Brazil’s Azul Exits Chapter 11 Restructuring
Brazil’s Azul Linhas Aéreas Brasileiras has formally concluded its voluntary financial restructuring process in the United States under Chapter 11 of the US Bankruptcy Code, according to a market filing dated February 20.
The carrier said it exited Chapter 11 after fully repaying its debtor-in-possession (DIP) financing on the same date and completing a previously announced public share offering. Following the restructuring, Azul’s new share capital totals BRL21.7 billion (approximately USD4.2 billion), divided into 54 trillion registered common shares.
Azul’s restructuring enabled the airline to significantly strengthen its balance sheet. The company reduced loan and financing obligations by roughly USD1.1 billion and cut aircraft lease liabilities by nearly 40%. In addition, the airline secured approximately USD1.375 billion through the issuance of senior notes and raised a further USD950 million in equity commitments from strategic partners and investors, including American Airlines, United Airlines, and aircraft lessor AerCap.
The airline stated that emerging from Chapter 11 marks a new phase focused on operational stability and long-term growth. Azul highlighted its diversified business model, which extends beyond passenger operations to include cargo services through Azul Cargo Express, a regional subsidiary operating as Azul Conecta, and its loyalty program platform. The cargo division operates under Azul’s main air operator certificate rather than a separate AOC.
Azul becomes the last of Brazil’s three major airline groups to complete Chapter 11 restructuring during the current decade. LATAM Airlines Brasil, through its parent LATAM Airlines Group, and GOL Linhas Aéreas Inteligentes previously finalized their own restructuring processes amid the financial pressures triggered by the COVID-19 pandemic and subsequent market volatility.
Azul currently operates a fleet of more than 170 aircraft across its mainline, regional, and cargo activities. Its fleet mix includes Airbus narrowbodies, Embraer regional jets, and ATR turboprops, enabling the airline to serve both major metropolitan markets and smaller regional destinations across Brazil.
With its balance sheet reset and fresh capital secured, Azul is positioning itself to compete more aggressively in Brazil’s domestic market while maintaining selective international growth, supported by renewed investor confidence and strategic partnerships.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com