Brazil reaches deals with airlines to settle tax obligations

Brazil's government said on Friday it has reached deals with two of the country's largest airlines, Gol and Azul, to settle some pending tax obligations totaling 7.5b reais ($1.22b). The government has provided the carriers with significant discounts and allowed them to make installment payments. The deal may provide financial relief to the companies. Latin American airlines have been facing financial hurdles in the wake of the COVID-19 pandemic and were forced to restructure obligations as they struggle with high debt loads. Gol has been under Chapter 11 bankruptcy protection in the U.S. since early 2024, while Azul recently struck deals with lessors to scrap obligations in exchange for an equity stake and bondholders to obtain fresh financing. Gol will pay 880m reais in up to 120 installments to settle obligations of about 5b reais, the government said in a statement, adding that it would also retain 49m reais from the firm currently deposited in a judicial account.<br/>