08:24 AM EST, 01/09/2025 (MT Newswires) -- (Updates with Azul's ( AZUL ) response in the final paragraph.)

Azul ( AZUL ) and Abra, the parent company of Gol, are expected to sign a memorandum of understanding for the potential merger of the two Brazilian airlines, news outlet Valor Economico reported Wednesday.

The objective of the memorandum is to discuss details that could pertain to the deal, the report said.

Azul ( AZUL ) declined to comment when contacted by MT Newswires, while Gol did not immediately respond to a request for comment.

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