Air TransportAzul Airlines to Slow E2 Deliveries and Return A330neos to Lessors
Azul Linhas Aéreas announced on Thursday, an updated business plan as part of its restructuring process under Chapter 11. The document foresees adjustments to the fleet and reduction of financial obligations, aiming to position the company for sustainable recovery.
The company estimates exiting the process with a net leverage of 2.5 times, resulting from negotiations with shareholders and strategic changes in leasing contracts. The plan also includes a cost saving of US$ 139 747 million, based on productivity gains and agreements already made.
According to Azul, liabilities will be lower than previously estimated, due to the maintenance of lower-cost E-Jets E1 aircraft, a decrease in deliveries of the E195-E2, and rejection of Airbus A330-900 aircraft. These factors allow for smaller lease payments and debts.
The updated plan shows a significant improvement in the EBITDA less rent indicator compared to previous scenarios. The company also assesses potential for an additional saving if it achieves the projected execution rate.
“This business plan reflects the passion of our crew and our desire to rebuild Azul as a much stronger airline. During this process, we have managed to reach agreements with our key stakeholders, significantly reducing our debt and leverage, increasing our free cash flow generation, and at the same time establishing long-term strategic relationships. The plan we present today shows these positive results and we are extremely excited to prepare Azul for the future,” said John Rodgerson, CEO of Azul.
A330neo jets transferred to rival GOL?
The document that explains Azul’s business plan does not detail how many E2 jets will be postponed nor how the company intends to ‘reject’ the A330neo, its more modern widebodies, but it does confirm recent movements in the fleet.
Regarding the E195-E2, doubts persist about the future of Embraer’s aircraft in its fleet. Increasingly numerous, the 36 aircraft deliver better performance and efficiency, but have a more expensive leasing. Azul has 51 direct orders with the manufacturer but has not yet received any of them.
The five A330-900 currently in service seem to have a ‘domestic’ destination. Leased from Avolon, they may indeed change addresses and go to rival GOL. The airline revealed it has closed a deal for five aircraft with the same lessor and will receive the jets in 2026.
This aligns with the possible receipt of A330-200 jets currently flying with ITA Airways to replace the A330neo in Azul.
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