The United States bankruptcy court has granted approval for Azul Linhas Aéreas Brasileiras to continue its Chapter 11 bankruptcy process, which involves over USD 1 billion in debtor-in-possession loans.
The Brazilian carrier filed for Chapter 11 in late May 2025 to eliminate over USD 2 billion in funded debt and is focused on finalising its restructuring plan.
Over the past two months, Azul has rejected several aircraft leases and suspended trading on the New York Stock Exchange.
The airline has also filed motions to maintain its fuel supply amid conflicting trustee efforts and is engaged in a legal dispute with the Portuguese government regarding an unpaid 2016 bond.
An additional hearing is planned for this month to secure further approvals related to the restructuring process.
The company shared that it remains focused on “finalising the restructuring plan, which will allow it to improve its financial future.”
The company shared that “at least one additional hearing shall be held to secure additional approvals.”
