Azul faces challenges in funding growth as investors shy away from Brazilian companies

Brazil's third largest airline Azul opted to pursue an ambitious expansion to the US with Airbus widebodies during a time of economic unrest in the country and a rapid devaluation of the BRL against the USD. Those conditions drove Azul to drop plans for an initial public offering in early 2015 - the third time the airline has opted to cancel an IPO during the last couple of years.

Azul's new flights from its Campinas headquarters to Fort Lauderdale and Orlando appear to be performing solidly, with average load factors near 90% for the first two months of 2015. But the airline could be trading yields for loads to ensure a strong showing for the start of its long-haul expansion.

Azul is also no doubt feeling pressure in its domestic performance, which still represents the bulk of its operations. High inflation and general weak conditions could continue to pressure yields for the foreseeable future, which could force Azul to push back its plans to access the public markets until 2016.