Latest news with #JohnRodgerson
Yahoo
30-05-2025
- Business
- Yahoo
Azul receives Court approvals to move forward with accelerated transformation process for the future, together with its strategic partners
Company operations and sales continue as usual, honoring all tickets, loyalty points, travel packages and Customer benefits Secures approval to access debtor-in-possession financing to bolster liquidity during restructuring Reaffirms commitment to safely connecting Brazil with Customer service of excellence SíO PAULO, May 30, 2025 /PRNewswire/ -- AZUL S.A. (B3: AZUL4; NYSE: AZUL) ("Azul" or "Company"), the largest airline in Brazil by number of flight departures and destinations, announced today that following a successful First Day Hearing, it received interim court approvals for all of its "First Day" motions related to the Company's voluntary Chapter 11 petitions filed in the United States on May 28, 2025. Among other relief, the Court granted approval for the Company to immediately access US$250 million of its US$1.6 billion debtor-in-possession ("DIP") financing. This financing, combined with other Court approvals and revenue generated from Azul's ongoing operations, will provide sufficient liquidity to support the continued, uninterrupted operations as the Company works to transform its financial future. "The Court's approval of all of our first day motions marks a pivotal milestone in positioning Azul for long-term success," said John Rodgerson, Chief Executive Officer of Azul. "These approvals, along with the strong support of our key financial stakeholders, including United Airlines, American Airlines, and AerCap, enable us to continue our accelerated transformation plan for the future. This process will allow Azul to significantly reduce its leverage and continue to generate cash, putting it on par with its global partners." The "Second Day" hearing to consider the Company's requested relief on a final basis is currently scheduled for July 9, 2025 at 2:00 pm ET. Additional Information Stakeholders seeking specific information about Azul's Chapter 11 case can visit its dedicated website at For case and claims information, please visit 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, C Street Advisory Group, and MassMedia as strategic communications advisors. The Participating Lenders are supported by Cleary Gottlieb Steen & Hamilton LLP and Mattos Filho as legal counsel and PJT Partners as investment banker. United Airlines is supported by Hughes Hubbard & Reed LLP and Sidley Austin LLP as legal counsel and Barclays Investment Bank as investment banker. American Airlines is supported by Latham & Watkins LLP as legal counsel. AerCap is supported by Pillsbury Winthrop Shaw Pittman LLP as legal counsel. About Azul Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of flight departures and cities served, offers 900 daily flights to over 150 destinations. With an operating fleet of over 200 aircrafts and more than 15,000 Crewmembers, the Company has a network of 300 non-stop routes. Azul was named by Cirium (leading aviation data analysis company) as the most on-time airline in the world in 2023. In 2020 Azul was awarded best airline in the world by TripAdvisor, the first time a Brazilian flag carrier earned the number one ranking in the Traveler's Choice Awards. For more information, access View original content: SOURCE Azul S.A. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
30-05-2025
- Business
- Time of India
Azul Airlines Chapter 11: Brazil airline Azul files for Chapter 11 to restructure debt, ET Infra
Advt Advt Brazilian airline Azul on Wednesday filed for Chapter 11 bankruptcy protection in the United States, it said in a securities filing, after months of trying to restructure mostly pandemic-era move, which may scupper a potential merger with peer Gol , makes the carrier the latest Latin American airline to file for bankruptcy in the aftermath of the severe industry fallout from the initial months of Paulo-traded shares of Azul fell as much as 12% after the filing, before paring losses to trade down around 3% in the afternoon. The stock is now down 70% year-to-date.A restructuring deal includes a commitment of $1.6 billion in financing throughout the process, elimination of more than $2 billion of debt, and a commitment of up to $950 million in equity financing upon emergence, the carrier said."We had too much debt on the balance sheet that principally came from COVID. We now have an opportunity to clean it all up," Chief Executive John Rodgerson told Reuters in an said it had entered into agreements with key financial stakeholders, including existing bondholders, aircraft lessor AerCap, and strategic partners United Airlines and American Airlines to support the restructuring."We believe we could be in and out prior to the end of the year," Rodgerson said. "The exit is sometimes the most difficult part of this process. So we're already entering with the exit in mind, and exiting with the financing lined up."Azul's move follows in the footsteps of Aeromexico, Colombia-based Avianca and its two largest rivals, Gol and LATAM Airlines, all of which filed for bankruptcy."This development comes as no major surprise," analysts at JPMorgan said in a note to clients, saying the bankruptcy process should lead to significant equity dilution and downgrading their recommendation on the stock to "Underweight" from "Neutral."Azul last year struck a deal with lessors to scrap $550 million in debt in exchange for an equity stake of around 20%, as well as a deal with bondholders to raise an additional $500 factors such as high costs, supply-chain issues delaying aircraft deliveries and maintenance plans, as well as a weaker Brazilian real, have kept the company under pressure."What I used to pay in interest in 2019 has gone up 10 times with a currency that is 50% weaker," Rodgerson and American agreed to invest up to $300 million to backstop an equity rights offering to repay the airline's debtor-in-possession financing when it emerges from net debt soared 50% year-on-year by the end of the first quarter to 31.35 billion reais ($5.6 billion), with its leverage ratio hitting 5.2, up from 3.7 a year latest blow came last month, as a capital increase fell short of expectations, pressuring Azul's and S&P recently downgraded Azul's credit ratings, with the latter citing an elevated default said it would maintain its operations and sales normally while in Chapter Chapter 11 filing likely spoils Azul's plans for a potential business combination with rival Gol, which would have created a dominant carrier in Latin America's No. 1 economy that Rodgerson once touted as a "national champion"."We believe that consolidation discussions with Gol should be put on hold until Azul emerges from Chapter 11," JPMorgan said.
Yahoo
28-05-2025
- Business
- Yahoo
Azul transforms for the future as Company reaches agreements on financial reorganization with key stakeholders, including its lenders, largest lessor, and strategic partners United Airlines and American Airlines
Company initiates pre-arranged restructuring process in the United States to effectuate agreements including approximately US$1.6 billion in debtor-in-possession financing. Agreements to secure exit financing structure, including up to US$950 million in equity investments, enabling an accelerated path to emergence, a significant step in positioning Azul as a long-term industry leader in the region. Operations and sales continue as usual, honoring all tickets, loyalty points, and Customer benefits, safely connecting Brazil with Azul's industry-leading Customer service. SíO PAULO, May 28, 2025 /PRNewswire/ -- AZUL S.A. (B3: AZUL4; NYSE: AZUL) ("Azul" or "Company"), the largest airline in Brazil by number of flight departures and destinations, today announced it has entered into Restructuring Support Agreements (the "Agreements") with its key financial stakeholders, including its existing bondholders; largest lessor, AerCap, representing the majority of the Company's aircraft lease liability; and strategic partners, United Airlines and American Airlines, to effectuate a proactive reorganization process. The Agreements are designed to transform the Company's financial future and position the business for the long term with significant deleveraging and positive cash flow generation. To implement the Agreements, which include a commitment of approximately US$1.6 billion in financing throughout the process, elimination of over US$2.0 billion of debt and contemplate further equity financing of up to US$950 million upon emergence, Azul is using the Chapter 11 process in the United States. Customers, Crewmembers, and partners remain Azul's priority. Azul will continue flying and operating as normal while maintaining its commitments throughout this process. "Azul continues to fly – today, tomorrow, and into the future. These Agreements mark a significant step forward in the transformation of our business – one that enables us to emerge as an industry leader in the main aspects of our business," said John Rodgerson, Chief Executive Officer of Azul. "With a collaborative approach and the support of our stakeholders, we have made a strategic decision to pursue a voluntary financial restructuring as a proactive move to optimize our capital structure – which was burdened by the COVID-19 pandemic, macroeconomic headwinds, and aviation supply chain issues. Our strategy is not just about financial reorganization. By using this process, we believe that we are creating a robust, resilient, industry-leading airline – one that Customers will continue to love flying, at which Crewmembers will continue to love working, and that will create value for our stakeholders." Chapter 11 is a Court-supervised financial reorganization process in the United States through which companies can restructure their balance sheet while continuing operations in the ordinary course of business. Azul intends to use this proven, well-known legal framework to eliminate over US$2.0 billion in total funded debt, reduce lease obligations, and optimize its fleet, allowing the Company to emerge with greater flexibility and a more sustainable business and capital structure. "AerCap has signed a support agreement with its longstanding partner Azul. As the airline moves through its restructuring process, we are very confident Azul will emerge stronger than ever," said Aengus Kelly, Chief Executive Officer of AerCap. "Together with Azul, we are the largest owners of Embraer E2 commercial aircraft, supporting the Brazilian aviation industry like no other." Azul's process is unlike any other airline restructuring case in the region, given the fact that it enters the process with agreements with many of its main stakeholders already in place. Azul has secured a commitment for debtor-in-possession ("DIP") financing of approximately US$1.6 billion from certain key financial partners, which will repay part of the Company's existing debt and provide the Company with approximately US$670 million of new capital to bolster liquidity during the restructuring process. Upon emergence, the Agreements provide for the DIP financing to be repaid with the proceeds of an Equity Rights Offering of up to US$650 million, backstopped by some of these financial partners and further supported by a contemplated additional equity investment of up to US$300 million from United Airlines and American Airlines, subject to the satisfaction of certain conditions. This comprehensive financing package means that Azul's path to emergence is clear, which streamlines the process and accelerates the timeline. "United was proud to begin cooperating with Azul in 2014 and to invest in Azul in 2015. Since that time, we have connected hundreds of thousands of passengers and are excited about the opportunity to grow this business even more. Azul is more than just a commercial partner for United – their customer-first approach and unique route network connecting small and large communities have improved the passenger experience in Brazil. That's why we support Azul's restructuring process and have entered into an agreement to build an even stronger relationship in the future," said Andrew Nocella, Executive Vice President and Chief Commercial Officer of United Airlines. Stephen Johnson, Vice Chair and Chief Strategy Officer for American Airlines added, "We are confident that Azul's plan to strengthen its future will be extremely positive for the Brazilian aviation market and travelers to, from and across Brazil. American has served Latin America since 1942 and is proud to fly to 14 destinations in South America. Our service, including that of our partners GOL and JetSMART, combined with the strength and breadth of Azul's network, will provide our customers another unique option for traveling between the Americas and even more connectivity in Brazil and throughout South America. We are excited to support this process and to be part of Azul's future." Azul has filed customary motions with the Court to support ordinary-course operations including, but not limited to, continuing Crewmember compensation and benefits programs, honoring all Customer commitments including tickets for future travel and benefits under the Azul Fidelidade loyalty program, and fulfilling go-forward obligations to select vendors who are truly critical to the Company. These motions are typical in the Chapter 11 process. John Rodgerson concluded, "We are grateful for the support of our bondholders, particularly those who are providing Azul with new capital, and our key strategic partners, American Airlines, United Airlines, and AerCap. Their support will allow us to optimize our fleet, reinforce our financial position, and operate more efficiently. We are confident that we will emerge even stronger and better positioned to continue connecting Brazil like no other, while offering the best service and value to our Customers." Additional Information Stakeholders seeking specific information about Azul's Chapter 11 case can visit its dedicated website at For case and claims information, please visit 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, C Street Advisory Group, and MassMedia as strategic communications advisors. The Participating Lenders are supported by Cleary Gottlieb Steen & Hamilton LLP and Mattos Filho as legal counsel and PJT Partners as investment banker. United Airlines is supported by Hughes Hubbard & Reed LLP and Sidley Austin LLP as legal counsel and Barclays Investment Bank as investment banker. American Airlines is supported by Latham & Watkins LLP as legal counsel. AerCap is supported by Pillsbury Winthrop Shaw Pittman LLP as legal counsel. About Azul Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of flight departures and cities served, offers 900 daily flights to over 150 destinations. With an operating fleet of over 200 aircrafts and more than 15,000 Crewmembers, the Company has a network of 300 non-stop routes. Azul was named by Cirium (leading aviation data analysis company) as the most on-time airline in the world in 2023. In 2020 Azul was awarded best airline in the world by TripAdvisor, the first time a Brazilian flag carrier earned the number one ranking in the Traveler's Choice Awards. For more information, access View original content: SOURCE Azul S.A.
Reuters
24-02-2025
- Business
- Reuters
Brazilian airline Azul's core earnings up 33% in Q4
SAO PAULO, Feb 24 (Reuters) - Brazilian airline Azul (AZUL.N), opens new tab on Monday reported fourth-quarter core earnings slightly above market expectations and said it was optimistic about this year, after a challenging 2024 marked by a major debt restructuring. The carrier's earnings before interest, taxes, depreciation and amortization (EBITDA) reached 1.95 billion reais ($340.31 million) in the October-December period, it said, up 33% year-on-year, helped by higher passenger traffic and load factor. Analysts polled by LSEG expected EBITDA to come in at 1.91 billion reais in the quarter. "The combination of a weakening Brazilian real, the floods in Rio Grande do Sul state, significant OEM (original equipment manufacturers) and supply chain issues, and higher-than-expected fuel prices made for a very challenging year," CEO John Rodgerson said in a statement. Full-year EBITDA reached 6.07 billion reais, in line with Azul's previously released outlook of more than 6 billion reais. Net revenue rose 10.2% in the fourth quarter to 5.54 billion reais, while analysts expected 5.62 billion reais. Azul recently concluded a major restructuring that included the termination of almost $1.6 billion in debt from its balance sheet, while it also raised $525 million in fresh money. The company is now eyeing a potential business combination with rival Gol ( opens new tab that would create a dominant carrier in Latin America's No. 1 economy, holding roughly 60% of the domestic market. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here.
Yahoo
24-02-2025
- Business
- Yahoo
Brazilian airline Azul's core earnings up 33% in Q4
SAO PAULO (Reuters) - Brazilian airline Azul on Monday reported fourth-quarter core earnings slightly above market expectations and said it was optimistic about this year, after a challenging 2024 marked by a major debt restructuring. The carrier's earnings before interest, taxes, depreciation and amortization (EBITDA) reached 1.95 billion reais ($340.31 million) in the October-December period, it said, up 33% year-on-year, helped by higher passenger traffic and load factor. Analysts polled by LSEG expected EBITDA to come in at 1.91 billion reais in the quarter. "The combination of a weakening Brazilian real, the floods in Rio Grande do Sul state, significant OEM (original equipment manufacturers) and supply chain issues, and higher-than-expected fuel prices made for a very challenging year," CEO John Rodgerson said in a statement. Full-year EBITDA reached 6.07 billion reais, in line with Azul's previously released outlook of more than 6 billion reais. Net revenue rose 10.2% in the fourth quarter to 5.54 billion reais, while analysts expected 5.62 billion reais. Azul recently concluded a major restructuring that included the termination of almost $1.6 billion in debt from its balance sheet, while it also raised $525 million in fresh money. The company is now eyeing a potential business combination with rival Gol that would create a dominant carrier in Latin America's No. 1 economy, holding roughly 60% of the domestic market. Sign in to access your portfolio
