Azul S.A. has emerged from Chapter 11 bankruptcy protection after completing a court-supervised restructuring that reduced its debt and lease obligations by approximately $2.5 billion and brought in $850 million in new equity investment.
The Brazilian carrier said its Plan of Reorganization became effective on February 25, 2026, after a US bankruptcy court affirmed it in December 2025. Azul entered Chapter 11 in 2025 and completed the process in less than nine months.
As part of the restructuring, Azul secured $850 million in new equity financing, including $100 million from United Airlines. American Airlines committed to invest an additional $100 million in equity, subject to antitrust approval. Azul also raised $1.375 billion in new exit notes.
Azul said it reduced its loans, financing debt, and lease liabilities by $2.5 billion compared with pre-bankruptcy levels. The company reported cutting annual interest expense by more than half, reducing fleet debt by 36%, and lowering aircraft leasing costs by roughly one-third.
Azul continued operating throughout the Chapter 11 process. The airline said it maintained 85.1% on-time performance and operated roughly 800 flights per day during the restructuring. In 2025, Azul carried 32 million passengers, the highest annual total in its history, and ranked as the fourth most on-time airline globally.
The carrier operates daily flights to more than 130 cities across approximately 250 routes. Its fleet includes about 175 aircraft, with roughly 80% classified as newer models.
Azul Chief Executive Officer John Rodgerson said the restructuring materially strengthened the company’s balance sheet and positioned the airline for long-term stability. He credited employees for maintaining operational performance during the court process.
Azul’s restructuring received support from financial stakeholders, including existing bondholders, aircraft lessors, and strategic partners. AerCap, the company’s largest lessor, backed the plan, along with other leasing companies, suppliers, and aircraft manufacturers.
The airline operates a business model that includes cargo operations, a travel services division, and a passenger loyalty program. It maintains international partnerships with United Airlines and American Airlines.
Azul said it will focus on “disciplined growth, operational performance, and strengthening its position” in the Brazilian domestic market as it exits bankruptcy protection.
