Brazilian carrier Azul has successfully emerged from Chapter 11 bankruptcy protection, completing a restructuring that eliminated approximately $2.5 billion in debt and secured $850 million in new equity investment.
## Key Details
– **New Equity:** $850 million at emergence
– **Debt Reduction:** ~$2.5 billion in liabilities cut
– **United Investment:** $100 million equity stake
– **American Investment:** $100 million pending antitrust approval
– **New Financing:** $1.375 billion in “exit notes”
– **Net Leverage:** Below 2.5x post-restructuring
## What Changed
Azul’s restructuring transformed its balance sheet:
– **Before:** Heavy debt load, limited flexibility
– **After:** Manageable leverage, strategic capital from US carriers
The airline maintained operations throughout the process, reporting 85.1% on-time performance, 800 daily flights, and 32 million customers served in 2025.
## Why It Matters
Azul is Brazil’s largest airline by destinations served. Its exit from Chapter 11 — backed by both United and American — signals confidence from major US carriers in the Brazilian market.
CEO John Rodgerson emphasized that net leverage below 2.5x is essential for resilience in Brazil’s volatile economic environment. The airline is now focused on “responsible growth” rather than aggressive expansion.