Azul Performance

Azul Reports May 2018 Traffic

Azul

Azul S.A., (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of cities served, announces today its preliminary traffic results for May 2018.

Consolidated passenger traffic (RPKs) increased 14.0% compared to May 2017 on a capacity increase (ASKs) of 13.5%. As a result, load factor was 80.1%, 0.3 percentage points higher than in the same period last year.

Domestic passenger traffic increased 1.5% on a 2.6% increase in capacity resulting in a load factor of 77.1%, 0.9 percentage points lower than May 2017. This reduction was due to the truck driver's strike in Brazil, which resulted in a higher number of reservations canceled and an increase in no-show rates between May 24th and May 31st".

Year to date Azul continues to be the most on-time airline in Brazil with 91% of flights departing within 15 minutes of departure time, according to FlightStats.

 May-18

 May-17

  % ?

 YTD 2018

 YTD 2017

  % ?

Total

RPK (million)

1.839

1.614

14,0%

9.604

8.409

14,2%

ASK (million)

2.295

2.022

13,5%

11.762

10.362

13,5%

Load factor

80,1%

79,8%

+0,3 p.p.

81,7%

81,1%

+0,6 p.p.

Domestic

RPK (million)

1.345

1.325

1,5%

7.075

6.905

2,5%

ASK (million)

1.744

1.700

2,6%

8.862

8.713

1,7%

Load factor

77,1%

78,0%

-0,9 p.p.

79,8%

79,2%

+0,6 p.p.

International

RPK (million)

494

288

71,4%

2.529

1.504

68,1%

ASK (million)

552

322

71,5%

2.900

1.649

75,9%

Load factor

89,5%

89,6%

-0,1 p.p.

87,2%

91,2%

-4,0 p.p.

About Azul

Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of cities served, offers 739 daily flights to 106 destinations. With an operating fleet of 120 aircraft and more than 10,000 crewmembers, the company has a network of 206 non-stop routes as of March 31, 2018. This year, Azul was awarded best airline in Latin America by TripAdvisor Travelers' Choice and in 2017, the Company was elected best low cost carrier in South America for the seventh consecutive time by Skytrax. Azul also ranked as most on-time airline in Brazil and most on-time low-cost carrier in the Americas in 2017 according to OAG's Punctuality League, the industry's most comprehensive annual ranking of on-time performance. For more information visit www.voeazul.com.br/ir.

Glossary

Revenue Passenger Kilometers (RPK)

One-fare paying passenger transported one kilometer. RPK is calculated by multiplying the number of revenue passengers by the number of kilometers flown.

Available Seat Kilometers (ASK)

Number of aircraft seats multiplied by the number of kilometers flown.

Contact

Investor Relations

Tel: +55 11 4831 2880

invest@voeazul.com.br

Media Relations

Tel: +55 11 4831 1245

imprensa@voeazul.com.br

This traffic release includes estimates and forward-looking statements within the meaning of the U.S. federal securities laws. These estimates and forward-looking statements are based mainly on our current expectations and estimates of future events and trends that affect or may affect our business, financial condition, results of operations, cash flow, liquidity, prospects and the trading price of our preferred shares, including in the form of ADSs. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to many significant risks, uncertainties and assumptions and are made in light of information currently available to us. In addition, in this release, the words "may," "will," "estimate," "anticipate," "intend," "expect," "should" and similar words are intended to identify forward-looking statements. You should not place undue reliance on such statements, which speak only as of the date they were made. Azul is not under the obligation to update publicly or to revise any forward-looking statements after we distribute this press release because of new information, future events or other factors.  Our independent public auditors have neither examined nor compiled the forward-looking statements and, accordingly, do not provide any assurance with respect to such statements.  In light of the risks and uncertainties described above, the future events and circumstances discussed in this release might not occur and are not guarantees of future performance. Because of these uncertainties, you should not make any investment decision based upon these estimates and forward-looking statements.

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SOURCE Azul S.A.



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