American and United Lock In $300M Azul Investment

Azul filed for Chapter 11 protection in New York in May 2025 with roughly $5 billion in debt, high leasing costs, and a business crippled by years of real depreciation against the dollar. Nine months later, the Brazilian carrier is days from emerging. On Wednesday, Azul announced it had finalized amended investment agreements with American Airlines and United Airlines, locking in $200 million in equity commitments — $100 million from each — plus a separate $100 million from existing creditors through a concurrent public offering.

United’s investment will settle through the equity offering announced February 3, with completion expected February 20. American’s $100 million will come via warrant subscriptions, giving it the right to purchase Azul shares at a set price — though the full exercise requires prior approval from CADE, Brazil’s antitrust authority. Both deals include standalone warrant agreements that could add approximately $15 million from United and $10 million from creditors if exercised.

Two rivals, one target

The investment structure is unusual: America’s two largest legacy carriers are simultaneously buying into the same foreign airline. United has been a minority shareholder and codeshare partner with Azul since 2014, feeding traffic from its US hubs through Azul’s domestic network of ~160 destinations. American, by contrast, has historically partnered with Azul’s rival Gol. The bankruptcy changed the calculus. With Azul’s valuation depressed and merger talks with Gol shelved, American moved to secure its own position in Brazil’s domestic market.

A US bankruptcy court approved Azul‘s full restructuring plan in December, authorizing the elimination of over $2 billion in debt, annual interest savings of roughly $200 million, and a 35% fleet reduction. The broader equity raise targets $950 million, combining the strategic investments with a public offering of approximately R$7.4 billion ($1.34 billion) in new shares. Upon exit, both American and United will each hold about 8.5% of the restructured airline. For existing Azul shareholders, the dilution will be significant. For the two US carriers, it is a bet that Brazil’s underpenetrated aviation market — Azul is the sole operator on 82% of its routes — still has room to grow. This is part of The Rio Times’ daily coverage of Latin American news and financial markets.

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