Brazilian airline Azul has received U.S. court approval to proceed with its accelerated transformation plan under Chapter 11 bankruptcy protection, marking a significant step in its financial restructuring efforts. The court authorized Azul to access $250 million of its $1.6 billion debtor-in-possession financing, ensuring sufficient liquidity to maintain uninterrupted operations during the restructuring process .

Azul’s restructuring plan aims to reduce over $2 billion in debt, primarily through debt-to-equity conversions. The airline has secured strong support from key stakeholders, including strategic partners United Airlines, American Airlines, and aircraft lessor AerCap, who may contribute up to $300 million in equity financing .

Despite the financial challenges, Azul continues to operate its 900 daily flights to over 150 destinations across Brazil and internationally. The airline has assured customers that all tickets, loyalty points, and travel packages will remain valid throughout the restructuring process .

The next significant milestone in Azul’s restructuring journey is the “Second Day” hearing, scheduled for July 9, 2025, where the court will consider final approvals for the company’s proposed relief measures. Azul aims to emerge from Chapter 11 by early 2026, positioning itself as a stronger competitor in the global aviation industry.

For travelers planning to visit Brazil, Azul’s ongoing operations and commitment to customer service make it a reliable option for exploring the country’s diverse destinations.

More information about Azul’s Chapter 11 case can be found at the dedicated website at www.azulmaisforte.com.br.