Slide 1: Contents
Contents Declaration of the officers on the interim condensed individual and consolidated financial statements Declaration of the officers on the independent auditor’s report Summary report of the statutory audit committee Independent auditor report Statements of financial position Statements of ope
Slide 2: Statements of financial position
The accompanying notes are an integral part of these interim condensed individual and consolidated financial statements.
Slide 3: Statements of operations
The accompanying notes are an integral part of these interim condensed individual and consolidated financial statements.
Slide 4: Statements of comprehensive income
The accompanying notes are an integral part of these interim condensed individual and consolidated financial statements.
Slide 5: Statements of changes in equity
The accompanying notes are an integral part of these interim condensed individual and consolidated financial statements.
Slide 6: Statements of changes in equity (continued)
(a) Advance for future capital increase (b) Refers to the receipt of the exercise of share options and the vesting of share-based compensation plans. The accompanying notes are an integral part of these interim condensed individual and consolidated financial statements.
Slide 7: Statements of cash flows
The accompanying notes are an integral part of these interim condensed individual and consolidated financial statements .
Slide 8: Statements of value added
(a) Not including INSS in the amount of R$605 in the parent company R$106,041 in the consolidated, as it is in the federal tax line. (b) Includes deferred income tax and social contribution accounted for in the parent company. The accompanying notes are an integral part of these interim condensed in
Slide 9: Companies based in Brazil and other countries
100 Ill Companies based in Brazil Il Companias based in other counties J 0m _ ae 7 — (ee) [se eas os FE} ‘oo.
Slide 10: 1.2 Seasonality
1.2 Seasonality The Company’s operating revenues depend substantially on the general volume of passenger and cargo traffic, which is subject to seasonal changes. Our passenger revenues are generally higher during the summer and winter holidays, in January and July respectively, and in the last two w
Slide 11: Basis of preparation: historical cost and fair value items
The interim condensed individual and consolidated financial statements have been prepared based on the historical cost, except for the items significant: Fair value: · Short-term investments classified as cash and cash equivalents; · Short-term investments; · Derivative financial instruments; and ·
Slide 12: Long-term investments
(a) Investment in U.S. dollar . 6. LONG-TERM INVESTMENTS
Slide 13: Trade receivables
Consolidated March 31, December 31, Description 2024 2023 Local currency Credit card companies 642,978 498,609 Cargo and travel agencies 312,552 282,654 Travel package financing entities 8,397 29,203 Loyalty program partners 153,773 114,932 Others 32,831 40,121 Total local currency 1,150,531 965,519
Slide 14: Receivables received and expected losses
Until May 3, 2024, of the total amount due within, R$41,423 was received. The movement of expected losses is presented below:
Slide 15: Movement of expected credit losses
Consolidated March 31, March,34 Description 2024 2023 Balances at the beginning the period (27,234) (24,084) Additions (9,594) (1,955) Reversal 7973 \Write-off of uncollectible amounts 6 Balances at the end of the period (28,855) (26,033)
Slide 16: Sublease receivables
Consolidated March 31, December 31, Description 2024 2023 2024 11,909 15,386 2025 15,878 15,386 2026 4,129 4,001 Gross sublease 31,916 34,773 Accrued interest (3,262) (3,971) Net sublease 28,654 30,802 a Ls Current 15,057 14,592 Noncunera 13.597 16.210
Slide 17: Inventories
Consolidated March 31, December 31, Description 2024 2023 Maintenance materials and parts 975,426 825,499 Flight attendance, uniforms and others 22,881 21,367 Provision for losses (54,970) (47,658) Total net 943,337 799,208
Slide 18: Security deposits and maintenance reserves
The movement of security deposits and maintenance reserves is as follows:
Slide 19: Security deposits and maintenance reserves movement
Parent company Consolidated ‘Security ‘Security _ Maintenance Description deposits deposits _reserves Total At December 31, 2023 7,872 418,537 1,874,958 2,293,495 Additions 2 45,074 133,740 178,814 Transfers (70) (23,990) (44,504) (68,494) Provision inclusions and (reversals), net - . (906) (906) Us
Slide 20: Provision for losses movement
Consolidated March 31, March 34, Description 2024 2023 Balances at the beginning of the period (278,362) (446,342) Inclusions (12,578) (18,888) Reversals 10,139 2,337 Use by the lessor 1,533 13,908 Foreign currency exchange (8,926) 14,991 Balances at the end of the period (288,184) (436,996)
Slide 21: Recoverable taxes
Parent company Consolidated March 31, December 31, March 31, December 31, Description 2024 2023 2024 2023 PIS and COFINS = - 65,263 73,029 Taxes withheld 74 67 122,756 121,216 IRPJ and CSLL 3,230 4917 3,290 8315 IcMs = - 17,478 19,940 Provision for losses 2 - (4,293) (3,875) Others 3 z 826 808 3,304
Slide 22: Deferred taxes and tax losses
The Company has tax losses that are available indefinitely for offset against 30% of future taxable profits on which deferred tax assets were not created as it is not probable that future taxable profits will be available for the Company to use the benefits thereof, as below:
Slide 23: 14. Investments
14. INVESTMENTS 14.1 Direct investments
Slide 24: Direct investments
(a) Considering indirect investments, the Company's share totals 99.8%.
Slide 25: Investments movement
Description ALAB Intelazul Total December 31, 2023 (20,130,955) 760,782 _(19,370,173) Equity (1,084,149) (742) (1,084,891) Share-based payment 12,241 = 12,241 March 31, 2024 (21,202,863) 760,040 __ (20,442,823) Investments 760,040 Provision for loss on investment (21,202,863)
Slide 26: Property and equipment
(a) Includes aircraft, engines, simulators and equipment flight. During the three months ended March 31, 2024, the Company carried out “sale and leaseback” transactions for an engine, where the revenue, net of sales costs, corresponds to a gain of R$27,441 (R$0 on March 31 2023) and is recognized un
Slide 27: 17. Intangible assets
(a) Includes aircraft, engines and simulators. 17. INTANGIBLE ASSETS
Slide 28: Intangible assets
Consolidated Weighted average rate December 31, March 31, Description (pa) 2023 Acquisitions __Write-offs 2024 Cost Goodwill 901,417 : - 901,417 Siots © 126,547 : = 126547 Software 776311 66,786 (26,185) _ 816,912 1,804,275 66,786 (26,185) 7,844,876 Amortization Software 26% (341,028) (50,827) 26,09
Slide 29: Loans and financing: parent company
Parent company ‘Average: nominal rate December31, Funding March 31, Description, pa. Effective rate__Maturity 2023 (eosts 2024 In local currency - RS Debentures CDI+ 6.0% 19.3% Mar-27 = 245554 245,554 Total in RS 2 2a Current - Non-current 245,554
Slide 30: Loans and financing: consolidated
Consolidated Average Foreign nominal rate December31, Funding Paymentof-Paymentof__—interest_«=—currency Amortized March 34, Description ba Effective rate Maturity 2023 (costs __principal_interest_incurred_exchange cost 2024 In foreign currency — US$ ‘Senior notes — 2024 59% 63% 0c. 24 330,099 = % 7
Slide 31: 18.2 New captures
18.2 New captures 18.2.1 Senior notes 2028 In February 2024, the subsidiary Azul Secured issued additional notes in the principal amount of R$740,585 (equivalent to US$148,700), with funding costs of R$13,289. These notes were issued to qualified institutional investors and there was no change in pa
Slide 32: Leases
Consolidated Parent company March 31, December 31, March 31, December 31, Description 2024 2023 2024 2023, Leases - = 12,181,682 12,455,827 Leases - Notes = - 1072622 1,030,845 Leases - Equity 062,779 1,659,739 2,062,779 ___4,659,739 062,79 1,659,739 15,317,083 15,146,411, Current liabilities 428,63
Slide 33: Leases – Notes
(a) Includes aircraft, engines and simulators. 19.2Leases – Notes
Slide 34: Leases – Notes movement
Consolidated Foreign Average Weighted December 31, Interest currency March 31, Description remaining term _averagerate___2023 Payments incurred _exchange 2024 Financing with lessors - Notes 63 14.8% 1,030,845 (26,824) 36,057 32,544 1,072,622 Total 4,030,845 (26,824) 36,057 32,544 1,072,622 Current 1
Slide 35: Transfer balances classified as Leases
(a) Transfer balances are classified as “Leases”.
Slide 36: 19.5 Schedule of amortization of leases – Notes
19.5Schedule of amortization of leases – Notes
Slide 37: 19.6 Schedule of amortization of leases – Equity
19.6Schedule of amortization of leases – Equity
Slide 38: Minimum lease payments
Parent company March 31, December 31, Description 2024 2023 2024 243,445 236,897 2025 874,016 726,247 2026 874,016 726,247 2027 630,572 490,348 Minimum lease payments 622,049 2,178,739 Financial charges Present value of minimum lease payments Current Non-current (659,270) (619,000) 2,062,779 7,559,7
Slide 39: Convertible debt schedule of amortization
(a) Does not consider the conversion right. The balance includes the right to convert the debt into Company shares in the amount of R$337,202 (R$488,775 as of December 31, 2023). 20.1 Schedule of amortization
Slide 40: Convertible debt maturities
Parent Company and Consolidated March 31, December 31, Description 2024 2023 2024 63,218 25,807 2028 1,070,272 1,175,803 4,133,490, 4,201,610 Current 63,218 25,807 Non-current 1,070,272 1,175,803
Slide 41: Accounts payable
Parent company Consolidated March 31, December 31, March31, December 31, Description 2024 2023 2024 2023 Accounts payable 6,021 10,651 3,093,844 3,077,225 Accounts payable - Notes = - 414,744 401,702 Accounts payable - Convertible to equity 127,533 119,841 127,533 119,841 133,554 130,492 3,636,121 3
Slide 42: Balance recorded in the parent company
(a) Balance recorded in the parent company.
Slide 43: 25. Air traffic liability and loyalty program
25. AIR TRAFFIC LIABILITY AND LOYALTY PROGRAM
Slide 44: 26. Salaries and benefits
(a) Does not consider the loyalty program. 26. SALARIES AND BENEFITS
Slide 45: 28. Provisions
28. PROVISIONS 28.1 Composition of provisions
Slide 46: Provisions notes
(a) Nominal discount rate 10.7% p.a. (10.7% p.a. as of December 31, 2023). (b) Considers provision for civil risks in the amount of R$25 in the parent company.
Slide 47: 29. Related-party transactions
29. RELATED-PARTY TRANSACTIONS 29.1 Transactions between companies Observing accounting standards, such transactions were duly eliminated for consolidation purposes:
Slide 48: 29.2 Compensation of key management personnel
29.2 Compensation of key management personnel The Company´s employees are entitled to profit sharing based on certain goals agreed annually. In turn, executives are entitled to bonus based on statutory provisions proposed by the Board of Directors and approved by the shareholders. The amount of prof
Slide 49: Stock-based compensation, guarantees and ticket sales contract
Stock-based compensation plan, considers the option plan, RSU and phantom shares. Such plans are expected to be settled in up to eight years and, therefore, and does not represent a cash outflow. 29.3 Guarantees and pledges granted by the Parent Company The Company has granted guarantees on rental p
Slide 50: 29.6 Lilium and 29.7 Azorra
29.6 Lilium In August 2021, the Company announced plans to make a strategic partnership with Lilium GmbH, a wholly owned subsidiary of Lilium N.V. (“Lilium), which has ultimately become a related party as the Company’s Board of Directors’ Chairman was elected independent member of Lilium’s Board of
Slide 51: Azorra related-party balances
Consolidated March 31, December 31, Creditor Debtor ‘Type of operation 2024 2023 ‘ALAB ‘Azorra ‘Security deposits 23,198 4,643, Azorra ALAB Leases (310,156) (302,947) Azorra ‘Azul Investments Leases - Notes (77.573) (74,572) Azorra Azul Leases - Convertible to equity (109,608) (102,683) March 31, Ma
Slide 52: Share capital and voting rights
(a) Advance for future capital increase. As established in the Company's bylaws, each common share entitles you to 1 (one) vote. Preferred shares of any class do not confer voting rights, however, they provide their holders with rights that were disclosed in detail in the financial statements for th
Slide 53: 30.2 Treasury shares
This refers to Trip Participações S.A., Trip Investimentos Ltda. and Rio Novo Locações Ltda. (a) 30.2 Treasury shares
Slide 54: Share buyback plan
In November 2022, the buyback plan for 1,300,000 preferred shares was approved, maturing in 18 months, in order to keep them in treasury to later meet the obligations of the RSU plan. Until March 31, 2024, within said plan, the Company reacquired 1,061,868 shares.
Slide 55: Loss per share
(a) This refers to the participation in the value of the Company's total equity, calculated as if all 928,965,058 common shares had been converted into 12,386,201 preferred shares at the conversion ratio of 75 common shares for each preferred share. (b) This refers to the participation in the value
Slide 56: Share-based compensation plans movement
Parent company and Consolidated Number of shares Phantom Description Option pian RSU shares Total At December 31, 2023 20,521,684 1,544,065 246,930___ 22,312,679 Exercised (3,000) - (18,17) (21,177) Canceled (9,056) (24,638) S (33,694) At March 31, 2024 20,509,628 1,519,427 228,753 22,257,808
Slide 57: Share-based compensation expenses
The expenses of share-based compensation plans are shown below:
Slide 58: 32.1.2 Restricted stock option plan
32.1.2 Restricted stock option plan
Slide 59: Stock option grants
Remaining term Fair value of of the vesting Purchasing Dateof Exercise rate share period period up to. Total Total not grant per tranche (in RS) (in years) (years) granted exercised ‘June 19, 2020 25.0% 21.80 02 40 1,382,582 250,396 July 7, 2021 25.0% 4267 12 40 300,000 116,903 July 7, 2022 25.0% 11
Slide 60: Revenue and PIS/COFINS rates
(a) As of January 1, 2023, the PIS and COFINS rates on revenues arising from regular passenger air transport activities were reduced to zero, in accordance with Law 14,592/2023. Revenues by geographical location are as follows:
Slide 61: Revenues by geographical location
Consolited Three months ended March 31, March 31, Description 2024 2023 Domestic revenue 3,813,313 3,504,946 Foreign revenue 865,099 __ 973,382 Total revenue 4,678,412 4,478,328
Slide 62: Net of PIS and COFINS credits
(a) Net of PIS and COFINS credits in the amount of R$391.
Slide 63: 36. Risk management
36. RISK MANAGEMENT 36.1 Fair value hierarchy of financial instruments The fair value hierarchy of the Company's consolidated financial instruments, as well as the comparison between book value and fair value, are identified below:
Slide 64: Fair value hierarchy: parent company
Parent company Carrying amount Fair value March 31, December 31, March 31, December 31, Description Note_Level 2024 2023 2024 2023 Assets Cash and cash equivalents 5 2 12.014 2,809 12,014 2,809 Liabilities Convertible debt instruments - conversion right B 2 (337,202) (488,775) (337,202) (488,775)
Slide 65: Interest rate risk sensitivity analysis
Financial instruments whose fair value approximates their carrying value, based on established conditions, mainly due to the short maturity period, of these assets and liabilities, were not disclosed. 36.2 Market risks 36.2.1 Interest rate risk 36.2.1.1 Sensitivity analysis As of March 31, 2024, the
Slide 66: LIBOR and aircraft fuel price risk
Assets and liabilities linked to LIBOR are being reviewed and will be updated using alternative published rates. The Company estimates that the updated cash flows will be economically equivalent to the original ones. 36.2.2 Aircraft fuel price risk (“QAV”) The price of fuel may vary depending on the
Slide 67: 36.2.3 Foreign exchange risk
36.2.3 Foreign exchange risk The foreign exchange risk arises from the possibility of unfavorable exchange differences to which the Company's cash flows are exposed. The equity exposure to the main variations in exchange rates is shown below:
Slide 68: Foreign exchange exposure: parent company
Parent company Exposure to US$ Exposure to € March 31, December = March 31, December 31, Description 2024 31, 2023 Assets Cash and cash equivalents 730 706 391 388 Deposits 8,052 7,802 - - Related parties 2,207,372 ___ 1,578,332 = = Total assets 2,216,154 __ 1,586,840 391 388 Liabilities Convertible
Slide 69: 36.2.3.1 Sensitivity analysis
36.2.3.1 Sensitivity analysis
Slide 70: Foreign currency sensitivity analysis
Parent company Exposure to USS Exposure to € March 31, March 31, Description Closingrate 2024 Closing rate 2024 Exposed assets (liabilities), net 4.9962 (1,777,140) 5.3979 391 Effect on profit or loss Foreign currency devaluation by -50% 24981 888,570 2.6990 (195) Foreign currency devaluation by -25
Slide 71: 36.5 Capital management
36.5 Capital management The Company seeks capital alternatives in order to satisfy its operational needs, aiming for a capital structure that it considers adequate for the financial costs and the maturity terms of the funding and its guarantees. The Company's Management continually monitors its net
Slide 72: Non-cash transactions
frosenyand “taptard amionanceAaquconctanlnane tunes Rovree coneacatonct Comseetlonat sequsben at Adaonine Areata Lasee nontcene pepsimest_“ninges_“reeaver_curgeesre lng, tse and mnewbent_ “nen scour tee Se eins Ye Consolidated Requiation oF ‘property and Acquistion of Acguicton of Mainenance Compens
Slide 73: 38.2 Letters of credit
38.2 Letters of credit The position of the letters of credit in use by the Company follows, for the following purposes: