Azul S.A. Successfully Emerges from Chapter 11

Azul S.A. Successfully Emerges from Chapter 11

Emerges with a significantly strengthened balance sheet, positioned for long-term stability and sustained growth

Received US$850MM of new equity investments, reduced debt and lease obligations by approximately US$2.5B and achieved the lowest leverage in the Company's history

SÃO PAULO, Feb. 25, 2026 /PRNewswire/ -- AZUL S.A. (B3: AZUL53; OTC: AZULQ) ("Azul" or "Company"), the largest airline in Brazil in number of cities served and direct domestic routes, announced the successful completion of its voluntary financial restructuring process and emergence from Chapter 11. The Company's Plan of Reorganization, previously confirmed by the U.S. Bankruptcy Court on December 19, 2025, is now effective.

Through this process, Azul achieved a comprehensive balance sheet and operational transformation and emerges from Chapter 11 having achieved its key objectives for this process, including strengthening its balance sheet, enhancing liquidity, reducing lease expense and liabilities, and improving every aspect of its operations to support long-term sustainability and sustainable growth. The restructuring was supported by key financial stakeholders, including its existing bondholders, its largest lessor, AerCap, representing the majority of the Company's aircraft lease liability, and other lessors, OEM and suppliers counterparties, and its strategic partners, United Airlines and American Airlines.

Key Achievements of Restructuring

• Significantly Strengthened Financial Position
  • Received US$850 million of new equity investments at emergence, including from existing bondholders and US$100 million from United Airlines
  • Executed a commitment with American Airlines for an incremental US$100 million equity investment, subject to antitrust approval
  • Raised US$1.375 billion of new exit notes
  • Reduced loans and financing debt and lease liabilities by US$2.5 billion, compared with pre-petition amounts
  • Reduced annual interest paid on loans and financing by over 50%
  • Reduced fleet debt by 36% and aircraft leasing costs by approximately one-third, without reducing operating capacity
  • Achieved pro-forma net leverage of less than 2.5x at emergence

• Swift and Efficient Court-Supervised Process
  • Successfully completed restructuring in less than nine months
  • Maintained 85.1% performance on time
  • Operated approximately 800 flights per day, without disruption

• Strong Operational Performance
  • Achieved 2025 performance targets despite ongoing restructuring
  • Served 32 million customers in 2025 – the largest in Azul's history
  • Ranked the 4^th most on-time airline in the world
  • Served over 130 cities across 250 routes
  • Operated a fleet of approximately 175 aircraft

"This is a defining milestone for Azul," said John Rodgerson, Chief Executive Officer of Azul. "In just under nine months, we completed a comprehensive restructuring that has materially strengthened our balance sheet and positioned Azul for long-term stability. We are emerging from Chapter 11 with the support of some of the most respected financial and strategic partners in global aviation."

"I am especially proud of our Crewmembers, whose dedication and resilience allowed us to continue operating at a high level throughout this process. Their unwavering commitment to our Customers ensured Azul never lost focus on what matters most: connecting Brazil with excellence and reliability."

With a significantly improved capital structure, Azul's emergence from Chapter 11 marks a pivotal moment in the Company's transformational journey. With a strengthened financial position and the continued support of its stakeholders, Azul is entering its next phase from a position of strength, and remains focused on connecting Brazil like no other airline while delivering industry-leading service, reliability and value to Customers.

The Company's competitive advantages are greater than ever, supported by:

• The largest network in Brazil
• A uniquely diversified business model, including its Azul Cargo and Azul Viagens businesses and the Azul Fidelidade loyalty program
• A modern, efficient fleet comprised of approximately 80% next-generation aircraft
• Strong brand recognition and strategic international partnerships

Looking ahead, Azul remains focused on disciplined and sustainable growth, continued operational excellence and delivering long-term value to Customers, Crewmembers, and our partners worldwide.

Additional Information

Stakeholders seeking specific information about Azul's Chapter 11 case can visit its dedicated website at www.azulmaisforte.com.br. For case and claims information, please visit https://cases.stretto.com/Azul or call (833) 888-8055 (toll-free) or (949) 556-3896 (international).

The Company is supported by Davis Polk & Wardwell LLP, White & Case LLP, and Pinheiro Neto Advogados as legal counsel; FTI Consulting as financial advisor; Guggenheim Securities, LLC as investment banker; SkyWorks Capital LLC as fleet advisor; and FTI Consulting and MassMedia as strategic communications advisors.

About Azul

Azul S.A. (B3: AZUL53; OTC: AZULQ), the largest airline in Brazil in terms of cities served, offers more than 800 daily flights to 137 destinations. With an operational fleet of around 200 aircraft and over 15,000 crew members, the company operates a network of 250 direct routes. Azul was ranked by Cirium (a leading aviation data analytics 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, marking the first time a Brazilian airline achieved first place in the Traveler's Choice Awards. For more information, visit Azul's website, www.voeazul.com.br/imprensa. 

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SOURCE Azul S.A.