Azul Announces Exit of 12 Embraer E-195 E1s

Embraer E-195 E1 fleet will be reduced by 40% by end of 2023 compared to 2019

São Paulo, September 20, 2022 – Azul S.A., “Azul”, (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil in number of flights and cities served, announces today the exit of 12 aircraft Embraer E-195 E1s from its current passenger operating fleet until the end of 2023. Azul’s passenger operating E1 fleet will be reduced by 22 aircraft compared to 2019, which represents a 40% reduction and a significant acceleration in its fleet transformation plan.

The exit of 12 aircraft Embraer E-195 E1s is related to: (i) a recently negotiated sale of 5 aircraft to Azorra Aviation, reducing debt; (ii) the end of lease of 4 aircraft; and (iii) the conversion of 3 aircraft to Class F freighter. The chart below presents the expected Embraer E-195 E1s fleet for the end of 2022 and 2023:

“This announcement demonstrates our ability to accelerate the phase-out of previous-generation Embraer E1s. The exit of the E1s gives us the opportunity to advance the delivery of next-generation E2, further expanding our margins given the E2’s 26% lower seat cost compared to the E1,” said Alex Malfitani, Azul’s CFO. “This also confirms our position as the airline with the youngest, most fuel-efficient fleet in the region and moves us one step further in our commitment to reach carbon neutrality by 2045,” added Alex.