Brazilian low-cost airline Gol Linhas Aéreas Inteligentes SA (GOL) has announced that its parent company, Abra Group, has officially ended merger talks with rival airline Azul Linhas Aéreas Brasileiras (Azul). This decision concludes plans for a potential merger that would have formed Brazil’s largest airline group.
In a notice issued on September 26, 2025, the Brazilian airline formally informed Azul that Abra Group was terminating merger talks, referencing the Confidentiality Agreement signed between Azul and Abra on April 12, 2024.
After signing a Memorandum of Understanding (MoU) on January 15, 2025, Abra Group expressed its willingness to continue merger discussions, noting that talks could proceed alongside Azul’s ongoing Chapter 11 restructuring.
However, the parties have not “meaningfully discussed or progressed” a possible business combination for several months due to Azul’s focus on its Chapter 11 proceedings, according to the notice.
Moreover, GOL informed Azul that the execution of the MoU and the pre-filing with the Administrative Council for Economic Defense (CADE) occurred under different circumstances, which no longer represent the current situation of both companies.
As a result, GOL stated in the notice that, in accordance with the Confidentiality Agreement, Abra Group is ending discussions with Azul about the possible transaction.
“We continue to believe in the merits of a business combination of Azul and GOL Linhas Aéreas Inteligentes S.A. and, as such, Abra is ready, willing and available to engage with the relevant stakeholders,” GOL concluded the notice.
The merger had the potential to transform Brazil’s airline industry, creating the biggest airline group in the country, surpassing the current largest group, LATAM Airlines.
