By Brazil Stock Guide – Azul Linhas Aéreas Brasileiras S.A. (B3: AZUL4; NYSE: AZUL) has asked the U.S. Bankruptcy Court for the Southern District of New York to approve the return of three additional aircraft and one engine as part of its Chapter 11 restructuring. The filing, submitted on Sept. 9, will be reviewed by Judge Sean H. Lane. So far, the airline has sought to return 12 aircraft and seven engines. The request was reported by Valor Econômico.
The latest motion covers one Airbus A320-200N, registered PR-YYB and leased from Muzinich, as well as two Embraer ERJ190-200 jets leased from ICBC. Azul aims to shrink its planned fleet by 35%, focusing on phasing out older-generation Embraer aircraft amid a tight global market for spare parts. Azul ended the second quarter operating 186 aircraft.
“Chapter 11 gives airlines the flexibility to resize fleets quickly and at lower cost,” said a person close to the restructuring. “Outside court protection, early aircraft returns are often slow and costly.”
Fleet renewal strategy
Azul is using Chapter 11 to accelerate fleet renewal, prioritizing the retirement of older Embraer models and the transition to the new-generation E2 line. Executives expect the shift to improve efficiency and lower maintenance costs over time.
Under U.S. court protection, the airline decides which aircraft remain in operation, while lessors are barred from repossessing planes during the process. The framework strengthens Azul’s bargaining position and provides predictability in its fleet adjustments.
The airline continues to negotiate directly with lessors to reshape its cost base. The pace of court approvals in New York will determine how quickly Azul can return aircraft and roll out its E2 fleet, as the industry grapples with uneven demand and global maintenance bottlenecks.