AzulFRA:8AZ3 +2.23%14 Operating Margin % is 12.35% as of Mar. 2026, which is 19% above its 10-year median of 10.41. GuruFocus rates FRA:8AZ3 with a GF Score™ of 14/100. The stock has 6 warning signs investors should review. Among 1,007 Transportation companies, Azul ranks better than 67.23% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Azul's Operating Income for the
three
months ended in Mar. 2026 was €112 Mil. Azul's Revenue for the
three
months ended in Mar. 2026 was €905 Mil. Therefore, Azul's Operating Margin % for the quarter that ended in Mar. 2026 was 12.35%.
The historical rank and industry rank for Azul's Operating Margin % or its related term are showing as below:
FRA:8AZ3'
s Operating Margin % Range Over the Past 10 Years
Min: -37.55 Med: 10.41 Max: 16.63
Current: 12.8
FRA:8AZ3's Operating Margin % is ranked better than 67.23% of 1007
companies
in the Transportation industry
Industry Median: 7.36
vs FRA:8AZ3: 12.80
Azul's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Azul's Operating Income for the
three
months ended in Mar. 2026 was €112 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €443 Mil.
Azul (FRA:8AZ3) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Azul Operating Margin % Related Terms
Azul Operating Margin % Historical Data
* Premium members only.
The historical data trend for Azul's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:8AZ3 vs DAL, UAL, LUV: Operating Margin % Comparison
For the Airlines subindustry, Azul's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Azul Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Azul's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Azul's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Azul's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Azul (FRA:8AZ3) has a Operating Margin % of 12.35% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Azul and its competitors. This is 19% above median its historical median of 10.41. According to the industry distribution chart, Azul ranks #330 out of 1007 companies in the Transportation industry, placing it in the top 32.8%.
Is Azul's Operating Margin % too high?
Azul's current Operating Margin % of 12.35% is 19% above median its 10-year median of 10.41. The Transportation industry median Operating Margin % is 7.36. Azul's value of 12.35% is 67.8% above this industry median. Based on the distribution chart, Azul ranks #330 out of 1007 companies in the Transportation industry, which is above the industry midpoint. Overall, Azul has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Azul's Operating Margin % compare to DAL and UAL?
According to the Transportation industry distribution chart, Azul ranks #330 out of 1007 companies for Operating Margin %. This puts Azul in the upper half of its industry. The industry median Operating Margin % is 7.36. Azul's value of 12.35% is 67.8% above this benchmark. While the company's 10-year median is 10.41 vs. the industry median of 7.36, Azul has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Azul's current Operating Margin % of 12.35% is 67.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Azul and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azul's current Operating Margin % is 12.35%, which is 19% above median its own 10-year median of 10.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azul stock overvalued right now?
Azul (FRA:8AZ3) has a current Operating Margin % of 12.35%. The current Operating Margin % is 12.35%, which is 19% above median its 10-year median of 10.41 and 67.8% above the Transportation industry median of 7.36. Azul's overall GF Score™ is 14/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Azul (FRA:8AZ3), the current Operating Margin % is 12.35% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Azul SA is involved in the operation of regular and non-regular airline passenger services, cargo or mail, passenger charter, provision of maintenance and hangarage services for aircraft, engines, parts and pieces, aircraft acquisition and lease, development of frequent-flyer programs, development of related activities, and equity holding in other companies. The company generates the majority of its revenue from Air transport and a small portion of its revenue from Ancillary revenues.
14GF Score
Get the complete analysis for FRA:8AZ3
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:8AZ3 has been successfully added to your 
