Azul has entered into an agreement with key stakeholders to support an equity capital raise of up to $650 million, according to a securities filing.
The airline said it entered into a "backstop commitment agreement" on July 31, 2025, which is pending approval from the US court which is overseeing its bankruptcy proceedings.
In May, Azul filed for Chapter 11 bankruptcy protection in the US after securing support from stakeholders including major bondholders, lessor AerCap and partners United and American Airlines.
The Brazilian carrier said that this restructuring will aim to reduce debt by over $2bn and includes a $1.6bn debtor-in-possession (DIP) financing package, with $670 million in new liquidity.
Upon emerging from the proceedings, the airline plans an equity rights offering of up to $650 million, backstopped by financial partners, and may receive an additional $300 million equity investment from both United and American, pending conditions.