The New Face of Latin American Airline Partnerships
Photo Credit: Latam is a prized partner for Delta Air Lines. Pictured is one of Latam's Airbus A320s. Flickr / Alexandro Dias
Skift Take
Airline partnerships connecting North and South America look different in 2020, with Delta a stronger contender in the region than ever before. Its $1.9 billion investment for a 20 percent stake in Chile’s Latam Airlines helps. Now, the question is how it will shape the industry — and the strategies of competitors like American Airlines.
The new year has brought significant changes to partnerships between U.S. and Latin America-based carriers, largely fueled by Delta’s $1.9 billion investment for a 20 percent stake in Chile-based Latam Airlines. Latam is scheduled to leave the Oneworld Alliance on May 1, ending its frequent-flier agreement with American. Delta also ended its partnership with Gol after nearly a decade, revealing it sold its stake in the carrier. Then, American announced Feb. 4 it would enter into its own codeshare partnership with Gol.
Latin America has been making positive contributions to U.S.-based carriers’ balance sheets. The International Air Transport Association, or IATA, reported that Latin American carriers were expected to lose money in 2019 largely due to economic issues, but the region has been a bright spot for U.S. carriers in recent months. American, Delta, and United all cited Latin America as the top-performing international segment in the fourth quarter, based on year-over-year
