4831 1245, Email: [email protected]
• Signatory: Alexandre Wagner Malfitani, Chief Financial Officer

🧩 Final Takeaway

Azul has emerged from bankruptcy with a radically improved cost structure, targeting R$ 2.2 billion in annual savings. The airline is now prioritizing profit and cash flow over growth, signaling a more disciplined era. The big test is executing this new plan successfully in a competitive market.