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The phrase "are happy" is correct and usable in written English.
It can be used to express a state of contentment or joy, typically in the present tense.
Example: "The children are happy because they received new toys for their birthday."
Alternatives: "feel joyful" or "are delighted".
Dictionary
are happy
adjective
Experiencing the effect of favourable fortune; having the feeling arising from the consciousness of well-being or of enjoyment; enjoying good of any kind, as peace, tranquillity, comfort; contented; joyous.
Exact(60)
So we are happy.
We are happy here".
We are happy.
You are Happy Buddha".
"Now they are happy".
The men are happy.
"Yes, we are happy.
So they are happy.
* All endings are happy.
Some fans are happy.
So New Yorkers are happy, Chinese manufacturers are happy, retailers are happy, vendors are happy.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com