Azul tightens its belt, targets aviation fuel prices, and may reduce flights in cities while Campinas, Belo Horizonte, and Recife become key components of the new network.

Written by Viviane Alves

Published on 06/06/2026 at 20:28

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Rise in aviation kerosene leads company to review frequencies, prioritize strategic hubs, and maintain cuts to protect cash flow

Azul is expected to expand flight cuts in Brazil and abroad after the rise in aviation fuel increased the company’s operational costs. This measure was confirmed by CEO John Rodgerson, who stated that the company will continue to adjust its capacity while the global situation remains uncertain.

According to information released by Reuters on Friday, during preparations for a global aviation leaders meeting held in Rio de Janeiro, Rodgerson explained that the prolongation of the conflict in Iran contributed to keeping aviation kerosene prices under pressure. The company initially believed that the war would be shorter. However, the current scenario has led the company to maintain the strategy of reducing frequencies on certain routes.

Company reviews operations and focuses efforts on more profitable routes

Most of the cuts made by Azul during the second quarter occurred in international flights. New adjustments, however, are expected to focus mainly on domestic operations. The strategy seeks to align supply with demand and reduce impacts caused by the sector’s higher costs.

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Campinas, Belo Horizonte, and Recife gain strategic importance

The main hubs of Azul in Campinas, Belo Horizonte, and Recife have taken on an even more significant role within the company’s operational strategy. These bases concentrate a significant part of the air network and should receive special attention during the process of reorganizing operations.

The use of aircraft has also become the focus of the company’s analyses. Rodgerson stated that keeping planes operating for long periods ceases to be advantageous when fuel costs increase significantly. The current goal is to seek greater operational efficiency without compromising the connectivity of the main markets served.

Azul executive during an interview in a corporate environment, talking about the company's strategies in light of the increase in aviation kerosene costs and the need to reduce flight frequencies. — John Rodgerson, CEO of Azul, advocates adjustments in the air network while the company faces the impacts of rising aviation fuel costs.

Aviation kerosene represents almost half of the sector’s costs

The weight of fuel in the accounts of airlines continues to be one of the main challenges for the segment. Data from the Brazilian Association of Airline Companies (Abear) indicates that aviation kerosene (QAV) now represents approximately 45% of the operational costs of companies in the sector.

The federal government renewed subsidies for aviation fuel at the end of May. A few days later, on June 1st, Petrobras announced a reduction of 14.2% in the average selling price of QAV to distributors. The drop corresponded to R$ 0.93 per liter compared to the previous month.

Even in the face of this reduction, Azul believes that prices will remain pressured during the second quarter. The period is traditionally weaker for demand and requires greater attention to the financial balance of operations.

Financial restructuring strengthens the company’s position

The company assesses that its current financial situation offers more favorable conditions to face the moment of volatility. Azul completed its exit from the Chapter 11 process in February, carried out with the support of United Airlines and American Airlines.

The strengthening of the balance sheet allowed the company to expand its ability to adapt to market changes. The strategy involves the continuous review of routes, frequencies, and fleet utilization, always focusing on cash preservation.

The company’s expectations indicate that higher fares may find support in the third and fourth quarters if demand advances in the coming months. The behavior of fuel prices will continue to be one of the most observed factors by the airline sector.

Will the increase in aviation kerosene costs be enough to cause deeper changes in the Brazilian air network in the coming months?

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Azul tightens its belt, targets aviation fuel prices, and may reduce flights in cities while Campinas, Belo Horizonte, and Recife become key components of the new network.

Rise in aviation kerosene leads company to review frequencies, prioritize strategic hubs, and maintain cuts to protect cash flow

Company reviews operations and focuses efforts on more profitable routes

Giant lizard from South America becomes a headache in Georgia, spreads across dozens of counties, threatens bird eggs and alligator hatchlings, and prompts the government to urgently ask residents for help.

Campinas, Belo Horizonte, and Recife gain strategic importance

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Dissatisfied with seeing people sleeping on the street, a man named Ryan Donais started building small mobile homes so that homeless people can escape the cold, each equipped with a bed, running water, electricity, and heating.

Cambodia has started digging a nearly 180-kilometer canal to connect the Mekong River directly to the sea and reduce its dependence on the ports of neighboring Vietnam.

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