After Chapter 11 bankruptcy, airline makes surprising comeback

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Veronika BondarenkoSun, February 22, 2026 at 3:24 PM GMT+1 3 min readOf the dozens of smaller and mid-range airlines that filed for bankruptcy over the last year, one of the most high-profile names is Spirit Airlines.The future of the Florida-based budget carrier known for its bright yellow livery is looking increasingly uncertain as it struggles under a second Chapter 11 filing less than a year after the first.Another major carrier to face bankruptcy is Azul Linhas Aereas, or Azul Airlines in English.Launched out of São Paulo in 2008, the budget carrier quickly grew into the third-largest airline in Brazil by offering lower fares on domestic flights within the large South American country and to select destinations in Argentina, Portugal, and the U.S.But rapid expansion, as well as a changing market driven by new competitors and rising operating costs, quickly led to a heavy debt load. In May 2025, Azul filed for Chapter 11 bankruptcy after failed efforts to raise additional funding and get lenders to wipe out $550 million in loans in exchange for equity.As the majority of its investors were foreign, the bankruptcy petition was filed in the U.S. Bankruptcy Court for the Southern District of New York.After nine months in bankruptcy proceedings, Azul revealed that it has officially emerged from the Chapter 11 process. It successfully reduced debt and lease obligations by approximately $2.5 billion USD and raised an additional $1.4 billion in debt and $950 million in equity from new investors, Reuters reported.Related: Low-cost airline to launch its first international flights to CancunAmerican Airlines put in approximately $100 million in new funds. The partnership is one of the main reasons other investors felt confident in Azul's ability to turn around and continue as a major player in the Latin American market. Analysts have also been alluding to the eventual possibility of a shared network and codeshare partnership.According to Azul's securities filing, the bankruptcy court has officially approved the reorganization plan. The airline has not commented on the bankruptcy emergence beyond the filing with the Securities and Exchange Commission (SEC).Azul Linhas Aereas is one of the biggest airlines in Brazil.Image source: Shutterstock · Image source: Shutterstock"These approvals, along with the strong support of our key financial stakeholders, including United Airlines, American Airlines, and AerCap, enable us to continue our accelerated transformation plan for the future," Azul said in a statement immediately after filing for bankruptcy in May 2025."This process will allow Azul to significantly reduce its leverage and continue to generate cash, putting it on par with its global partners."Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,837.75 -71.76 (-1.04%)Dow 3048,804.06 -821.91 (-1.66%)Nasdaq22,627.27 -258.79 (-1.13%)Russell 20002,620.99 -42.79 (-1.61%)VIX21.01 +1.92 (+10.06%)Gold5,247.90 +167.00 (+3.29%)Trending tickersIBM International Business Machines Corporation 223.35 -33.81 (-13.15%)HIMS Hims & Hers Health, Inc. 15.51 -0.12 (-0.77%)BTC-USD Bitcoin USD 64,699.75 -2,957.85 (-4.37%)NVO Novo Nordisk A/S 39.63 -7.79 (-16.43%)PYPL PayPal Holdings, Inc. 44.05 +2.40 (+5.76%)PortfolioSign in to access your portfolioSign inTop gainersACLX Arcellx, Inc. 113.75 +49.64 (+77.43%)IBRX ImmunityBio, Inc. 9.83 +1.13 (+12.99%)VRE Veris Residential, Inc. 18.81 +2.04 (+12.16%)VKTX Viking Therapeutics, Inc. 34.46 +3.43 (+11.05%)USAR USA Rare Earth, Inc. 18.79 +1.56 (+9.05%)Top losersNVO Novo Nordisk A/S 39.63 -7.79 (-16.43%)BLLN BillionToOne, Inc. 72.10 -13.32 (-15.59%)IBM International Business Machines Corporation 223.35 -33.81 (-13.15%)RNG RingCentral, Inc. 34.58 -4.92 (-12.46%)STEP StepStone Group Inc. 43.94 -6.13 (-12.24%)Most activeNVDA NVIDIA Corporation 191.55 +1.73 (+0.91%)NVO Novo Nordisk A/S 39.63 -7.79 (-16.43%)IBRX ImmunityBio, Inc. 9.83 +1.13 (+12.99%)SOFI SoFi Technologies, Inc. 18.22 -0.80 (-4.21%)PYPL PayPal Holdings, Inc. 44.05 +2.40 (+5.76%)Top economic eventsEarnings eventsMy earnings eventsEarnings events