Azul Announces Second Quarter Liquidity Position and Cash Burn Guidance

São Paulo, August 02, 2020 – Azul S.A., “Azul” (B3: AZUL4, NYSE: AZUL), announces today that as of June 30th, 2020, its preliminary liquidity position, including cash and cash equivalents, short-term investments, and accounts receivables, totaled R$2.3 billion compared to R$2.2 billion on March 31st and to a previous forecast of R$ 2.0 billion. Azul had originally forecasted a daily cash burn between R$3 million and R$4 million in May and June, but was actually able to increase its cash position in the same period.

For the remainder of 2020 the Company expects an average daily cash burn of approximately R$3 million with no scheduled debt amortization as a result of ongoing negotiations with its financial partners.  In addition, thanks to the intensive efforts made by the Company in partnering with its crewmembers, financial partners, and lessors, as well as the faster than expected ramp-up in capacity and demand, the Company’s projections show sufficient liquidity through the end of 2021 assuming no new capital raise. However, since there is still uncertainty in the recovery, the Company plans to raise additional capital in due time to increase its liquidity cushion.

“Thanks to the support of our partners and the efforts of our crewmembers, we were able to increase the Company’s cash position during the second quarter of the year, which was without a doubt the most challenging in aviation history.  The Azul recovery plan has yielded better than expected results.  We have satisfied our short-term liquidity needs, and we are confident in our ability to navigate this crisis and restore our position as one of the most profitable airlines in the region,” said Alex Malfitani, Azul’s CFO.