Decision authorizes debt restructuring and reduction and allows us to move towards the end of Chapter 11
The United States Bankruptcy Court for the Southern District of New York authorized the judicial reorganization plan for Azul Linhas Aéreas, paving the way for a significant reduction in the company’s debt and for the completion of the recovery process in the coming months. Read the press release sent to the market (PDF – 151 kB).
The decision was made on Friday (Dec 12, 2025) by Judge Sean H. Lane. Azul will be able to execute the plan, which includes a reduction in net debt from US$7 billion to US$3.7 billion, the equivalent, at the current exchange rate, of a drop from more than R$37 billion to around R$19.9 billion.
With approval, the company moves on to the plan implementation phase, which involves relevant adjustments to leasing contracts, conversion of debt into shares and entry of new strategic investors. The measure allows the company to advance in the reorganization process and complete judicial recovery.
Azul filed for judicial protection in the United States in May 2025, after facing financial pressure caused by rising costs and the prolonged effects of the pandemic on the airline sector. In a petition presented to the North American Court, the company detailed the main pillars of the financial restructuring approved under Chapter 11.
The plan establishes DIP (debtor-in-possession) financing, creation of an independent committee, changes in corporate governance and reorganization of liabilities. The request was authorized by Azul’s Board of Directors at a meeting held on May 27, 2025 and filed with the United States Bankruptcy Court for the Southern District of New York the following day.
In a statement, Azul’s CEO, John Rodgerson, stated that the confirmation of the plan represents “a decisive step towards completing the company’s financial transformation”. The restructuring also includes the offering of share rights of up to US$950 million, of which US$850 million is guaranteed by strategic partners, in addition to commercial agreements and renegotiation of aircraft leasing contracts.
Azul reported that it continues to operate normally, with flights, customer service and loyalty programs maintained while it executes the final stages of the approved plan.
