• Passenger revenue per ASK (PRASK) increased 5.1% year over year or 12.5% stage-length adjusted.
• Passenger traffic (RPKs) increased 13.4% over a capacity increase of 12.2% resulting in a higher load factor of 82.2% compared to a load factor of 81.4% in 1Q17.
• Operating cost per ASK excluding fuel (CASK ex-fuel) increased 0.7% while total CASK increased 3.4% despite the 21% increase in oil prices (WTI) and the 3.2% depreciation of the Brazilian real year over year.
• Financial expenses decreased 35.8% from R$139.3 million to R$89.4 million.
• At the end of 1Q18 our total liquidity¹¹position totaled R$3.4 billion, representing 42.4% of the last twelve months' revenues.
• Azul's operating fleet totaled 120 aircraft at the end of the quarter, representing a net reduction of two aircraft compared to 1Q17.
• TudoAzul recorded a 48% increase in gross billings (ex-Azul points) over 1Q17.
• Azul Cargo Express revenue grew 61% year over year.

To retrieve the full version of this press release visit www.voeazul.com.br/IR.

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.