(Reuters) -Brazilian airline Azul ( AZUL ) is set to file for Chapter 11 bankruptcy protection in the United States as soon as Tuesday, newspaper Valor Economico reported, citing sources.

The move would make the carrier the latest in a series of Latin American airlines to file for bankruptcy in the aftermath of the depression the industry suffered in the initial months of the COVID-19 pandemic.

Azul's ( AZUL ) move would follow in the footsteps of Aeromexico, Colombia-based Avianca and its two largest rivals, Gol and LATAM Airlines, all of which succumbed to bankruptcy proceedings in recent years.

Azul ( AZUL ) last year struck a deal with lessors to scrap $550 million in debt in exchange for an equity stake of around 20%, as well as one with bondholders to raise additional financing, but its balance sheet remained severely pressured.

Azul's ( AZUL ) net debt soared 50% year-on-year by the end of the first quarter to 31.35 billion reais ($5.56 billion), with its leverage ratio hitting 5.2, up from 3.7 a year earlier.

($1 = 5.6377 reais)