Azul shares follow high on Friday with WSJ news on talks with Latam creditors

SAO PAULO – Azul (AZUL4) shares continue with gains this Monday (23) after rising 2.67% last Friday (20), which reached almost 4% during the last session. At 10:59 am (Brasilia time) this Monday, AZUL4 assets rose 2.21%, to R$ 36.93.

The rise was motivated after the news of the American newspaper Wall Street Journal, citing sources, that Azul has been talking to creditors to buy the operations of rival Latam in Brazil.

According to the publication, Azul would be open to buy the entire company and then sell operations in other countries. The Brazilian company would also be open to a possible joint venture with Latam to complement its current business in Brazil, according to the newspaper’s sources.

The companies talked about a possible deal at the beginning of the bankruptcy process, but Latam interrupted the negotiations because the Chilean company’s owners did not want to give up control of the group, according to a source told the WSJ.

Latam’s different national units filed for bankruptcy last year amid the turmoil caused by the pandemic. A spokesman for Latam said the company has no intention of selling its Brazilian operation, and that the airline hopes to present its reorganization plan and exit from judicial reorganization this year.

On the other hand, with its largest cash register in history and taking advantage of the pent-up demand for travel due to the coronavirus pandemic, which mainly boosted domestic tourism in 2021, Azul has already shown its intention to buy Latam’s Brazilian operation. Live from InfoMoney, John Rodgerson, CEO of the airline, gave a message to the deputies who are analyzing the possible operation: “look at how Azul changed the country”.

Live is part of the project Inside the Results, wherein InfoMoney interviews CEOs and directors of important publicly traded companies, in Brazil or abroad. They talk about the balance sheet for the second quarter of 2021 and perspectives. To follow all the interviews in the series, subscribe to the InfoMoney YouTube channel.

Rodgerson highlighted the development of the national airline industry, part of which was stimulated by Azul’s investments in recent years. “Deputies should look at this [a aquisição da Latam pela Azul] by that context. If you look at other countries in the world, Air Canada has 70% of the Canadian air market, Avianca has 70% of the Colombian market, LAN had 85% of the Chilean market. Stop thinking that this cannot be beneficial and look at the opportunities”, said the CEO.

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