The United States bankruptcy court has approved the restructuring for Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos), allowing the carrier to continue its Chapter 11 bankruptcy process, which includes over USD1 billion in debtor-in-possession loans.

“During this month, at least one additional hearing shall be held to secure additional approvals,” the company said in a statement. It added that it remains focused on finalising the restructuring plan, which will allow it to improve its financial future and position the business “for the long term.”

The Brazilian carrier filed for Chapter 11 in late May 2025, looking to eliminate over USD2 billion in funded debt.

Over the last two months, the company has rejected the leases of several aircraft, suspended trading on the New York Stock Exchange (NYSE), filed motions to keep its fuel supply despite a trustee’s efforts to halt it, and simultaneously maintained a separate legal battle with the Portuguese government over a 2016 bond which remains unpaid.