American Airlines has received approval to acquire a minority stake in Brazil's Azul, where its US rival United Airlines has been a shareholder for more than a decade. The country's antitrust authority cleared the US$100 million investment on Wednesday, October 7.
The transaction will give American an 8.66% stake in Azul. United, which established its equity relationship with the Brazilian airline in 2015, received regulatory approval in February to increase its existing holding from 2.02% to approximately 8%.
The arrangement will place two competing US airlines within Azul's ownership structure, with both also entitled to representation in its corporate governance bodies.
American's investment was announced in February under Azul's financial restructuring arrangements following its Chapter 11 bankruptcy proceedings in the United States.
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The Brazilian Administrative Council for Economic Defense (CADE) had initially cleared the transaction without restrictions in July. However, Abra Group, the parent company of GOL and Avianca, appealed the decision over concerns about competition on routes between Brazil and the United States.
American faces restrictions on access to Azul information
Brazil's antitrust tribunal unanimously approved the investment, subject to a formal agreement establishing safeguards against the exchange of commercially sensitive information.
American will be entitled to appoint representatives to Azul's board of directors and Strategic Committee, which discusses business plans, network development, investments and commercial partnerships.
Under the agreement, its representatives must be excluded from discussions involving sensitive matters in markets where American and Azul compete. The restrictions cover subjects such as pricing, capacity and commercial strategy.
The agreement also requires advance notification of certain future airline investments by American and changes that could expand its influence over Azul.
Abra had argued that the presence of American and United in the same governance structure could create opportunities for coordination between competitors. The regulator concluded that the identified risks could be addressed through enforceable safeguards rather than blocking the investment.
United's relationship with Azul predates the Brazilian carrier's financial crisis. The US airline originally acquired a minority stake in 2015, alongside a commercial partnership, and maintained that investment through Azul's restructuring.
American and Azul also have an existing codeshare agreement. The new investment will add an equity relationship to their commercial cooperation, although neither US airline will acquire control of the Brazilian carrier.
Azul entered Chapter 11 protection in May 2025 and completed its restructuring in February 2026. The American investment was arranged through warrants issued under the reorganization plan.
