Azul Airline completes US financial restructuring with debt reductions and US carrier investments

TheWkly Analysis

Azul airline announced on Friday (20) that it has completed its voluntary financial restructuring process in the United States. The company stated the process was a success, emerging with a strengthened balance sheet positioned for greater long-term stability and sustainable growth. The restructuring was implemented through agreements with its main creditors, including holders of debt securities issued by the company, its largest aircraft lessor AerCap (a major global aircraft leasing company), and two strategic investors United Airlines, Inc. (a leading US-based airline) and American Airlines, Inc. (another major US carrier). The process resulted in a reduction of loan and financing debt by approximately US$1.1 billion, a nearly 40% drop in aircraft lease debt, and an estimated decrease in annual interest payments of more than 50% compared to pre-restructuring levels. Related developments include Azul closing a US$200 million deal with American and United Airlines, and Cade (Brazil's antitrust authority) approving an increase in United's stake in Azul.