Azul Exits U.S. Bankruptcy After Cutting $2.5 Billion in Debt and Strengthening Liquidity

The Brazilian airline Azul officially formalized its exit from the Chapter 11 bankruptcy process in the United States on Friday, according to a statement released to the market. With this move, the company closes a cycle that began in May 2025, when it sought judicial protection to restructure its debt amidst an environment still marked by the financial aftermath of the pandemic.

The company stated that it achieved the primary objectives of its restructuring, which focused on:

Financial Restructuring: Debt Reduction and New Capital Injection

The core element of the process was a reduction of approximately $2.5 billion in debt and lease obligations. This adjustment represents a structural change in the company’s financial profile, which is particularly relevant in a capital-intensive industry that is highly sensitive to demand volatility.

In parallel, Azul reinforced its balance sheet by:

The combination of liability reduction and new financing allowed the airline to reconfigure its financial base while maintaining access to fresh resources.

Legal Framework and Future Outlook

From a technical standpoint, the Chapter 11 process allowed the airline to negotiate with creditors and lessors within a U.S. legal framework that provides temporary protection against claims, facilitating the restructuring of contracts and obligations.

With the formal exit from Chapter 11 in the United States, Azul concludes a process aimed at stabilizing its balance sheet following the cumulative impacts on Latin American aviation since 2020.

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