Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos) is looking to place a private offering at some point in the first or second quarter of 2025, according to a report by the Brazilian media outlet Valor.
However, for the carrier to be able to place this offering, it would have to emerge from its current critical state. This could be done by reaching an agreement with aircraft lessors, optimising its equity structure, and developing a new plan to improve its profitability and liquidity.
In a September 15 market update, Azul said negotiations are ongoing but no binding agreement had been reached. “The terms and conditions of any potential restructuring are still subject to discussion and definition by the parties involved. Such negotiations do not exclude or limit other discussions and models for optimising Azul's capital structure,” it added.
Valor reported that the recent cutting in interest rates by the US Federal Reserve and Brazil’s central bank raising them could benefit Azul, reducing its debt through a dollar depreciation (currently USD1 trades at BRL5.43 Brazilian reais, which is higher than the same period in 2023 when it traded at BRL4.87). If the Brazilian real appreciates 10% to the US dollar, Azul’s debt could then drop to around BRL21.6 billion (USD3.9 billion).
ch-aviation has reached out to Azul for comment.
