São Paulo, October 7, 2024 – Azul S.A., “Azul” (B3: AZUL4, NYSE: AZUL) announces today it has successfully reached commercial agreements with lessors and OEMs that hold approximately 92% of the existing equity issuance obligations, subject to certain conditions and applicable corporate approvals.

These agreements represent a significant part of a comprehensive plan designed to strengthen Azul’s cash generation and improve its capital structure going forward. Under these agreements, lessors and OEMs are agreeing to eliminate their pro-rata share of the current balance of the equity issuance obligations totaling approximately R$3 billion and, in exchange, will receive up to 100 million new preferred shares of Azul (AZUL4) in a one-time issuance.

This negotiation is contingent on amendments to certain other obligations, including the raising of additional financing and is subject to finalizing definitive binding documentation with lessors and OEMs.

Negotiations continue with the holders of the remaining 8% of the equity issuance obligations, as well as with other stakeholders, and Azul will keep the market updated of any further developments. 

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