Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos) is now looking to raise fresh capital after securing a deal with 92% of its lessors and OEMs to strengthen its cash generation and eliminate approximately USD545 million from its current debt balance.
First reported by Reuters, the airline’s chief executive, John Rodgerson, said the company had to settle negotiations with the its remaining lessors and OEMs first. “And now we can raise capital. We can look forward and not backward.”
The company is looking to raise about USD400 million and will potentially use Azul Cargo, its freighter subsidiary, as collateral. Azul Cargo operates a fleet of six aircraft (two B737-400(F)s and four E195 Class F Freighters). Additionally, it expects to induct two A321-200(P2F)s next year.
"As we said, we were going to use Azul Cargo to raise debt - perhaps a convertible debt - to strengthen us and help us grow, knowing now that the money will not go to lessors as that matter has been addressed," Rodgerson said.
Azul is currently in talks with bondholders, looking at the company’s options through “several types of debt” for a potential transaction. The plan is to raise capital in the first or second quarter 2025.
