Azul says in talks with stakeholders about optimizing equity structure

Azul S.A. stated in a message to its local regulator that it seeks to “clarify to its shareholders and the market in general about the misinterpreted news published by Bloomberg on August 28,” according to a translation of the notice. The translation of the notice says: “As previously disclosed in our 2Q24 earnings call on August 12, 2024, our operations were severely impacted in 2024 by several factors, such as: (i) the devaluation of the Brazilian real; (ii) the reduction in our domestic capacity as a result of the floods in Rio Grande do Sul in May and the closure of Porto Alegre Airport, with partial reopening scheduled for October 2024; (iii) the temporary reduction in our international capacity in the first half of the year; and (iv) delays in manufacturers’ deliveries of new aircraft. As a result, Azul developed a new strategic plan, aiming at a general improvement of its structure capital and liquidity position. The Company is in active negotiations with its main stakeholders to optimize the equity structure agreed in last year’s capital optimization plan. Overall, stakeholders are showing support and negotiations are moving towards better results for all parties. As we have consistently demonstrated, Azul has always favors friendly and commercial solutions that maximize value for all its stakeholders. Additionally, as we also reported on our earnings call, we have additional capacity fundraising using Azul Cargo as primary guarantee in the amount of up to US$800 million. Other sources of liquidity are also available. Yesterday, the Brazilian Congress approved the bill which allows airlines to access recurring credit lines supported by the Fund National Civil Aviation Authority (FNAC). Furthermore, as already announced, the Company is holding discussions with Abra to explore possible partnerships or business combinations related to GOL. To date, she has not celebrated or formalized an agreement, binding or not.”