Azul Announces Sale of Equity Stake to Portuguese Government

Azul S.A. ("Azul") announces today that it has reached an agreement with the Portuguese Government that will enable a vital capital injection into TAP SGPS ("TAP"). As part of the agreement, Azul agreed to sell its current indirect participation representing 6% in TAP for approximately R$65 million and to withdraw conversion rights of its €90 million secured 2026 senior bond. In addition, all other contractual conditions remain reinforced, including its status of senior creditor, 7.5% annual interest rate, and collateral including TAP's loyalty program. The principal amount plus accrued interest of the bond corresponds to approximately R$680 million. The transaction remains subject to Azul's required corporate approvals, including shareholders' approval at an extraordinary shareholders meeting.