Azul Reports Preliminary Impact of Truck Driver’s Strike

Azul S.A., "Azul”, (B3: AZUL4) (NYSE: AZUL), the largest airline in Brazil by number of cities served, announces today the preliminary operational and financial impact of Brazil’s truck drivers’ strike that began on May 21^st.

• Operating results are currently forecast to have a one-time impact from the strike of approximately R$ 50 million, to be recognized in full in the second quarter of 2018.

• The strike led to 169 operational flight cancellations out of a total of 2,637 flights between May 24 and May 27 due to jet fuel shortages at several airports supplied by fuel trucks. The Company also proactively reduced flight schedules by an additional 523 flights from May 28 to June 3 in response to higher than average customer cancelation and no-show rates.

• Azul implemented several initiatives to minimize the impact of the strikes, including fuel tankering operations and technical refueling stops, waiving cancellation and change fees for affected flights, and implementing shuttle services to help crewmembers reach their work stations.

According to John Rodgerson, Azul’s CEO, "our crewmembers have been working very hard to accommodate our customers over the past few days and we remain committed to offering the best travel experience possible. Our network strength, diversified fleet and strong corporate culture were key to help minimize the short-term impact of this unexpected event. We remain confident in our business strategy and our ability to maximize customer and crewmember satisfaction while delivering superior value to our shareholders.”

Azul will hold a conference call to discuss this investor update on Friday, June 1^st at 11:00 am EST.

Conference Call Details:

Friday, June 1st, 2018
11h00 (EST) | 12h00 (Brasília time)
USA: +1 412 317 6029
Brazil: +55 11 3193 1001 | +55 11 2820 4001
Code: AZUL

Replay:
+55 11 3193-1012 | +55 11 2820-4012
Code for English: 173377#

About Azul

Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of cities served, offers 739 daily flights to 106 destinations. With an operating fleet of 120 aircraft and more than 10,000 crewmembers, the company has a network of 206 non-stop routes as of March 31, 2018. This year, Azul was awarded best airline in Latin America by TripAdvisor Travelers’ Choice and in 2017, the Company was elected best low cost carrier in South America for the seventh consecutive time by Skytrax. Azul also ranked as most on-time airline in Brazil and most on-time low-cost carrier in the Americas in 2017 according to OAG's Punctuality League, the industry's most comprehensive annual ranking of on-time performance. For more information visit www.voeazul.com.br/ir.

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