[8] The company's business model is to stimulate demand by providing frequent and affordable air service to underserved markets throughout Brazil.

[10] It was established on 5 May 2008 by Brazilian-born David Neeleman (founder of American low-cost airline JetBlue), with a fleet of 76 Embraer 195 jets.

Azul inaugurated services in the Brazilian domestic market on 15 December 2008 between Campinas and 3 cities: Rio de Janeiro, Salvador, and Porto Alegre.

On 6 March 2013 Brazilian authorities gave the final approval for the merger with a few restrictions related to code-sharing with TAM Airlines and slot use at Rio de Janeiro–Santos Dumont Airport.

[18][19] Since 2015, Azul is also an equal partner in a Brazilian–Portuguese joint venture that was the majority owner of TAP Air Portugal, another Star Alliance member, before its buy-out by the Portuguese state.

[22] On 24 November 2015, it was announced that the Chinese HNA Group, owner of Hainan Airlines, would invest US$450 million in Azul, becoming its largest single shareholder.