Azul Shares Gain 15% as Airline Confirms Talks With Lessors

Published 16 September 2024, 09:33:55 [BFW]

By Leda Alvim

(Bloomberg) -- Shares in Azul SA gain as much as 15% in Sao Paulo on Monday, extending Friday’s rally, after the Brazilian airline confirmed negotiations with its lessors. 

• The stock traded at 5.58 reais as of 10:20 a.m. in Sao Paulo; shares are down 62% YTD
  • NOTE: Brazil’s Azul Confirms Negotiations With Lessors
• On Friday, Azul shares rallied the most since early 2023 following a report that the carrier is nearing a deal with lessors that would entail a debt-for-equity swap
• “We view this development positively, along with a possible USD 200 mn private capital increase through the entry of an anchor investor,” Lucror Analytics’ Josseline Jenssen writes in a note
  • Notes that she remains “cautious” on the stock “pending concrete actions that would allow us to become more certain that a Chapter 11 filing will not materialize”