American Airlines has completed its US$100 million investment in Brazilian carrier Azul, acquiring a 7.9% stake after exercising all subscription warrants it held. Azul’s board confirmed the resulting R$512.8 million capital increase on 20 October, with the transaction issuing 31,838,775 new common shares to American and strengthening its strategic position in Brazil without transferring control of the airline.
The exercise took place on 16 October and formed part of the recapitalisation agreed in February as Azul emerged from its US Chapter 11 restructuring. Other warrant holders also subscribed, taking the total issuance to 32,271,326 common shares and Azul’s outstanding common shares to 400,829,250.
The transaction also changes Azul’s governance. Chief executive John Rodgerson resigned from the airline’s board and strategic committee while remaining CEO. Jeff Ogar, American’s head of airline partnerships, assumed the corresponding positions. Ogar is also a director of Chilean airline JetSMART.
Brazil’s competition authority CADE approved American’s investment on 7 October under safeguards covering commercially sensitive information and the airlines’ competitive independence. The deal forms part of a broader US$200 million recapitalisation involving American and United Airlines; United completed its separate US$100 million investment for an approximately 8.6% stake in February.