Brazil’s Azul Gets Court Approval for $1.6B Chapter 11 Loan
Azul Linhas Aéreas Brasileiras has secured court approval for its USD 1.6 billion debtor-in-possession (DIP) financing under its ongoing Chapter 11 reorganization process. The approval was granted by the US Bankruptcy Court for the Southern District of New York, marking a significant milestone in the Brazilian airline’s financial restructuring.
In an official statement, Azul emphasized that the court’s decision is a crucial step in supporting its ongoing operations and advancing its “accelerated transformation plan.” The DIP financing will provide the liquidity needed to maintain flight schedules, meet operational commitments, and continue delivering services to passengers while the restructuring is underway.
In addition to the DIP loan approval, Azul has submitted a key agreement with AerCap, its largest lessor, which holds the majority of the airline’s lease liabilities. The proposed agreement is expected to deliver around USD 1 billion in contractual benefits for Azul. A court hearing to evaluate and finalize this agreement is scheduled for August 13.
The airline’s Chapter 11 filing, made earlier in 2025, aims to restructure its debt and lease obligations while minimizing disruptions to its business. Azul continues to operate flights as usual during the proceedings and has assured stakeholders that it remains focused on long-term financial sustainability.
The combined court approvals for financing and lease restructuring are seen as critical components of Azul’s strategy to emerge stronger from the Chapter 11 process and to stabilize its position in Brazil’s competitive aviation market.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com