São Paulo, May 6th, 2021 - Azul S.A., “Azul” (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of cities served and departures, announces today its expected results for cargo revenue and immediate liquidity as of December 2021, and EBITDA for 2022.

While we are closely monitoring the impact of COVID-19 on our 2021 and 2022 results and the challenges continue, Brazil has significantly ramped up its vaccine efforts, we remain confident in our recovery path.

Based on the best information available, we describe our expected results, as follows:

  1. Azul expects to double Azul Cargo revenue by the end of 2021, compared to 2019, reaching around R$1.0 billion in revenues.

Azul has the largest domestic network, combined with the most flexible fleet to serve all Brazil and the engines to drive logistics growth. Azul provides a unique and vast array of logistics air services for all customers, in a short delivery times at competitive prices. As a result, we expect to double our revenue in 2021, compared to 2019, specially driven by the e-commerce growth in Brazil.

  1. Azul expects to end 2021 with immediate liquidity, including cash and cash equivalents, short-term investments and accounts receivable at approximately R$3.0 billion, keeping the same levels as of March 2021.

While the pandemic challenges continue, Brazil has significantly ramped up its vaccine efforts, now averaging one million doses applied per day. According to our estimates, we expect an increase in demand by the second semester of 2021, generating cash for the operation to be offset by cash outflows to support the operations and investing on the recovery. These premises will allow Azul to keep the same level of immediate liquidity, remaining strong to face the pent-up demand in the upcoming quarters.

  1. We estimate 2022 EBITDA to surpass the EBITDA generated in 2019 (R$3.6 billion).

While domestic demand recovery will continue during 2022 main driven by corporate business travel coming back, we also expect a recovery in the international demand, as a result of the re-opening of the cross-borders around the world, generating more passenger revenue. Combined with the increase in our cargo business year over year and all initiatives to reduce cost, we expect to generate more EBITDA than 2019.

These preliminary estimates exclude non-recurring events and additional impacts from the pandemic.

Expected Results
Cargo revenue – FY2021~R$1 billion
Immediate liquidity – 4Q21>R$3 billion