Azul Airlines, Brazil’s top carrier, has reached a significant milestone in its financial recovery journey by securing agreements with 92% of its aircraft lessors and equipment manufacturers. These deals cover around R$3 billion ($545 million) in obligations and involve converting a portion of creditors’ claims into preferred shares to improve cash flow.
The restructuring plan includes issuing up to 100 million new preferred shares to creditors, aiming to reduce lease payments by R$1.3 billion ($236 million) in 2023 and R$1 billion ($182 million) in 2024. Despite stock declines and investor concerns, Azul anticipates a revenue of R$20 billion ($3.64 billion) and EBITDA projection exceeding R$6 billion ($1.09 billion) for 2024.
With plans to explore additional funding sources and leverage Azul Cargo as collateral for up to R$4.4 billion ($800 million), the airline remains hopeful about its future. The approval of credit lines for airlines by the government signifies industry support amid pandemic-related challenges, reflecting broader trends in global aviation.
Azul’s commitment to finalizing the restructuring plan and navigating financial hurdles will be crucial for its long-term sustainability and growth in the competitive aviation market.
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