Azul Retreats as Rivals Move In for the Kill

The $200 million injection from American Airlines and United Airlines into Azul no longer appears to be a rescue for expansion, but rather a subsidy for a controlled withdrawal. As the carrier slashes its capacity by 35% to stabilize its balance sheet, its competitors have begun strategic cannibalization. In an ironic twist, LATAM and GOL are using the very tools that built Azul’s success to dismantle its hegemony.

This shift transforms Brazil into the fiercest battleground for the U.S. “Big 3.” The contest is no longer just about flight volume; it is about who controls the infrastructure and the fleet required to dominate the South American market.