SAO PAULO (Reuters) - Brazilian airline Azul SA
The airline has been in negotiations with lessors as the coronavirus crisis derailed Latin America's air travel industry in March. Azul hired a restructuring firm when the crisis set in and said it was renegotiating its debts out of court to avoid a potential Chapter 11 bankruptcy filing.
The airline now says its new agreements cover 98% of the company's leasing liabilities and has managed to reduce its rental costs by 77% between April and December of this year.
Azul said it would compensate for these discounts by paying "slightly higher" leasing costs starting in 2023.
Azul is Brazil's No. 3 airline and is controlled by David Neeleman, the founder of Jet Blue.
(Reporting by Marcelo Rochabrun; Editing by Leslie Adler)