Azul airline announced that a US court approved its Chapter 11 judicial recovery plan, with over 90% creditor approval. The restructuring forecasts a reduction of more than US$ 3 billion in debts and the process's end in early 2026. It includes stock offerings and leasing contract changes for enhanced financial flexibility.
Azul announced on Friday, December 12, 2025, that a US court approved the airline's Chapter 11 judicial recovery plan, equivalent to Brazil's recovery process. The plan garnered over 90% approval from all eligible creditor classes, advancing the proceedings started on May 28, 2025, when the company filed to reorganize its financial obligations. Azul was the last of Brazil's major airlines, following Latam and Gol, to enter this mechanism.
The restructuring anticipates a reduction exceeding US$ 3 billion in debts, plus cuts in aircraft lease obligations, annual interest expenses, and recurring fleet costs. According to the company, the plan includes commercial agreements and amendments to aircraft leasing contracts, which together boost long-term financial flexibility and position Azul for sustainable growth post-process. "Combined, these initiatives significantly enhance Azul's long-term financial flexibility and position the company for sustainable growth after exiting the process," the company stated in a note.
A key component is a planned public stock offering of up to US$ 950 million, staged and involving the conversion of certain creditors' claims into equity shares. Azul expects the process to conclude in early 2026. Chapter 11 enables companies to renegotiate debts to avert bankruptcy, sustaining operations and employee payments during the period.
