Azul deal with lessors good news for planemaker Embraer, analysts say

A deal between Brazilian airline Azul and its lessors to swap more than $500m in obligations for an equity stake is good news for planemaker Embraer, analysts say, as it reduces concerns about the debt load of a key customer. Azul had 21 next-generation E2 jets in its fleet at the end of the first half and is awaiting delivery of more this year. "A stronger Azul means a stronger Embraer," the carrier's CE, John Rodgerson, told Reuters on Tuesday after the deal with lessors was announced. Azul agreed to give them up to 100m shares of the firm to eliminate obligations of around 3b reais ($541.16m). The carrier, which competes with LATAM and Gol in Brazil's domestic market, has centered its fleet growth plans on Embraer jets. In August, the firm said it expected to receive 15 to 18 new aircraft by the end of 2025. Azul has firm orders for 51 E195-E2 jets, according to Embraer.<br/>