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Azul S.A.'s Successful Emergence from Chapter 11

Azul S.A., Brazil's largest airline in terms of destinations and domestic routes, has triumphantly completed its Chapter 11 restructuring, marking a key turning point in its corporate journey. The efficient resolution, confirmed by the U.S. Bankruptcy Court on December 19, 2025, has set the stage for renewed operational vigor and financial stability.

A Milestone Achievement

On February 25, 2026, Azul's management announced that the airline has successfully restructured its financial obligations, leading to significant improvements in its balance sheet. The airline, which has been a staple of Brazil’s aviation sector, achieved a remarkable US$850 million in new equity investments. Among the key financial partners involved, United Airlines contributed US$100 million, while American Airlines pledged an additional US$100 million, contingent on antitrust approval.

This financial injection is complemented by a debt reduction of approximately US$2.5 billion, which represents a dramatic lightening of the company’s financial load. As a result, the airline reduced its financing and lease liabilities significantly, achieving a pro forma net leverage of less than 2.5x. Additionally, its annual interest payments on loans were reduced by over 50%, demonstrating a substantial strengthening of Azul's financial health.

Operational Excellence

Despite navigating through the restructuring process, Azul showcased impressive operational metrics, maintaining a 85.1% on-time performance rate and efficiently operating around 800 flights daily. In 2025, the airline served an unprecedented 32 million customers, further establishing its stature in the aviation sector. The fleet, composed of approximately 175 aircraft, expanded to cover a wide network of over 250 routes and 130 cities. Notably, Azul was even ranked as the 4th most on-time airline globally, reflecting its commitment to reliability.

Strategic Partnerships and Future Outlook

With critical backing from its stakeholders, Azul enters a new chapter characterized by strength and sustainability. The restructuring has improved not only its capital structure but also the competitive advantages that Azul possesses, including its expansive network across Brazil, a diverse business model that encompasses Azul Cargo and Azul Viagens, and a robust loyalty program, Azul Fidelidade.

In the words of Azul CEO John Rodgerson, “This is a defining milestone for Azul. We have completed a comprehensive restructuring that has materially strengthened our balance sheet and positioned Azul for long-term stability.” His sentiment reflects the pride in their team’s commitment to service excellence and operational continuity honored throughout the challenging process.

Moreover, the strategic alliances with major airlines like United and American not only enhance Azul's market presence but also reinforce its commitment to delivering high-quality services to passengers.

Commitment to Growth

Looking ahead, Azul remains committed to disciplined and sustainable growth, aiming to enhance operational excellence while continuing to provide lasting value to its customers and partners. The future outlook for Azul is more robust than ever as the airline strives to strengthen its position as the leading airline in Brazil, ensuring its role as a pivotal connector within the region.

The emergence from Chapter 11 marks the beginning of a new era for Azul, one where it is poised to redefine aviation excellence in Brazil and beyond. For more information regarding Azul and its restructuring process, stakeholders and interested parties can visit its dedicated website at www.azulmaisforte.com.br.

Azul S.A. continues to demonstrate its resilience and commitment to growth, focused on connecting Brazilian regions with exceptional service and reliability.