Brazilian carrier Azul has completed agreements with its aircraft lessors and bondholders to secure an investment of $150 million to be funded this week.
This will be in addition to $250 million following the completion of relevant documentation and an additional $100 million once further conditions under negotiation are finalised.
"This announcement reflects the relationship and trust our partners have placed in us for over 15 years, demonstrating confidence in our business model and our company's cash-generation capabilities. We are convinced we will continue our expansion trajectory into the future," said John Rodgerson, CEO of Azul.
The carrier has renegotiated 98% of its obligations with aircraft lessors and original equipment manufacturers (OEMs), resulting in $550 million in finalised agreements, which will aim to reduce debt and improve cash flow. Additionally, the company has secured $400 million in additional financing and is also seeking an additional $100 million, alongside a potential further reduction of its debt by more than $800 million.
Rodgerson added: “Azul has been one of the only airlines globally that did not receive direct government support in recent years, nor did it file for court protection to manage its debts. Instead, we opted for amicable negotiations that yielded beneficial results for all involved.”
Azul, which will receive eight new aircraft by the end of this year, expects a 15% increase in capacity in the fourth quarter of 2024. For the peak Brazilian summer season, from December 16, 2024, to February 2, 2025, the airline will offer over three thousand extra flights. In total operating 43,300 flights during the season, including new international routes.