Azul walked into U.S. bankruptcy court nine months ago drowning in debt. It walked out on Friday with American Airlines and United Airlines as shareholders.
Brazil’s third-largest carrier announced it has completed its Chapter 11 restructuring, raising $850 million in fresh capital and cutting roughly $2.5 billion in debt and lease obligations. The reorganization plan, confirmed by a U.S. court, is now in effect.
The headline detail is who wrote the checks. American and United each put in $100 million and are expected to receive equity in return — a rare case of two rival U.S. carriers jointly backing the same Latin American airline. A separate group of existing creditors committed another $100 million, though Azul did not identify them.
Brazil’s Azul Exits Chapter 11 With U.S. Rivals as Backers
For the U.S. airlines, the logic is access. Azul dominates Brazil’s regional routes, serving 130 cities with 175 aircraft and running roughly 800 flights a day — connectivity that neither American nor United can replicate on their own. Brazil remains Latin America’s largest aviation market.
For Azul, the restructuring closes a chapter of distress accelerated by pandemic-era losses and a weakening real that inflated dollar-denominated leases. CEO John Rodgerson said the company emerges with a stronger balance sheet and backing from “some of the most respected partners in global aviation.”
The airline carried 32 million passengers last year with an on-time rate of 85 percent. Whether the lighter balance sheet translates into sustained profitability depends on fuel costs, the real’s trajectory, and Brazil’s regional air market. The restructuring bought Azul time — what it does with it is the next chapter.