Why Azul Shares Flew Sky-High on Monday

On Friday, Brazil's state development bank said that the massive South American country's top three air carriers accepted an aid package worth 4 billion reais ($683 million) in total. There is some confusion about this: Subsequent to the announcement, all three denied they had given their assent.

Regardless, as negotiations on the matter were dragging for weeks, news of its possible closing came as a big relief to investors. The no. 3 out of that trio, budget carrier Azul (NYSE: AZUL), saw its shares climb by almost 33% higher on Monday.

Image source: Azul SA.