Delta Air Lines has acquired a 20 per cent stake in LATAM Airlines Group S.A for US$1.9 billion.
First announced back in September 2019, the partnership will see more passengers being carried between North America and Latin America than through any other deal
Delta said the investment is part of its plan to make equity investments in key airline partners globally.
“The codeshare will offer customers increased connectivity between up to 74 onward destinations in the United States and up to 51 onward destinations in South America.”– Delta Air Lines
Delta President — International and Executive Vice President — Global Sales, Steve Sear, said “We look forward to working with LATAM to create a truly world-class partnership that will give our customers unparalleled access throughout the Americas,” adding that “Equity investments like this help create alignment within our partnerships as we bring together our brands, enabling us to provide the very best service and reliability for our shared customers.”
The deal will see Delta and LATAM hold leading roles in five of the top six Latin American markets from the United States while serving 435 destinations worldwide.
In another aspect of the partnership, a commercial deal is expected to see both carries launch codesharing for flights operated by certain LATAM affiliates in Colombia, Ecuador and Peru early this year.
A statement from the Delta said “The codeshare will offer customers increased connectivity between up to 74 onward destinations in the United States and up to 51 onward destinations in South America.”
Other previously shared aspects of the partnership include:
LATAM is expected to benefit from improved free cash flow generation, reduced forecast debt of over US$2 billion by 2025 and improved capital structure to execute its long-term strategy.