After facing problems with the high exchange rate and the aviation supply chain, Azul Linhas Aereas announced the conclusion of negotiations with aircraft lessors and creditors.
In addition, the Brazilian carrier secured additional financing of up to US$500 million with holders of its bonds.
Of this amount, US$150 million will be received this week and another US$250 million by the end of the year, with US$100 million to be released shortly thereafter.
Another US$150 million will come from the reduction of some lessors and manufacturers over the next 18 months.
Azul said it could also save almost US$100 million in interest per year after the revision of leasing contracts.
John Rodgerson, CEO of Azul, highlights the importance of this milestone: “This announcement reflects the relationship and trust that our partners have placed in us for over 15 years. It is a demonstration of the strength of our business model and the company’s cash generation capacity. We believe that this puts us in a favorable position to maintain our growth rate.”
Fleet expansion and increase in flight capacity
In the short term, Azul expects to arrive with eight new aircraft this year, which will allow for a 15% increase in its seat supply in the last quarter of 2024.
With this, the airline is preparing to meet the high demand of the Brazilian summer, especially between December 16 and February 2, when it will offer 3,048 additional flights, totaling more than 43,000 flights during the season, including new international routes.
The announcement sent the carrier’s shares up about 10% on Monday, after months of speculation about a possible Chapter 11 filing in U.S. Bankruptcy Court.
