American Airlines takes 7.9% of Azul after $100 million warrant deal

American Airlines finished a $100 million investment in Brazilian carrier Azul on October 19, exercising every subscription warrant it held and taking a stake of close to 8%, Aviacionline reported, citing a material fact filed by Azul.

The US carrier picked up 31,838,775 common shares through the series 1 and 4 warrants. Other holders exercising warrants across the four series accounted for a further 432,551 shares, leaving Azul with 400,829,250 common shares outstanding and putting American at 7.9%. The board signed off on a capital increase of R$512.8 million covering all warrants exercised in the window, not only American's. American's shares are headed into Azul's ADR program, which began trading on the New York Stock Exchange in July 2026.

American agreed to the investment in February 2026, as Azul worked toward leaving Chapter 11 protection in the United States.

John Rodgerson gave up his seats on Azul's board and strategic committee on October 20, a step set out in February. Jeff Ogar, his alternate, filled both. Rodgerson stays on as chief executive.

Brazil's Administrative Council for Economic Defense cleared the deal unanimously on October 7, subject to a merger control agreement. Abra, which controls Gol and Avianca, had objected, saying American and United Airlines would end up as Azul's largest individual shareholders.

This story was first reported by Aviacionline.