SAO PAULO: Brazilian airline Azul said on Tuesday it has finalized a debt restructuring process regarding financial obligations with bondholders, suppliers and plane lessors, according to a securities filing.

Azul said the process included the termination of almost $1.6 billion in debt from its balance sheet, while it also raised $525 million in fresh money.

The firm said that, with the conclusion of the talks, its financial leverage measured by a net debt to EBITDA ratio falls to 3.4 times from 4.8 times.

Brazil airline Azul hikes 2024 earnings forecast on ‘robust’ demand

Azul, which this month signed an agreement to explore talks for a merger with rival Gol, said the restructuring measures reduced its interest payments expected for this year by almost 1 billion reais ($170.7 million).

“We are very optimistic regarding Azul’s future,” Chief Executive John Rodgerson said in a press statement, adding the airline expects to receive 15 new Embraer’s E2 jets during the year.