Azul Airlines Revises Growth Projections and Strengthens Financial Position in Chapter 11 Restructuring
Azul Airlines updates its business plan during Chapter 11, reducing growth projections while aiming to lower debt and enhance operational efficiency.
- • Azul reduced revenue CAGR from 7.4% to 5.8% in the updated business plan.
- • Adjusted EBITDA growth expectation lowered from 12.2% to 9.3%.
- • Net leverage at exit is projected at 2.5 times, down from 3 times in the prior plan.
- • The company plans operational optimization focusing on strong hubs and an optimized fleet mix.
Key details
Azul Linhas Aéreas has unveiled an updated business plan as part of its ongoing Chapter 11 bankruptcy restructuring process in the United States. The airline revised its revenue growth CAGR from 7.4% down to 5.8% and adjusted its expected adjusted EBITDA growth from 12.2% to 9.3% for the 2025-2029 period, reflecting a more conservative growth outlook amid restructuring efforts. The company maintained its capacity growth projection at 3.4% measured by available seat kilometers (ASK), despite previously higher targets. Additionally, the revenue per ASK (RASK) CAGR has been moderated from 3.9% to 2.3%, and operating costs per seat kilometer (CASK) CAGR is forecasted at 0.8%, indicating tighter cost control.