Azul reduces total debt

Azul (B3: AZUL4, NYSE: AZUL) has sold ten ATR 72-600 aircraft to Nordic Aviation Capital (“NAC”) resulting in a total debt reduction of approximately R 325 million, the company said.

Five aircraft are expected to leave the fleet by the end of 2017 and the remaining aircraft are expected to leave the fleet early 2018. The sale agreement with NAC also includes the delivery of three new ATR 72-600 aircraft under operating leases in 2017.

The sale of the ten ATRs was already included in Azul´s 2017 and 2018 fleet plan of having 122 and 128 operating aircraft by the end each year, respectively. In addition, the company expects to grow 11% to 13% in terms of ASKs in 2017.

Azul, the largest airline in Brazil by number of cities served, offers 755 daily flights to 104 destinations. With a fleet of 118 aircraft and more than 10,000 crewmembers, the company has a network of 197 non-stop routes as of September 30, 2017. For more information visit www.voeazul.com.br/ir.

NAC is the industry´s regional aircraft lessor serving over 70 airline customers in 49 countries. The company provides aircraft to well-established carriers such as Azul, Aeromexico, Air Canada, British Airways, LOT, Garuda, Flybe, HOP!, air Baltic and Olympic Air as well as major regional carriers including Air Nostrum, Widerøe, Binter and Air KBZ. NAC´s current fleet of over 400 owned and managed aircraft includes ATR 42, ATR 72, Bombardier Dash 8, CRJ900, CRJ1000, CS300, E170, E175, E190 and E195. In addition, the group has circa 50 aircraft on firm order. NAC is the largest owner and lessor of both ATR and Bombardier aircraft in the world.