Bond Market News

Brazil’s airline Azul SA is said to be keen on buying Chile-based bankrupt LATAM Airlines Group’s Brazil operations. Even though the airline secured liquidity when filing for bankruptcy protection last year, it has not presented formal plans of restructuring. LATAM has still not received an offer from Azul, and a LATAM spokeswoman commented that the airline had no intention of selling any of its shares. The codeshare program that Azul and LATAM Airlines had developed in response to the pandemic to avoid competing in Brazil abruptly ended this week, which Azul confirmed was a reaction to its consolidation plans. Azul and LATAM airlines share Brazil’s market, along with the third carrier Gol Linhas Aereas Inteligentes. Azul’s shares rose more than 9% in Sao Paulo after news of the planned acquisition while LATAM Airlines’ shares in Santiago fell 20%.

Latam Airline’s dollar bonds were down. Its 6.875% 2024s were down 0.88 to 94.94, yielding 7.93%.

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