Blackrock Scales Back Stake in Brazilian Airline Azul

Blackrock Investment Management has scaled back its investment in Azul Linhas Aéreas Brasileiras, decreasing its stake in the Brazilian airline from 5.061% to 4.716%. This move comes amid Azul’s efforts to reshape its equity structure and enhance its financial standing, according to a recent report by Reuters.

The reduction in Blackrock’s stake follows a period of heightened acquisition activity by the US investment fund. In July, ch-aviation noted that Blackrock had increased its holdings in Azul through the acquisition of additional preferential shares and American Depositary Receipts (ADRs), pushing its ownership to just over 5%.

The news of Blackrock’s divestment aligns with ongoing speculation about Azul’s financial health. The airline’s CEO, John Rodgerson, has recently addressed rumors regarding the possibility of Azul seeking Chapter 11 bankruptcy protection in the United States, firmly denying such claims.

Despite these assurances, Azul’s shares on the New York Stock Exchange have experienced significant volatility, witnessing a 37.75% drop over the past month and a substantial 70.6% decline from September 2023 to the present.

Amid these turbulent financial conditions, Tomé Franca, Brazil’s national secretary for civil aviation, has commented on the situation, expressing confidence in Azul’s stability and market position. He described Azul as “an extremely consolidated and structured company in the aviation market, with strong regional reach,” indicating the government’s calm approach to the airline’s current challenges.

Azul, known for its comprehensive service across Brazil, is working on strategic measures to boost its profitability and liquidity as it navigates through these challenging economic times.

Sources: AirGuide Business airguide.info, bing.com, reuters.com