By Brazil Stock Guide – Azul S.A. (B3: AZUL4; OTC: AZULQ) said on Friday (Sept. 19, 2025) it requested U.S. bankruptcy court approval to extend exclusivity deadlines for filing and voting on its reorganization plan. The airline is also seeking authority to modify aircraft and engine leases and to secure new financing, while pushing for confidentiality over sensitive negotiations.
The company told the United States Bankruptcy Court for the Southern District of New York that the measures would give it room to align fleet and liabilities with its business plan. Azul, Brazil’s largest airline by flights and destinations, operates about 1,000 daily flights to more than 150 cities with a fleet of over 180 aircraft.
Azul said it will maintain “open communication with investors, clients and crew” during the restructuring. At the same time, it asked the court to redact commercially sensitive information, highlighting the tension between transparency and protecting leverage in negotiations.
What’s at Stake
The airline is trying to stabilize operations while under Chapter 11 protection, balancing creditor demands with the need to sustain growth in a highly competitive market. The outcome will shape Brazil’s aviation sector, where Azul competes with Gol Linhas Aéreas Inteligentes S.A. and LATAM Airlines Group S.A. for passengers and market share.
If the court grants more time, Azul gains negotiating power with lessors and financiers, who may face pressure to accept new terms. Creditors, however, risk further delays in recovering funds. Investors are watching closely: Azul’s stock trades under pressure in both São Paulo and the U.S. OTC market.
Case documents are available at https://cases.stretto.com/Azul, and Azul set up a separate portal, www.azulmaisforte.com.br, to update stakeholders.
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