Azul reaches payments deal with lessors

Azul has reached commercial agreements with lessors to cut payments on more than 90% of its lease obligations. The Brazilian airline said that the deals “represent a significant part of a comprehensive plan” which is “designed to strengthen [its] cash generation and improve its capital structure, and also deliver to lessors 100% of the prior-committed values through a combination of long-term debt and equity valued at a reset balance sheet”. The lessors are reducing Azul’s lease payments to eliminate Covid-related deferrals as well as the gap between Azul’s contractual lease rates and agreed-upon current market rates, the airline announced, with