São Paulo, October 06, 2020 – Azul S.A., “Azul” (B3: AZUL4, NYSE: AZUL), announces today that as of September 30th, 2020, its liquidity position, including cash and cash equivalents, short-term investments, and accounts receivables, increased to R$2.3 billion compared to its liquidity position of R$ 2.25 billion at the end of the previous quarter. These figures are preliminary and unaudited.

Azul had originally forecasted a cash burn of approximately R$ 3.0 million per day for the second half of the year, and ended up with a cash increase of approximately R$ 0.7 million per day over the third quarter. Excluding severance payments, cash grew by R$ 1.5 million per day. This better cash performance was mostly due to the successful execution of our management plan, including effective negotiations with its stakeholders, as well as the faster than expected ramp-up in demand.

For the fourth quarter of 2020, the Company expects an average cash burn of approximately R$ 2.5 million per day with no significant debt amortization as a result of ongoing negotiations with its financial partners. Over the last six months the Company maintained its cash position without raising additional capital, and internal projections show sufficient liquidity for over 30 months assuming no new capital raise. Azul continues to evaluate alternatives to raise capital to further strengthen its balance sheet and take advantage of market opportunities.

“The combination of a leaner and more efficient cost structure with the better than expected increase in demand indicates that we are on the right track to restore our position as one of the most profitable airlines in the region. I would like to thank our crewmembers and partners for all their support during this process,” said Alex Malfitani, Azul’s CFO.