After being affected by several external
factors, such as exchange rate fluctuations and challenges in the
global aviation supply chain, Azul announces the completion of
negotiations with aircraft lessors and the signing of a support
agreement with its main creditors, establishing an enhanced
financial position and unlocking further growth.
SÃO PAULO, Oct. 28,
2024 /PRNewswire/ -- Azul, Brazil's largest airline by number of flights
and destinations, today announces the completion of agreements with
its aircraft lessors and bondholders. This agreement secures an
investment of US$ 150 million to be
funded this week, an additional US$ 250
million following the completion of relevant documentation
and another US$ 100 million once
other conditions under negotiation are finalized. With such
agreements signed, the company successfully advances on its clear
and friendly process to strengthen its balance sheet and cash
position.
"This announcement reflects the relationship and trust our
partners have placed in us for over 15 years, demonstrating
confidence in our business model and our company's cash-generation
capabilities. We are convinced we will continue our expansion
trajectory into the future," said John
Rodgerson, CEO of Azul.
Azul has renegotiated 98% of its obligations with aircraft
lessors and original equipment manufacturers (OEMs), resulting in
about US$ 550 million in finalized
agreements, which significantly reduce debt and improve cash flow.
Additionally, the company has secured US$
400 million in additional financing and is paving the way
for an additional US$ 100 million,
alongside a potential further reduction of its debt by more than
US$ 800 million.
"Azul has been one of the only airlines globally that did not
receive direct government support in recent years, nor did it file
for court protection to manage its debts. Instead, we opted for
amicable negotiations that yielded beneficial results for all
involved. Thanks to the trust and respect we have garnered in the
market, we will continue to be one of the strongest and
fastest-growing airlines worldwide," concluded the executive.
Azul, which will receive eight new aircraft by the end of this
year, expects a 15% increase in capacity in the fourth quarter of
2024. For the peak Brazilian summer season, from December 16 to February 2, the airline will offer
3,048 extra flights. In total, the company will operate 43,300
flights during such season, including new international routes.
About Azul
Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in
Brazil in terms of departures and
cities served, offers 1,000 daily flights to more than 160
destinations. With an operating fleet of more than 180 aircraft and
more than 16,000 crewmembers, the company has a network of 300
direct routes. Azul was chosen by Cirium (a leading aviation data
analysis company) as the 2nd most punctual airline in the world in
2023. In 2020, Azul was awarded as the best airline in the world by
TripAdvisor, being the first time that a Brazilian airline won
first place in the Traveller's Choice Awards. For more information
visit www.voeazul.com.br/imprensa
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SOURCE Azul S.A.