Brazil’s Azul emerges from bankruptcy with leaner balance sheet

Brazilian airline Azul has exited Chapter 11 bankruptcy proceedings, having reduced debt and strengthened its balance sheet, and will now focus on “responsible growth”, CEO John Rodgerson told.

The airline cut $2.5 billion in debt and lease obligations and raised nearly $2.35 billion through debt and equity investments during its roughly nine-month restructuring. Azul’s net leverage ratio fell below 2.5, down from 3.3 during the pandemic, News.Az reports, citing Reuters.

Rodgerson ruled out any mergers or acquisitions, saying prior talks with Gol and LATAM Airlines had ended as Azul prioritized its financial restructuring.

As part of the process, American Airlines and United Airlines invested in the carrier, providing $100 million each in equity support, with American’s investment pending antitrust approval.

“We are now de-leveraged and shielded to withstand anything,” Rodgerson said, highlighting the airline’s strengthened position in Brazil amid economic uncertainties.

News.Az 

By Aysel Mammadzada