Recent Updates — AZLUD

Azul S.A. entered into a financing transaction of up to R$2.0 billion, guaranteed by the Brazilian Federal Government through ABGF and funded via the Export Guarantee Fund (FGE). The net proceeds are designated exclusively for purchasing aviation fuel for scheduled domestic operations. This facility strengthens the company's liquidity position and provides financial flexibility amid volatile fuel prices. Azul S.A. is the largest airline in Brazil by number of cities served, operating approximately 800 daily flights to more than 130 destinations.

Brazil's antitrust regulator, CADE, has unanimously approved American Airlines' US$100 million investment in Azul S.A. The capital will be raised through the exercise of subscription warrants, resulting in American holding approximately 8% of Azul's total and voting capital. This regulatory clearance allows for the implementation of commercial agreements between the two carriers. Azul operates as Brazil's largest airline by cities served, flying over 130 destinations.

Azul S.A. executed a definitive loan agreement with the Brazilian Development Bank (BNDES) under the National Civil Aviation Fund (FNAC), securing access to up to R$2.66 billion in long-term financing. The company drew the first tranche of approximately R$1.3 billion on September 29, 2026, with the remaining R$1.3 billion expected in Q4 2026. As part of the transaction structure, Azul is prepaying an existing higher-cost obligation of approximately R$400 million. The financing has a term of up to five years and strengthens the company's liquidity position while supporting its liability-management initiatives. Azul S.A. operates as Brazil's largest airline by number of cities served, offering flights to over 130 destinations.