Azul has exited its Chapter 11 restructuring on Friday (February 20) after concluding its voluntary restructuring.
The court had previously approved the Brazilian airline's restructuring plan in December 2025.
The airline cut around $2.5bn in debt and lease obligations, including $1.1bn reduction in loans and financing and a nearly 40% reduction in aircraft lease debt.
Annual interest expenses are expected to fall by more than 50%, with pro forma net leverage projected at below 2.5x.
Azul implemented the restructuring through agreements with its main creditors. This included holders of its debt securities issued in the market, its largest aircraft lessor AerCap, as well as strategic investors United Airlines and American Airlines.
The airline raised new capital through senior notes issuance and equity commitments totalling over $2.3bn.
Following its exit, Azul said it will focus on disciplined growth, operational efficiency, and long-term value creation for both customers and investors.