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Azul Airlines Successfully Exits US Bankruptcy Proceedings
21 Feb
Summary
- Brazilian airline Azul has formally exited bankruptcy proceedings in the US.
- The airline significantly reduced debt and lease obligations by $2.5 billion.
- Azul raised nearly $1.4 billion in debt and $950 million in equity.
Brazilian airline Azul announced its formal exit from Chapter 11 bankruptcy proceedings in the United States on Friday, February 20, 2026. This significant milestone was achieved after the company successfully met its primary restructuring objectives. These included enhancing its capital structure, boosting liquidity, and reducing its overall indebtedness. The restructuring process saw Azul reduce its debt and lease obligations by an impressive $2.5 billion. To support these efforts and its future operations, the airline secured substantial new financing. This included raising nearly $1.4 billion through debt instruments and an additional $950 million from equity investments. Azul initially filed for bankruptcy protection in May 2025, aiming to navigate its financial challenges amid a broader industry impact from COVID-19. The airline's successful emergence highlights its resilience and strategic financial management following a challenging period for the aviation sector. Several other Latin American carriers, including Aeromexico and Avianca, also sought bankruptcy protection starting from 2020.
