São Paulo, August 2^nd, 2021 – Azul S.A. (B3: AZUL4, NYSE: AZUL) the largest airline in Brazil by number of cities served and departures, updates the market on its plans for a strategic partnership with Lilium GmbH (“Lilium”), to build an exclusive electric vertical take-off and landing (“eVTOL”) network in Brazil. This potential commercial arrangement has a total value of up to US$1 billion and includes a fleet of 220 Lilium eVTOL aircraft expected to start operating in 2025. This strategic alliance and aircraft order remains subject to the parties finalizing commercial terms and definitive documentation relating thereto.

Through this potential air network, Azul intends to increase connectivity in Brazil with an increasingly innovative plan. The announcement follows Azul’s strategy to accelerate its ESG commitments by leveraging, in an unprecedented way, economic and social development in Brazil through a 100% electric airplane model, with zero carbon emissions.

Azul has the most unique and sustainable business model in Brazil. Our brand presence, our unique route network, and our powerful loyalty program give us the tools to create the markets and demand for the Lilium Jet network in Brazil. As we did in the Brazilian domestic market over the last 13 years, we look forward to again, now with the Lilium Jet, creating a whole new market in the years to come”, says John Rodgerson, Azul’s CEO.

Azul will keep the market updated of any developments.