Azul Linhas Aéreas Brasileiras has negotiated with Aercap and other creditors to reduce its debt by approximately BRL 3 billion (USD 545m) in exchange for issuing up to 100m new preferred shares.
Approximately 92pc of the airline’s existing equity issuance obligations are covered by lessors and OEMs, with ongoing negotiations for the remaining 8pc and other stakeholders.
The airline is planning to raise additional financing and is looking at a private offering in the first half of 2025 as part of its reorganization to enhance profitability and liquidity post-pandemic.
As of the second quarter of 2024, Azul operates a fleet of 183 aircraft, primarily under operating leases, and has 52 aircraft on order, including three ATR72-600s and forty-nine E195-E2s.
AerCap has leased 58 aircraft to Azul, while other lessors include Aircastle, Avenue Capital Group, Avolon, Azorra, subsidiary Azul Finance, BOC Aviation, Carlyle Aviation Partners, Castlelake, CDB Aviation, Chorus Aviation, DAE Capital, Elevate Capital Partners, ICBC Financial Leasing, Jackson Square Aviation, Nordic Aviation Capital, SKY Leasing, SMBC Aviation Capital, TrueNoord, and World Star Aviation.
