Azul Investor Day Takeaways: Views on Jet Fuel Recapture, Capacity Management and Cash Flow Generation

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Azul Investor Day Takeaways: Views on Jet Fuel Recapture, Capacity Management and Cash Flow Generation

J P M O R G A N Latin America Equity Research

09 July 2026

Azul Neutral

AZUL3.SA, AZUL3 BZ

Investor Day Takeaways: Views on Jet Fuel Recapture, Price (08 Jul 26):R$22.44

Capacity Management and Cash Flow Generation

Latin American Transportation

Today, Azul (AZUL3, N) hosted its Investor Day in New York, with online Guilherme Mendes AC

transmission, in the presence of Mr. John Rodgerson (CEO), Mr. Abhi Shah (55-11) 4950-4105

(President and CRO), Mr. Antonio Garcia (CFO), and Mr. Fabio Campos (CCO). guilherme.g.mendes@jpmorgan.com

Overall, management reinforced its commitment to profitability and cash flow Julia Orsi

generation, committing to a moderate growth rate in the coming years. The (55-11) 4950 3351

company did not introduce full-year guidance nor update its post-Chapter 11 julia.orsi@jpmorgan.com

Banco J.P. Morgan S.A.

business plan. We maintain our Neutral rating on AZUL, which is currently trading

at 3.6x EV/EBITDA on a 12-month forward basis.

• Message from the CEO. During the event, Mr. John Rodgerson highlighted

the following pillars: (i) Focus on rationality and sustainable growth to

optimize free cash flow generation. As a result, Azul expects to downsize

capacity in 2026 and targets a capacity CAGR of ~3% for 2026–2029 (vs.

~11% pre-restructuring). (ii) Maintain a strengthened balance sheet following

the Chapter 11 process. (iii) Further diversify earnings streams, with non-

passenger revenues already accounting for over 23% of total unit revenues, and

an increased focus on high-value customers and premium services. (iv)

Differentiated network with limited overlap vs. peers, leveraging key hubs in