Azul Announces its 2019 Outlook

São Paulo, March 15th, 2019 - Azul S.A., (B3: AZUL4)(NYSE: AZUL), the largest airline in Brazil by number of destinations and departures, announces today its outlook for the fiscal year ending December 31, 2019. All data is based on preliminary estimates.

We expect to grow total capacity by 18% to 20% in 2019, consisting of a 16% to 18% increase in domestic ASKs through the replacement of smaller aircraft with A320neos, and a 20% to 25% increase in international capacity mostly related to the introduction of three A330s during the year.

Next generation aircraft represented 30% of our ASKs in 2018 and are expected to represent 40% of our 2019 total capacity.

With the introduction of more seats to our network, we expect CASK to decrease between 1% and 3% year over year. We have a multi-year margin expansion strategy, and we expect to grow our EBIT margin every year over the next few years. Consistently, our EBIT guidance for 2019 will be 18% to 20% compared to a margin of 15.1% for 2018 under IFRS 16.

These preliminary estimates exclude the impact of a potential joint venture with Correios, the potential acquisition of select assets of Avianca Brasil, and non-recurring events.

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