Azul secures more than R$2 billion in financing from Brazilian Development Bank

The Brazilian carrier will use the loan to pay down existing debt and shore up liquidity.
Azul has secured up to R$2.66 billion ($511 million) in long-term financing through a loan agreement with the Brazilian Development Bank (BNDES).

The Brazil-based carrier drew an initial tranche of about R$1.3 billion on 29 September and expects to take the remaining R$1.3 billion in the fourth quarter of this year.

Azul will use R$400 million of the five-year loan to repay an existing higher-cost debt. The remainder will be used to strengthen liquidity and support its long-term plans.

The BNDES loan was provided under Brazil’s National Civic Aviation Fund.

Azul emerged from Chapter 11 bankruptcy protection in February after a nine-month restructuring process.

The carrier slipped to an operating loss of R$159 million in the second quarter, from a R$380 million profit a year earlier, as high fuel costs took a toll. Despite sharply cutting capacity, its revenue grew 0.7% in the April-June period.

Azul said earlier this year that 2026 would be a “transition” year and that capacity growth would resume.

The post Azul secures more than R$2 billion in financing from Brazilian Development Bank first appeared on FlightGlobal.

Source: www.flightglobal.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.