Azul Airlines has reached a pivotal agreement with its unsecured creditors, marking a major milestone in its US Chapter 11 restructuring. The deal with the Official Committee of Unsecured Creditors (UCC) supports Azul’s plan to reorganize its business rather than liquidate it, allowing the airline to continue operations while strengthening its financial foundation.
As part of the agreement, Azul has secured approximately $1.6 billion in financing to maintain normal flight operations. The airline will return 20 underused aircraft to optimize its fleet and plans to raise $950 million in new equity, further improving liquidity and long-term financial stability.
The restructuring plan offers general unsecured creditors a choice between a cash payout of up to $20 million and an interest in a trust created for their benefit. The airline has committed to contributing warrants representing up to 5.5% of equity, performance-based payments of up to $6.5 million annually through 2029, and $2.5–5 million to cover administrative costs of the trust. According to Azul statement, warrants will be reduced for creditors who opt for cash instead of the trust.
“The Company believes that entering into this agreement represents a significant milestone toward the successful completion of its restructuring process. It marks an important step in achieving a consensual and orderly resolution that preserves operations, strengthens the Company’s capital structure, and delivers sustainable value to all stakeholders,” was written in Azul’s statement released on November 1, 2025.
Throughout the restructuring process, Azul has continued regular flight operations without disruption. The airline also recently secured an additional $500 million in funding to further support liquidity and operational stability.
Next, a US bankruptcy court will review the updated plan at a disclosure hearing on November 4, followed by creditor voting.
A confirmation hearing is scheduled for December 11, with Azul targeting an exit from Chapter 11 in early 2026.
