Dhaka, June 1 -- The Sao Paulo-based airline Azul filed for bankruptcy protection, initiating the Chapter 11 process at a US court.

The Brazilian airline said it would continue operating its flying schedule uninterrupted and paying employees during the financial restructuring process, which would see the company alleviate significant debt related mostly to keeping operations afloat during the Covid-19 pandemic.

The company disclosed on May 28 that it had entered "restructuring support agreements" with stakeholders, including existing bondholders, lessor AerCap and partner carriers American Airlines and United Airlines.

In total, agreements secured by Azul include USD 1.6 billion in financing to support the restructuring process, the el...