Azul Secures $1.6 Billion DIP Financing, Strengthening Position Amid Restructuring

Reuters
Yesterday
Azul Secures $1.6 Billion DIP Financing, Strengthening Position Amid Restructuring

Azul S.A., the largest airline in Brazil by flight departures and destinations, has received final court approval for its US$1.6 billion debtor-in-possession financing as part of its Chapter 11 restructuring process. This approval marks a significant milestone for Azul, reinforcing its ability to maintain uninterrupted operations while executing its accelerated transformation plan. The financing, combined with operating cash flows and continued support from strategic partners, positions Azul to deliver reliable service across Brazil and beyond. CEO John Rodgerson highlighted the outcome as a testament to the strength of Azul's business and the commitment of its stakeholders. Additionally, Azul filed an agreement with AerCap to optimize its aircraft lease liabilities, expected to yield benefits of about US$1 billion, with a hearing scheduled for August 13, 2025. These efforts are focused on optimizing Azul's fleet, reducing costs, and strengthening its capital structure.

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