Azul Secures Up to R$2 Billion in Government-Backed Financing for Aviation Fuel

Azul has secured a financing facility of up to R$2.0 billion (approximately $370 million), backed by the Brazilian federal government, to support aviation fuel purchases for its domestic operations.

The financing is guaranteed through Agência Brasileira Gestora de Fundos Garantidores e Garantias (ABGF), using resources from Brazil’s Export Guarantee Fund (FGE).

Under the arrangement, net proceeds will be used exclusively to pay for aviation fuel purchased for Azul’s scheduled domestic flights, providing dedicated funding for one of the airline’s principal operating expenses.

Azul said the facility forms part of its broader financial strategy and is intended to strengthen liquidity while providing additional flexibility amid volatility in aviation fuel prices.

The financing complements the airline’s existing cash resources and other recently secured funding arrangements, supporting its ongoing operations and financial planning.

Azul did not disclose the facility’s interest rate, maturity, repayment schedule or drawdown conditions.