Azul finalizes debt restructuring, reduces financial leverage

Published 29/01/2025, 09:26
© Reuters.

Investing.com -- Brazilian airline Azul announced on Tuesday that it has successfully concluded a debt restructuring process. This process involved discussions with bondholders, suppliers, and plane lessors, as stated in a securities filing.

In the course of this restructuring, Azul eliminated nearly $1.6 billion in debt from its balance sheet. Alongside this, the airline was able to raise $525 million in new funds.

The conclusion of these negotiations has resulted in a decrease in the company’s financial leverage. Measured by a net debt to EBITDA ratio, this leverage has dropped to 3.4 times from a previous 4.8 times.

This month, Azul entered into an agreement to consider a merger with competitor airline Gol. The company stated that the restructuring measures have led to a reduction in its expected interest payments for this year by almost 1 billion reais ($170.7 million).

John Rodgerson, Chief Executive of Azul, expressed optimism about the company’s future in a press statement. He also shared that the airline anticipates receiving 15 new Embraer’s E2 jets during the year.

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