Azul Linhas Aéreas () can ask for music at Fantástico – perk that the Sunday program of TV Globo Give football players scoring three goals in the same match. Contrary to the skepticism of the market, it was, for the third time, renegotiating debts with creditors, without the need for some kind of judicial protection.
The impacts of these agreements will be clearer now in April, when billions in debt will be converted into action. In the stock market, the company still inspires caution and accumulates fall of more than 11% in the year. In the execution of the business, however, the company is stubborn to generate a cash excess in the short term.
“One thing this restructuring allows for is to generate cash, which is something that the market really charges us,” said Alex Malfitani, Azul’s financial vice president, in an interview with Infomoney.
According to the executive, what other airlines managed to do through the Chapter 11 In the United States, debt restructuring mechanism similar to judicial recovery in Brazil, Azul did consensual – without the order of a judge for creditors to accept actions of the company. “We did everything not to go this way. It would be the last resource,” he said.
“Stop being a creditor with a guarantee to become a shareholder is proof of trust in the company,” added Malfitani.
A debt of the lessosors [arrendadores de aeronaves] in the amount of R $ 3.1 billion was converted in just over 96 million shares on April 3. Last night (9), the company in a second capital increase, in the amount of R $ 72.7 million. The company said the controllers are in operations.
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“Controllers are putting new money and doing this with a little prize in the price it is today. I think this is also a sign that they believe in the company,” said John Rodgerson, CEO of Azul, during the last conference conference conference.
Later this month, Azul needs to convert $ 785 million of credit notes that would win by 2029 and 2030. Until 30 April, 35% of these bonds They will be converted into preferred shares and 52.5% into new convertible notes. The conversion of the 12.5% residuals is linked to a primary offer of $ 200 million, which may occur “at any time in the near future,” said Rodgerson to analysts.
“Investors realize that Azul has a solid strategy, one of the best margins in the industry worldwide, larger than goal and Latam. But there is no cashier in the end. With this restructuring, it will be left,” Malfitani said.
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“When there is a cashier, I can pay the most expensive debt, and I generate even more cashier, by reducing my interest expense. Or, instead of making operational lease, which is more expensive, I can do a much cheaper financial lease.”
New money and dilution
Along with the restructuring of the debt, Azul also got new money in a $ 525 million capture at the end of January. From the company’s calculations, all these movements together represent a reduction of R $ 6.3 billion in the debt that the company had at the end of the fourth quarter of 2024.
This reduction, however, has a price: something like 55% of the company, as the capital increases resulting from these agreements should raise the number of shares of Azul from 500 million to more than 2.3 billion. Dilution is a theme that has still left investors re -sabled.
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With the “equitization” of debt, creditors gain more decision -making power in Azul. The company has just announced the signing of in which holders of notes, linked to the restructuring, will be able to appoint two independent members to the company’s board of directors.
In addition to breathing debt reduction, Azul has also seen a combination of exchange and fuel more favorable to the operation this year. Malfitani, however, says the company cannot be hostage to volatility.
“I can’t have an area company that only works when the dollar is weak or when interest is low. We have to have a company that always works,” he added.
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New slogan and possible fusion
The company started the second quarter of the year with slogan New, “The sky of Brazil is blue”, aiming to stimulate the Brazilian flying within the country. Not without first the company’s most frequent customers receive an email with apology from the CEO for operational problems.
Malfitani says Azul has become this page. “We see customer satisfaction, punctuality coming back and demand [por voos] from Brazil is still good ”.
The problems in the supply chain also diminished. According to the executive, Azul has been able to find more planes and engines in the market. In February, the company brought a new technical vice president “to have more heads looking at the operation and ensure regularity,” says the CFO.
The position was assumed by André Cruz, a professional with over 30 years in the air sector and tickets for Boeing and Gol, where he was director of technical operations.
On the theme theme of a possible merger with Gol, Malfitani is discreet and does not leave the script From the memorandum of non -binding understanding (Mou), signed in January with Abra Group, Gol’s main shareholder.
The operation divides opinions and, on the one hand, has been criticized by former Member of the Economic Defense Council (Cade), who will give or not endorse deal. Recently, the agency filed an administrative proceeding that found the reason for not being informed of an agreement codeshare between the two companies.
“We believe that, with the merger, we will be able to serve 200 destinations in Brazil and have more frequency of flights. It is a growth fusion that will bring more options to the Brazilian client,” says Malfitani, avoiding rebutting criticism.
