We are exposed to various market risks, primarily related to potential loss arising from adverse changes in interest rates and foreign currency exchange rates. We have established policies and procedures to manage sensitivity to interest rate and foreign currency exchange rate risk. These procedures include the monitoring of our levels of exposure to each market risk, including an analysis based on forecast of future cash flows, the funding of variable rate assets with variable rate liabilities, and limiting the amount of fixed rate assets which may be funded with floating rate liabilities. We may also use derivative financial instruments to mitigate the effects of interest rate fluctuations and to reduce our exposure to exchange rate risk. The following sections address the significant market risks associated with our financial activities. A. Interest Rate Risk Our exposure to market risk for interest rate fluctuations principally relates to changes in the market interest rates of our U.S. dollar-denominated and real-denominated monetary assets and liabilities, principally our short- and long-term loans and financing. Increases and decreases in prevailing interest rates generally translate into increases and decreases in interest expense. Additionally, the fair values of interest rate-sensitive instruments are also affected by general market conditions. Our short- and long-term loans and financing totaled US$2,593.8 million as of December 31, 2025 and were denominated in U.S. dollars, Brazilian reais and euros. Of the total amount of debt denominated in U.S. dollars (i.e., US$ 2,377.9 million), US$2,163.0 million was subject to fixed rates. The remaining floating rate U.S. dollar-denominated debt, or US$214.8 million, which corresponds to 9.0% of our debt denominated in U.S. dollars, was indexed to the SOFR rate or the Securities Industry and Financial Markets Association rate. Of our US$78.3 million Brazilian real-denominated debt as of December 31, 2025, US$39.4 million bears interest at a variable rate based on the CDI rate and the Brazilian reference rate (taxa referencial), and US$38.8 million bears interest at a fixed rate. Of our US$137.6 million euro-denominated debt as of December 31, 2025, US$0.2 million bears interest at a variable rate based on the Euro Interbank Offered Rate, and US$137.4 million bears interest at a fixed rate. 131 The table below provides information about our short-term loans and financing as of December 31, 2025, which are sensitive to changes in interest rates and foreign currency exchange rates. As of December 31,2025 WeightedAverageInterestRate2025(1) Total Amount Outstanding Total Fair Value (%) (in US$ millions) Short-Term Debt U.S. dollars (Fixed indexed) 5.7 % 40.1 1,024.0 U.S. dollars (Floating indexed) 4.5 % 16.4 28.7 Euros (Fixed rate) 3.9 % 43.4 45.3 Euros (Floating indexed) 3.8 % 0.2 0.2 Reais (Fixed rate) 6.4 % 1.4 1.9 Reais (Floating indexed) 3.4 % 3.8 4.8 Total short-term debt 105.3 1,104.9 ______________ (1)The interest rate refers exclusively to the weighted average of our indebtedness (short-term and long-term). It does not represent the indexed rates as of December 31, 2025. The table below provides information about our long-term loans and financing as of December 31, 2025, which are sensitive to changes in interest rates and foreign currency exchange rates: As of December 31,2025 WeightedAverageInterestRate2025(1) Total Amount Outstanding 2027 2028 2029 2030 2031 and thereafter Total Fair value (%) (in US$ millions) Long-Term Debt U.S. dollars (Fixed rate) 5.7 % 2,123.1 7.5 20.0 21.3 289.2 1,785.1 1,289.9 U.S. dollars (Floating indexed) 4.5 % 198.4 42.0 42.2 9.9 6.4 97.9 225.4 Euros (Fixed rate) 3.9 % 94.0 — — — 94 — 95.2 Reais (Fixes rate) 6.4 % 37.4 1.6 3.5 3.5 3.5 25.3 31.0 Reais (Floating indexed) 3.4 % 35.6 — 0.4 3 3 30 22.2 Total long-term debt 2,488.5 51.1 66.1 37.5 395.9 1,937.9 1,663.7 ______________ (1)The interest rate refers exclusively to the weighted average of our indebtedness (short-term and long-term). It does not represent the indexed rates as of December 31, 2025. 132 B. Foreign Exchange Rate Risk In managing our foreign currency risk, we focus on balancing our non-U.S. dollar-denominated assets against our non-U.S. dollar-denominated liabilities plus shareholders’ equity in relation to our forecasts of future cash flows. Beyond the foreign currency exposure related to our loans and financing as summarized above, we also have other assets and liabilities denominated in currencies other than the U.S. dollar. These monetary assets and liabilities are primarily cash and cash equivalents, financial assets, accounts receivable and payable, dividends and certain other assets and liabilities, and are primarily denominated in Brazilian reais. In addition, transactions in foreign currencies are translated into the functional currency at the exchange rates at the dates of the transactions. Assets and liabilities for each statement of financial position presented are translated at the closing rate at the reporting date. Foreign exchange gains and losses resulting from this translation are recognized in profit or loss as foreign exchange gain (loss), net. Customer advances and advances to suppliers for goods or services in foreign currencies are translated to our functional currency on the transaction date, and no subsequent translation is recognized. The effects on these assets and liabilities of the appreciation or devaluation of other foreign currencies against the U.S. dollar result is recorded as foreign exchange gains (losses), net in our financial statements. Our cash flow exposure comes as a result of the fact that in 2025, 3.4% of our revenues and 13.5% of our total costs were denominated in reais, including payroll expenses in Brazil. Having more real-denominated costs than revenues generates the cash flow exposure. To mitigate such risk and to manage the volatility of cash flows in foreign currency, we enter into derivative instruments in the ordinary course of our business. For additional information, see note 7 to our 2025 audited consolidated financial statements. The table below provides information about our assets and liabilities exposed to foreign currency risk as of December 31, 2025, as well as the derivative transactions outstanding at the same date: Financial instruments indexed to currencies other than the U.S. dollar Outstanding Amount by Year of Maturity Total Outstanding Amount 2026 2027 2028 2029 2030 and thereafter Total Fair Value (in US$ millions) ASSETS Cash and cash equivalents and financial investments In Reais 210.8 210.8 — — — — 210.8 In Euro 204.8 204.8 — — — — 204.8 In other currencies 3.0 3.0 — — — — 3.0 Trade accounts receivable In Reais 28.7 28.7 — — — — 28.7 In Euro 20.6 20.6 — — — — 20.6 In other currencies 10.3 10.3 — — — — 10.3 Other assets In Reais 29.9 7.8 22.1 — — — 29.9 In Euro 6.5 6.1 0.4 — — — 6.5 In other currencies 0.4 0.4 — — — — 0.4 Derivative financial instruments In Reais 8.7 8.7 — — — — 8.7 Total assets in Reais 278.1 256.0 22.1 — — — 278.1 Total assets in Euro 231.9 231.5 0.4 — — — 231.9 Total assets in other currencies 13.7 13.7 — — — — 13.7 133 Financial instruments indexed to currencies other than the U.S. dollar Outstanding Amount by Year of Maturity Total Outstanding Amount 2026 2027 2028 2029 2030 and thereafter Total Fair Value (in US$ millions) LIABILITIES Loans In Reais 78.2 5.2 1.6 3.8 6.3 61.3 59.9 In Euro 137.6 43.6 — — — 94.0 140.7 Accounts payable to suppliers In Reais 179.9 179.9 — — — — 179.9 In Euro 34.2 34.2 — — — — 34.2 In other currencies 4.6 4.6 — — — — 4.6 Other accounts payable In Reais 25.8 9.0 16.8 — — — 25.8 In Euro 10.9 10.9 — — — 10.9 In other currencies 0.4 — 0.4 — — — 0.4 Derivative financial instruments In Reais 2.9 2.5 0.4 — — — 2.9 In Euro 2.8 2.8 — — — — 2.8 Total liabilities in Reais 286.8 196.6 18.8 3.8 6.3 61.3 268.5 Total liabilities in Euro 185.5 91.5 — — — 94.0 188.6 Total liabilities in other currencies 5.0 4.6 0.4 — — — 5.0 Total exposure in Reais (8.7) 59.4 3.3 (3.8) (6.3) (61.3) 9.6 Total exposure in Euro 46.4 140.0 0.4 — — (94.0) 43.3 Total exposure in other currencies 8.7 9.1 (0.4) — — — 8.7 For further information, see Note 26.1.5 to our 2025 audited consolidated financial statements included elsewhere in this annual report. C. Credit Risk We may incur losses if counterparties to our various contracts do not pay amounts that are owed to us. In that regard, our primary credit risk derives from the sales of aircraft, spare parts and related services to customers, including the financial obligations related to those sales in the cases where we provide guarantees for the benefit of the providers of finance to the aircraft purchases of our customers. We are also exposed to the credit risk of the counterparties to our financial instruments. Financial instruments which may potentially subject us to credit risk concentration include (i) financial investments and other financial instruments, (ii) trade accounts receivable, (iii) customer commercial financing and (iv) advances to suppliers. We seek to limit our credit risk associated with cash and cash equivalents by placing the investments we make with those instruments with investment-grade ratings following the guidelines of our financial management policy. With respect to trade accounts receivable and customer commercial financing, we seek to limit our credit risk by performing ongoing credit evaluations. All these customers are currently meeting their commitments with us, are operating within the established credit limits that we assign to them and are considered by management to represent an acceptable credit risk level to us. Advances to suppliers are made only to select, long-standing suppliers. We analyze the financial condition of those suppliers on an ongoing basis with a view to limiting credit risk. We may also have credit risk related to the sale of aircraft during the period in which their purchasers are finalizing the financing arrangements for their aircraft purchases from us. In order to try to minimize these risks, we continuously monitor customer credit analyses and work closely with financial institutions to facilitate customer aircraft financing. 134 For further information, see Note 26 to our 2025 audited consolidated financial statements included elsewhere in this annual report.