Brazilian carrier Azul S.A. has formally emerged from Chapter 11 bankruptcy protection in the United States after completing a voluntary financial restructuring.
The airline said it had repaid its debtor-in-possession (DIP) financing in full and finalised a previously announced public share offering, allowing it to exit proceedings overseen by the US Bankruptcy Court for the Southern District of New York.
Azul’s reorganisation plan had been confirmed by the court in December 2025. The company said all conditions required for the plan to take effect had now been satisfied or waived.
Balance sheet overhaul
The airline said the restructuring had significantly strengthened its capital structure, boosted liquidity and reduced overall debt levels.
It described the process as a “comprehensive transformation” of its balance sheet, positioning the company for long-term sustainability and growth.
Azul is Brazil’s largest airline by number of cities served and domestic nonstop routes.
Share capital updated
Following the completion of the share offering and a reverse stock split approved at an extraordinary shareholder meeting earlier this month, Azul’s share capital now stands at BRL 21.76bn.
The company said its capital is divided into more than 54.7 trillion registered common shares with no par value. If newly approved warrants are fully exercised, that figure could rise to around 62.2 trillion shares.
Agreements with creditors and investors
The restructuring was implemented through agreements with key creditors, including bondholders and aircraft lessor AerCap.
Strategic investors United Airlines and American Airlines were also involved in the process.
Chapter 11 allows companies operating in the United States to restructure their debts while continuing operations. Azul stressed that the process was voluntary and designed to improve its financial resilience rather than to wind down operations.
The airline said it would now focus on strengthening its network and improving profitability in Brazil’s competitive domestic aviation market.
