Feb 21 • 12:24 UTC 🇧🇷 Brazil G1 (PT)

Azul says judicial recovery reduced debt by 1.1 billion dollars in loans and financing

Azul Linhas Aéreas has reported a significant reduction of 1.1 billion dollars in its debt following its judicial recovery process.

Azul Linhas Aéreas has completed a judicial recovery process that has led to a notable reduction of approximately 1.1 billion dollars in its loan and financing debts. In addition to this reduction, the company reported a substantial decline of around 40% in its lease obligations for aircraft, resulting in an overall reduction in liabilities amounting to about 2.5 billion dollars. This strategic financial maneuver has been critical for the company's long-term stability and operational viability.

Furthermore, the airline emerged from its judicial recovery process with 850 million dollars in new investments in stocks, which positions it favorably for future growth. Back in May 2025, when the company first initiated the judicial recovery process, it had projected a broader elimination of over 2 billion dollars (approximately 11.28 billion reais) and a financial injection of 950 million dollars. The successful completion of this process is indicative of the company's efforts to streamline operations and reduce its financial burdens in challenging economic conditions.

The announcement regarding Azul's exit from Chapter 11 of the U.S. Bankruptcy Code, which is akin to the judicial recovery in Brazil, was made on the evening of Friday, the 20th. This marks a pivotal moment for Azul Linhas Aéreas as it navigates the complexities of the aviation industry and prepares to leverage its revitalized financial structure to enhance competitiveness in the marketplace.

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