Azul Linhas Aéreas, Brazil’s largest airline by flight frequency and destinations, has revealed a dramatic restructuring plan, announcing its withdrawal from 13 cities and the elimination of 53 underperforming routes, effective from mid-August 2025, as part of its ongoing Chapter 11 bankruptcy proceedings in the United States.
The decision, detailed in the company’s latest Institutional Presentation on 8 August 2025, aims to bolster financial stability by focusing operations on its three primary hubs—Campinas (VCP), Belo Horizonte (CNF), and Recife (REC)—while phasing out unprofitable services. The move comes as Azul navigates a challenging financial landscape, having secured £1.2bn in debtor-in-possession financing and eliminated £1.6bn in debt through a comprehensive restructuring completed earlier this year.
The airline’s strategy targets routes with profit margins 17pc below its internal average, a response to mounting operational costs, currency devaluation, and fleet constraints exacerbated by the Covid-19 pandemic. Among the confirmed route cuts are international services from Fort Lauderdale, Florida, to Belo Horizonte and Manaus, ending on 9 August 2025, and to Curaçao, terminating on 10 August 2025. These reductions leave Azul with only two Fort Lauderdale routes, to Belém and Campinas. Domestically, the airline has already suspended flights to cities such as Aracati, Carajás, and Dourados since March 2025, with further exits planned for São Gabriel da Cachoeira, Tefé, and Parintins, though the full list of the 13 cities remains undisclosed. The Paris (CDG) route, previously a year-round service, has been scaled back to high-season only, reflecting Azul’s pivot toward high-demand corridors.
The restructuring is not solely about cuts. Azul is optimising its operations to enhance efficiency, negotiating competitive hotel rates for passengers affected by irregular operations and replacing costly airport restaurant meals with cost-effective breakfast and snack boxes. The airline’s focus on its Campinas, Belo Horizonte, and Recife hubs aims to strengthen connectivity across its 259-route network, which still serves over 160 destinations with 850 daily flights. Azul’s fleet, comprising 120 Embraer E-Jets and 45 Airbus A320neo aircraft, remains a cornerstone of its regional dominance, with a 38.5pc domestic market share. The airline projects record revenue of £4bn and an EBITDA of £1.5bn for 2025, a 40pc increase over pre-pandemic levels.
The route and city exits have sparked concern among regional communities, particularly in underserved areas like São Gabriel da Cachoeira, where air travel is often the only viable transport option. Critics argue the cuts could stifle local economies and tourism, while supporters of Azul’s plan, including CEO John Rodgerson, assert that the streamlined network will ensure long-term sustainability. The restructuring also dovetails with ongoing merger talks with GOL Linhas Aéreas, following a non-binding memorandum of understanding signed in January 2025. A combined entity could control 60pc of Brazil’s domestic market, though regulatory approval from Brazil’s Administrative Council for Economic Defence (CADE) remains pending.
Azul’s financial overhaul, backed by partners like United Airlines, American Airlines, and lessor AerCap, includes £291m raised through a preferred share offering in April 2025 and a projected £300m in additional cash flow through 2027. As Azul emerges from Chapter 11, expected by September 2025, the airline aims to solidify its position as a leaner, more competitive carrier. For passengers, Azul has committed to honouring all tickets, loyalty points, and agency commissions during the process, maintaining its reputation as the world’s most on-time airline in 2023, as recognised by Cirium. The coming months will test Azul’s ability to balance cost-cutting with its ambitious growth plans in Brazil’s dynamic aviation market.
