Brazilian carrier Azul Brazilian Airlines announced that it has successfully completed its Chapter 11 restructuring process as of February 25, 2026, bringing an end to a roughly nine-month court-supervised reorganization.
As part of the process, Azul reduced its debt and lease liabilities by approximately $2.5 billion. With backing from major industry players including United Airlines and American Airlines, the airline secured $850 million in fresh capital. The restructuring effectively cut its debt servicing obligations in half and, according to the company, established a more sustainable financial model.
Importantly, Azul continued operating throughout the Chapter 11 proceedings. In 2025, the airline carried a record 32 million passengers and operated an average of 800 daily flights. The development marks the latest chapter in a broader wave of restructuring among major Latin American carriers.
With United Airlines increasing its stake in Azul to nearly 8%, strategic ties between the two airlines have further strengthened. Going forward, Azul stated it will focus on disciplined spending and long-term financial stability as it moves beyond bankruptcy protection.
