United Airlines and American Airlines—despite being fierce competitors in the U.S. market—are joining forces to support Brazilian carrier Azul in its restructuring process following its recent bankruptcy filing.
This strategic move reflects the growing interest of major U.S. airlines in expanding their reach in Brazil, the largest country in Latin America. The support from American Airlines is particularly noteworthy given its existing partnership with local rival Gol, which is also emerging from its own Chapter 11 proceedings.
According to a securities filing by Azul, United and American are prepared to invest up to $300 million in a share offering that would repay Azul’s debtor-in-possession financing once it exits bankruptcy.
“They believe in Azul’s long-term viability, in our network strategy, and in what we’ve built,” Azul CEO John Rodgerson told Reuters. “Brazil is going to be very important for both United and American.”
The agreement outlines that both U.S. carriers will have codeshare deals with Azul and are expected to take seats on the Brazilian airline’s board once it emerges from Chapter 11 protection.
Azul filed for Chapter 11 bankruptcy in the United States on Wednesday, following similar paths taken by Gol and LATAM Airlines. The move comes after several months of unsuccessful efforts to restructure debts, most of which date back to the pandemic period.
Rodgerson noted that while both United and American have well-established networks across Latin America, their connections to Brazil target different U.S. cities. United, for example, operates flights from São Paulo to Chicago, Houston, Newark, and Washington, while American connects São Paulo to Dallas, Miami, and New York’s JFK airport.
United has been a stakeholder in Azul since 2015, when it purchased a stake as part of a broader plan to strengthen its presence in South America’s largest aviation market.
Andrew Nocella, United’s Chief Commercial Officer, emphasized that this new partnership presents a strong opportunity to deepen the company’s collaboration with Azul.
Meanwhile, American Airlines has been a long-standing partner of Gol, a carrier that currently holds around 30% of Brazil’s domestic aviation market—a figure similar to Azul’s share. Gol tends to focus on major hubs such as São Paulo, Rio de Janeiro, and Brasília, whereas Azul serves a broader network of destinations throughout the country.
Stephen Johnson, American Airlines’ Chief Strategy Officer, confirmed that Gol remains a key partner but also praised Azul’s restructuring efforts, calling them “extremely positive for Brazil’s aviation market.”
The joint involvement of these U.S. giants signals renewed confidence in Brazil’s aviation sector, which has faced significant financial challenges in recent years. With Azul aiming to emerge from bankruptcy as a stronger player, United and American are positioning themselves to benefit from the expected rebound in one of the world’s most critical air travel markets.