Azul is treating 2026 as a transition year after sharply reducing capacity in the second quarter and absorbing a steep jump in jet-fuel costs triggered by the Middle East oil shock. The Brazilian carrier cut overall capacity by 10.6% from a year earlier, with international flying down 24.9%, as it prioritised network discipline and cash preservation while still posting record quarterly revenue of about R$4.98 billion.
Chief executive John Rodgerson described the period as a quarter of transition, with fuel costs rising by almost R$700 million. Fuel cost per litre climbed 61.8% year on year, leaving profitability under pressure even as higher fares and revenue management helped offset part of the hit. Azul also expects to trim capacity by about 4% in the third quarter before returning to growth in the fourth quarter. The company is balancing liquidity, debt reduction and fleet planning against a volatile fuel environment, while maintaining a heavier reliance on domestic flying and newer aircraft.