** Shares in Brazilian airline Azul AZUL4.SA fall after it reported its first-quarter results

** Azul reported an adjusted net loss of 1.82 billion reais ($325.08 million) for the quarter ended on March 31, deeper than the 324 million-real net loss posted a year earlier

** The carrier since last year has been seeking to restructure its debt and improve liquidity as it faces financial hurdles

** "We expect a negative stock reaction with continued pressure stemming from Azul's ongoing liability management plan and the forecasted substantial equity dilution exceeding 80%," JPMorgan analysts say

** Sao Paulo-traded Azul shares are down more than 15%, making it the biggest faller in Brazil's benchmark stock index Bovespa .BVSP, which slips 0.2%

** Year-to-date, Azul's shares fall 66%

($1 = 5.5987 reais)

(Reporting by Alberto Alerigi Jr and Isabel Teles)

((Isabel.Teles@thomsonreuters.com;))