Azul Launches Branded Fares for Customers Traveling Without Checked Baggage

Azul S.A. (B3:AZUL4) 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.

Branded fares "Azul" and "Mais Azul"

Customers choosing to purchase this new lower fare dubbed "Azul" will have the following baggage allowances:

• Hand luggage allowance of 10kg per customer
• 0kg checked-baggage allowance per customer. If the customer changes their mind, checked baggage allowance of 23kg per customer can be purchased at any time prior to departure for an additional fee of R$30
• Customers with checked baggage weighing more than 23kg per customer will be subject to the same excess baggage fees applicable today
• Customers will receive 100% of TudoAzul points accrual

Customers choosing to purchase the new branded fare now called "Mais Azul" will continue to enjoy the same baggage allowances that are available today:

• Hand luggage allowance of 10kg per customer
• 23kg per customer of checked baggage allowance
• Customers with checked baggage weighing more than 23kg per customer will be subject to the same excess baggage fees applicable today
• Customers will receive 100% of TudoAzul points accrual

These two branded fares "Azul" and "Mais Azul" will replace the current branded fares of "Promo" and "Flex". All domestic markets across the network will have the fare "Mais Azul" available. The lower fares "Azul" will be rolled out across the network in a deliberate and systematic manner to allow for a smooth transition for our crewmembers and customers.

About Azul

Azul (((B3:AZUL4, NYSE:AZUL), the largest airline in Brazil by number of cities served, offers 792 daily flights to 102 destinations. With a fleet of 121 aircraft and more than 10,000 crewmembers, the company has a network of 201 non-stop routes as of March 31, 2017. Among other awards, Azul was named third best airline in the world by TripAdvisor Travelers' Choice in 2017, best low cost carrier in South America for the sixth consecutive time by Skytrax in 2016, and the world's most on-time low-cost airline in 2015 by the Official Airline Guide (OAG). For more information visit www.voeazul.com.br/ir.

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