Air TransportAzul exits U.S. Chapter 11 after cutting $2.5 billion in debt
Brazilian carrier Azul has completed its restructuring under Chapter 11 bankruptcy protection in the United States, concluding a process that began less than nine months ago and was approved by a U.S. court in December 2025.
Chapter 11, a U.S. legal mechanism that allows companies to reorganize while continuing operations, has become a common tool for Latin American airlines seeking to renegotiate debt and lease obligations.
Azul said it raised $850 million in new equity as it exited the process, including contributions from bondholders and a $100 million investment from United Airlines. The company also formalized a commitment for a further $100 million from American Airlines, subject to approval by Brazil’s antitrust authority, known as CADE.
In addition, Azul issued $1.375 billion in new debt instruments and reduced total debt and lease liabilities by approximately $2.5 billion compared with pre-filing levels. The airline said annual interest expenses on loans and financing have been cut by more than half.
Aircraft lease liabilities were reduced by about 36%, while overall aircraft rental costs declined by roughly one-third, according to the company, without a reduction in operational capacity. Pro forma net leverage at emergence stood below 2.5 times.
The restructuring was backed by key financial stakeholders, including bondholders and aircraft lessors such as AerCap, one of the world’s largest leasing companies and a major counterparty to Azul, as well as manufacturers and suppliers.
Despite operating under court supervision, Azul maintained flight operations throughout the process. The airline carried 32 million passengers in 2025, operated around 800 daily flights and reported an on-time performance rate of 85.1%.
Azul serves more than 130 cities across roughly 250 routes with a fleet of about 175 aircraft. It is one of Brazil’s three largest airlines, alongside GOL and LATAM Airlines’ Brazilian unit.
The company’s exit comes as Brazil’s aviation sector continues to reorganize following the pandemic. Rival GOL also completed a U.S.-based restructuring in recent months, highlighting the financial pressures that have reshaped the country’s airline industry.
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Ricardo Meier
Creator of the website that started in 1996 as a magazine. He also writes on Brazilian websites AUTOO, MOTOO and MetrôCPTM.
