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Azul Launches Branded Fares for Customers Traveling Without Checked Baggage

SAO PAULO, May 3, 2017 - Azul S.A. (B3:AZUL4, NYSE:AZUL) announced today that beginning June 1, customers purchasing tickets for travel between Azul’s hub of São Paulo - Viracopos and 14 nonstop destinations have an additional fare option to choose from, which will be called "Azul". To ensure a smooth rollout, these fares will be initially offered in 14 markets before expanding slowly to other routes across the Azul domestic Brazil network.

"The launch of this new fare product marks an important step in Brazilian aviation - allowing customers access to our lowest fares while at the same time taking advantage of the broadest domestic network in Brazil", said David Neeleman, founder and CEO of Azul.

This new fare option is a result of changes approved by the Agência Nacional de Aviação Civil (ANAC, or National Civil Aviation Agency) in December 2016, which provides that airlines in Brazil would no longer be legally required to provide a free checked baggage allowance to passengers. However, a Federal Court in São Paulo issued in March 2017 an injunction against the new regulation, which was recently lifted on April 29. As a result, Brazilian airlines are now free to provide different fares based on checked baggage allowance.

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