Azul’s R$ 3.1 Billion Capital Injection Signals Financial Recovery

Azul Linhas Aéreas approved a capital increase of R$ 3.1 billion ($543.9 million), issuing over 96 million preferred shares, as confirmed on April 2, 2025.

This move raises its total share capital to R$ 5.4 billion ($947.4 million), distributed across nearly 1.36 billion shares. The new shares began trading on Brazil’s B3 stock exchange on April 3, offering investors rights to dividends and profit-sharing.

This capital boost follows Azul’s extensive restructuring in 2024, which eliminated R$ 11 billion ($1.93 billion) in debt and converted R$ 3.3 billion ($579 million) into equity.

The airline also negotiated agreements with lessors and suppliers, projecting an additional R$ 1.8 billion ($315.8 million) in cash flow by 2027. These measures aim to reduce Azul’s leverage ratio from 4.8x to 3.4x EBITDA based on third-quarter 2024 figures.

Operationally, Azul reported record EBITDA of R$ 1.95 billion ($342.1 million) in the last quarter of 2024, up 18% from the prior quarter and 33% year-over-year.

Azul’s R$ 3.1 Billion Capital Injection Signals Financial Recovery. (Photo Internet reproduction)

This performance reflects improved efficiency despite challenges like high fuel costs and currency fluctuations. The company plans further expansion in 2025, including fleet modernization with new Embraer E2 aircraft.

A potential merger with rival Gol Linhas Aéreas, under review by Brazil’s antitrust authority until 2026, could consolidate nearly 60% of the domestic market.

Azul’s financial overhaul underscores the airline’s strategy to navigate a competitive industry with narrow margins. The capital increase and restructuring aim to stabilize its finances while positioning it for growth in Brazil’s aviation sector.