São Paulo, March 12^th, 2020 – Azul S.A., “Azul”, (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of cities and departures, announces today its results for the fourth quarter of 2019 (“4Q19”) and for the full year 2019. The following financial information, unless stated otherwise, is presented in Brazilian reais and in accordance with International Financial Reporting Standards (IFRS).

Financial and Operating Highlights for 4Q19

• Adjusted operating income was R$782.8 million in 4Q19, representing a record margin of 24.1%. Operating margin was 17.8% for the full year, in line with the Company’s guidance and 2.1 percentage points higher than in 2018.
  
• Adjusted EBITDA increased 61.8% to R$1.2 billion, representing a margin of 37.8% in 4Q19, making Azul one of the most profitable airlines in the world. For the full year, adjusted EBITDA increased 34.0% reaching R$ 3.6 billion.
  
• Recurring net income totaled R$436.7 million, compared to R$96.6 million in 4Q18. For the full year, net income came in at R$1.2 billion, compared to R$896.6 million in 2018.
  

¹ Adjusted for non-recurring items totaling R$3.2 billion in 2019 and R$226.3 million in 2018.

² EPS and EPADR adjusted for foreign currency exchange. One ADR equals three preferred shares (PNs).

• RASK increased 1.5% in 4Q19 and 3.4% in the full year compared to the same periods in 2018. Adjusted for stage-length, RASK increased 4.5% in 4Q19.
  
• Passenger traffic grew 31.1% on a capacity increase of 30.5% resulting in a load factor of 83.4%, 0.4 percentage points higher than in 4Q18.
  
• CASK decreased 6.6% in 4Q19 and increased 0.8% in 2019. Excluding the impact of the end of the payroll tax relief, CASK would have decreased 8.9% in 4Q19 and 1.9% in 2019.
  
• At the end of 4Q19, total liquidity position was R$4.3 billion, representing 37% of the last twelve months’ revenues. The Company generated R$270 million in free cash flow during the year.
  
• Azul’s adjusted net debt to EBITDA leverage ratio was 3.3x at the end of the year. Excluding aircraft received during the quarter, leverage would have been 2.7x.
  
• Azul’s passenger operating fleet totaled 140 aircraft at the end of the quarter, including 47 next-generation, which represented 42% of total capacity in 2019.
  
• TudoAzul increased its gross billings ex-Azul 41.0% in 4Q19 and ended the year with 12 million members.
  
• Azul Cargo recorded a revenue growth of 53% in 4Q19 and 45% in the full year compared to the same period in 2018.