Azul transforms for the future as Company reaches agreements on financial reorganization with key stakeholders, including its lenders, largest lessor, and strategic partners United Airlines and American Airlines

Core Viewpoint - Azul S.A. has initiated a pre-arranged restructuring process under Chapter 11 in the United States, aiming to secure approximately US$1.6 billion in debtor-in-possession financing and eliminate over US$2.0 billion in debt, positioning the company for long-term success in the aviation industry [1][3][5]. Financial Restructuring - The restructuring process includes Restructuring Support Agreements with key stakeholders, including bondholders and major lessors like AerCap, as well as strategic partners United Airlines and American Airlines [3][6]. - The financing structure involves up to US$950 million in equity investments, which will facilitate an accelerated emergence from the restructuring process [1][3]. - The company plans to utilize the Chapter 11 process to optimize its capital structure, reduce lease obligations, and enhance fleet efficiency, ultimately leading to improved cash flow generation [5][10]. Operational Continuity - Azul will continue its operations normally, honoring all customer commitments, including tickets and loyalty points, throughout the restructuring process [2][4]. - The company has filed motions to support ordinary-course operations, ensuring that crewmember compensation and benefits programs remain intact [9]. Stakeholder Support - Key stakeholders, including AerCap, United Airlines, and American Airlines, have expressed confidence in Azul's restructuring plan, highlighting the collaborative approach taken to strengthen the airline's future [6][8][9]. - The support from these partners is expected to reinforce Azul's financial position and operational efficiency, allowing the company to emerge stronger post-restructuring [10]. Company Overview - Azul S.A. is the largest airline in Brazil by flight departures and destinations, operating over 900 daily flights to more than 150 locations with a fleet of over 200 aircraft [13]. - The airline has been recognized for its operational excellence, being named the most on-time airline in the world in 2023 [13].