Azul Completes Chapter 11 Restructuring, Reduces Debt by $2.5 Billion

Azul S.A. (B3:AZUL53; OTC:AZULQ) announced Friday it has completed its voluntary financial restructuring under Chapter 11 proceedings in the United States. The company stated in a press release that it has emerged from the process after repaying debtor-in-possession financing and settling a public share offering.

According to the filing, all conditions for the effectiveness of Azul’s court-approved reorganization plan have been met or waived as of Friday, making the plan effective and substantially consummated. The restructuring was conducted before the United States Bankruptcy Court for the Southern District of New York.

Key results disclosed by Azul include a reduction of approximately $2.5 billion in debt and lease obligations. This includes a decrease in loans and financing debt by about $1.1 billion, a reduction in aircraft lease debt by nearly 40%, and an estimated reduction in annual interest payments of more than 50% compared to pre-Chapter 11 levels. The company also reported an estimated one-third reduction in recurring aircraft leasing and a pro forma net leverage of less than 2.5 times following the plan’s implementation. Azul raised approximately $1.375 billion through the issuance of senior notes and $950 million in equity commitments.

The restructuring was carried out in agreement with the company’s main creditors, including its largest aircraft lessor, AerCap, as well as strategic investors United Airlines, Inc. and American Airlines, Inc.

Azul stated it continued to operate about 800 flights per day without disruption during the process and achieved its 2025 operational targets. The company reported carrying 32 million customers in 2025, serving more than 130 cities across 250 nonstop routes, and operating a fleet of about 170 aircraft.