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Azul Successfully Concludes Chapter 11 Restructuring Process in the U.S.

Azul has announced the successful conclusion of the Chapter 11 restructuring process in the U.S.  Azul emerges from bankruptcy with a significantly strengthened balance sheet, positioning the company for greater long-term stability and growth.


Azul Airbus A320neo Featuring Special Walt Disney World Themed Livery - Courtesy Airbus
Azul Airbus A320neo Featuring Special Walt Disney World Themed Livery - Courtesy Airbus

On Friday (February 20, 2026), Azul announced the successful conclusion of the Chapter 11 financial restructuring process in the U.S. With the reduction of debt and lease obligations of approximately $2.5 billion, the airline emerges from the process with a significantly strengthened balance sheet, and is now positioned for greater long-term stability and sustainable growth.  Azul is Brazil’s largest airline by number of cities served and nonstop domestic routes.


Through the reorganization process, Azul carried out a comprehensive transformation of their balance sheet, and emerges from Chapter 11 having achieved several key objectives, including strengthening the airline’s capital structure, increasing liquidity, and substantially reducing debt, enabling greater sustainability and long-term growth for their operations.  The restructuring was achieved through agreements with Azul’s main creditors, including holders of the company’s debt securities issued in the market, their largest aircraft lessor, AerCap, and two strategic investors, United Airlines and American Airlines.


As a result of the restructuring, Azul has reduced loans and financing debt by approximately $1.1 billion, reduced aircraft lease debt by nearly 40 percent, and lowered annual interest payments of over 50 percent compared to pre‑Chapter 11 levels.  Azul has also raised approximately $1.375 billion through the issuance of Senior Notes and $950 million in equity commitments.


Throughout the reorganization, Azul continued to operate around 800 flights daily, without disruptions.  The airline carried 32 million customers in 2025, a company record.  Currently, Azul serves 130 cities across 250 nonstop routes with an operational fleet of approximately 170 aircraft. 



Source: Azul

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