SAO PAULO - The CEO of Brazilian airline Azul stated in an interview that the company is prepared to raise additional capital following agreements with lessors and bondholders to defer debts maturing in the near future as part of a comprehensive restructuring plan.
John Rodgerson expressed that the additional funds would enable Azul to resume growth, as the airline plans to establish new routes this year.
Azul recently launched exchange offers on Tuesday, seeking to extend the maturity dates of bonds due in 2024 and 2026 to 2029 and 2030, respectively, after reaching an agreement with aircraft lessors, granting them equity and tradable debt in exchange for reduced payments.
"Now, with all our debt renegotiated and extended, we are prepared to secure new capital," said Rodgerson. "Investors are interested in supporting our growth, not paying off old creditors."
Azul is currently evaluating the market and will release further details about any potential transactions. Rodgerson indicated that the opportunity could arise "at any moment" and confirmed that Azul's loyalty program, TudoAzul, and its cash flow could be offered as collateral.
Rodgerson previously mentioned this possibility during a press conference earlier this year, following similar actions taken by U.S. carriers Spirit and Hawaiian, emphasizing it as "far more valuable" collateral than the airline itself.
With robust demand expected to drive record revenue this year, Azul plans to introduce 10 to 15 new routes within Brazil by year-end, in addition to the recently launched international routes to Paris and Curacao, according to Rodgerson.
"While international routes are often discussed as glamorous, we see significant opportunities within Brazil," he stated. "The flight to Paris exists because we also serve rural Pernambuco state."
Although Azul's shares have risen by 70% year-to-date, they still remain below pre-pandemic levels. Rodgerson hopes that the recently announced exchange offer will help alleviate this pressure on the company's stock.
