U.S. Court Forces Raízen to Keep Azul Flying Amid Debt Crisis

A US court has stepped in to keep Azul, one of Brazil’s largest airlines, flying after its main fuel supplier, Raízen, threatened to stop delivering fuel. This decision comes as Azul faces serious financial trouble and tries to reorganize its debts in the United States.

Earlier this month, Raízen told Azul that it had missed payments on a major loan. Raízen, which is partly owned by Shell and Cosan, supplies about two-thirds of the fuel Azul needs for its flights within Brazil.

Raízen warned that if Azul did not pay soon, it would stop supplying fuel. For Azul, this was a big problem because Raízen is the only supplier at many airports where Azul operates.

Azul quickly asked the US court in charge of its financial recovery to stop Raízen from cutting off its fuel. The airline said that even a short break in fuel deliveries would force it to cancel flights and hurt its reputation.

Court Ruling Keeps Azul Flying Amid Bankruptcy Struggles

The court agreed and ordered Raízen to keep supplying fuel unless it gets special permission from the court to stop. Azul’s financial problems are serious.

The airline filed for bankruptcy protection in the US in May 2025, with debts of more than $5.5 billion. Azul has already made deals to cut $2.1 billion in debt and raised $525 million to help keep flying.

Still, the company’s shares fell by more than 4% after the court’s decision, showing that investors remain worried. This case shows how important steady fuel supply is for airlines.

If Raízen had stopped deliveries, Azul’s planes could have been grounded, affecting thousands of passengers and the wider Brazilian economy.

The court’s action also shows how US law can help companies in trouble by giving them a chance to fix their finances without sudden disruptions from suppliers or creditors.

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