Azul successfully negotiates with partners, strengthens financial position

Azul (AZUL) announces the completion of agreements with its aircraft lessors and bondholders. This agreement secures an investment of $150M to be funded this week, an additional $250M following the completion of relevant documentation and another $100M 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. Azul has renegotiated 98% of its obligations with aircraft lessors and original equipment manufacturers, resulting in about $550M in finalized agreements, which significantly reduce debt and improve cash flow. Additionally, the company has secured $400M in additional financing and is paving the way for an additional $100M, alongside a potential further reduction of its debt by more than $800M. Azul, which will receive eight new aircraft by the end of this year, expects a 15% increase in capacity in the fourth quarter. 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.