Brazilian airline Azul Linhas Aereas has finalised negotiations with its aircraft lessors and creditors, securing up to US$500 million in new financing from bondholders. As part of the agreement, Azul will receive US$150 million immediately, another US$250 million by the year’s end and a further US$100 million soon after. Additionally, cost reductions negotiated with certain lessors and manufacturers are expected to provide US$150 million in cash flow improvements over the next 18 months.
The airline anticipates a substantial reduction in annual interest costs, estimating a nearly US$100 million saving through renegotiated leasing contracts. Azul has also committed to strengthening its fleet with eight new aircraft arriving before year’s end, which will enable a 15% increase in seating capacity during the fourth quarter of 2024.
With this expanded capacity, Azul is positioning itself to meet high travel demand during the Brazilian summer, particularly from December 16, 2024, to February 2nd, 2025, when the airline will add 3,048 flights for a seasonal total exceeding 43,000 flights, including newly launched international routes.
News of Azul’s strengthened liquidity and operational expansion boosted the airline’s shares by approximately ten percent on Monday, October 28, following recent market uncertainty and speculation about potential bankruptcy proceedings.
