Brazilian carrier Azul has filed for Chapter 11 bankruptcy protection in the USA after securing agreements with stakeholders for $1.6 billion of debtor-in-possession financing and up to $950 million in exit funds. The carrier says it has initiated a "pre-arranged restructuring process" in the USA after reaching "restructuring support agreements" with stakeholders including its largest aircraft lessor – AerCap – as well as strategic partners United Airlines and American Airlines. The agreements, which Azul says are designed to transform its capital structure "through significant deleveraging and positive cash-flow generation", include a commitment for $1.6 billion in DIP financing, the elimination of more than $2 billion of debt and the possibility of up to $950 million in equity financing on emergence from Chapter 11. The DIP financing will be used to repay existing debts and provide the carrier with about $670 million of new capital to bolster liquidity during the restructuring process. Upon emergence from Chapter 11, the DIP financing will be repaid with the proceeds of an equity rights offering of up to $650 million, supported by a "contemplated additional equity investment" of up to $300 million from United and American. "These agreements mark a significant step forward in the transformation of our business, one that enables us to emerge as an industry leader in the main aspects of our business," states Azul chief executive John Rodgerson. "With a collaborative approach and the support of our stakeholders, we have made a strategic decision to pursue a voluntary financial restructuring as a proactive move to optimise our capital structure, which was burdened by the Covid-19 pandemic, macroeconomic headwinds and aviation supply chain issues. "Our strategy is not just about financial reorganisation. By using this process, we believe that we are creating a robust, resilient, industry-leading airline – one that customers will continue to love flying, at which crewmembers will continue to love working, and that will create value for our stakeholders." AerCap chief executive Aengus Kelly says the lessor has signed a support agreement with Azul and is "very confident" the airline will "emerge stronger than ever". United chief commercial officer Andrew Nocella says: "Azul is more than just a commercial partner for United – their customer-first approach and unique route network connecting small and large communities have improved the passenger experience in Brazil. That's why we support Azul's restructuring process and have entered into an agreement to build an even stronger relationship in the future." Azul intends to use the Chapter 11 process to reduce lease obligations and optimise its fleet, "allowing the company to emerge with greater flexibility and a more sustainable business and capital structure". It has ditched its previous guidance for 2025. The airline has been seeking ways of improving its liquidity position for some time and has been in talks with fellow Brazilian operator Gol – which itself is restructuring under Chapter 11 – over a possible merger. On 20 May, S&P Global Ratings downgraded Azul's issuer credit rating, citing the carrier's "very tight liquidity" and risk of default.

Finnair will cancel about 110 flights on 30 May because of further industrial action by the Finnish Aviation Union (IAU). The union is planning similar action to that carried out earlier in May, when a series of four-hour strikes targeted different work shifts and affected functions such as ground handling and aircraft maintenance. The IAU plans more industrial action on 2 and 4 June, which Finnair says will cause disruptions on those days as well. "We are deeply sorry that our customers' important travel plans are once again being disrupted," says Finnair chief operating officer Jaakko Schildt. "We are doing everything we can to provide our customers with alternative routing as quickly as possible." Finnair has said that ongoing industrial action cost it €22 million ($25 million) and shaved €31 million off its revenue in the first quarter of this year.

US carrier Allegiant Air will launch five new domestic routes from three airports later this year. It will begin flights from Fort Lauderdale Hollywood International airport to South Bend, Indiana on 29 August. Two new routes to be added from McGhee Tyson airport in Tennessee include Memphis, also in Tennessee, on 4 September and Key West in Florida on 3 October. Allegiant will also begin service from Gulf Shores International airport in Alabama to Appleton, Wisconsin and Des Moines, Iowa in early October. "This expansion caters to passengers and communities we feel have been overlooked by other carriers," states Allegiant chief commercial officer Drew Wells. "Allegiant's unique business model, connecting small-to-medium-sized cities to vacation destinations, creates accessible travel options not otherwise available in what we believe are underserved markets." Data shows that Allegiant will be the only airline to operate scheduled, nonstop service on all five routes.