Azul Statement on the LATAM Codeshare and Potential Industry Consolidation

Rhea-AI Summary

Azul, Brazil's largest airline, announced updates regarding its codeshare with LATAM and potential industry consolidation. The company recognizes consolidation as vital for post-pandemic recovery and is actively exploring opportunities in the region after hiring financial advisors. John Rodgerson, CEO, stated that Azul's strong liquidity and competitive advantages position it favorably in this process. The termination of the codeshare by LATAM reflects this strategic direction. Azul will continue to update the market as developments arise.

Positive

• Azul is positioned as a leader in liquidity and network recovery in the post-pandemic landscape.
• The company is actively exploring industry consolidation opportunities, which could enhance its market position.

Negative

• The cancellation of the codeshare with LATAM may indicate potential disruptions in business relationships.

SAO PAULO, May 24, 2021 /PRNewswire/ -- Azul, the largest airline in Brazil in terms of destinations and departures updates the market on its codeshare with LATAM and possible industry consolidation.  Azul believes that consolidation is an important part of the post-pandemic industry response and the Company is in a strong position to drive that consolidation.  The Company has hired advisors and is actively exploring industry consolidation opportunities in the region.

"The codeshare with LATAM was a unique solution in our pandemic response.  We also realized that industry consolidation would be important for the post-pandemic recovery and Azul would be a key part of any such activity.  In the first quarter of 2021 we hired financial advisors and are actively exploring consolidation opportunities.  We believe the cancelation of the codeshare by LATAM is a reaction to that process," says John Rodgerson, CEO of Azul.  "Azul is emerging from this crisis in a leadership position in terms of liquidity, network recovery and competitive advantages.  Our plans are unchanged and I am confident that we are in the best position to pursue strategic alternatives at this point in time," says Rodgerson.

Azul will keep the market update of any developments.

About Azul
Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of flight departures and cities served, offers over 700 daily flights to more than 110 destinations. With an operating fleet of approximately 150 aircraft and more than 12,400 crewmembers. In 2020, Azul was awarded best airline in Latin America by TripAdvisor Travelers' Choice and also best regional carrier in South America for the ninth consecutive time by Skytrax. Additionally, in 2019, Azul ranked among the top ten most on–time low-cost carriers in the world, according to OAG. For more information visit www.voeazul.com.br/ir.

Contact:
Media Relations
Tel: +55 11 4831 1245
imprensa@voeazul.com.br

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SOURCE Azul S.A.

FAQ

What is the latest update on Azul's codeshare with LATAM?

Azul announced the termination of the codeshare with LATAM, viewing it as a part of a strategy towards industry consolidation.

How is Azul planning to respond to post-pandemic industry challenges?

Azul is exploring consolidation opportunities and believes it is in a strong position to drive these efforts.

Who is leading the strategic planning at Azul regarding industry consolidation?

CEO John Rodgerson is overseeing Azul's strategy to navigate industry consolidation.

What does Azul aim to achieve with potential consolidations?

Azul aims to strengthen its market position and enhance its competitive advantages through potential consolidations.

When was Azul's announcement regarding LATAM and industry consolidation made?

The announcement was made on May 24, 2021.