Category Archives: LATAM Airlines (Brazil)

LATAM Airlines Group and Delta Air Lines expand codeshare agreement

LATAM Airlines Group and Delta Air Lines announced the expansion of their codeshare agreements today, which will allow their customers to access more than 20 international routes between the United States and South America, along with connections to domestic and intra-continental destinations. It will also allow LATAM Airlines Group to add eight new international routes operated by Delta between South America and the U.S., and 11 domestic destinations in the U.S. from Atlanta. Delta will add 12 international routes operated by LATAM Airlines Group between South America and the U.S., connecting from Miami, Orlando, New York (JFK) and Los Angeles (LAX); as well as seven interregional routes in South America, and four new domestic destinations in Chile.

This announcement will benefit customers with more connections between both regions: more than 40 destinations in South America, including domestic routes in Brazil, Chile, Colombia, Ecuador and Peru; routes within South America, between South America and the U.S.; and more than 70 domestic routes within the U.S. Additionally, Delta Air Lines and LATAM will complement their existing codeshare network in the coming months with new routes to Delta destinations in the U.S., and between the U.S. and Canada.

The agreement between LATAM and Delta currently allows LATAM Passยฎ and SkyMilesยฎ members to accumulate miles/points in their respective frequent flyer programs, including priority boarding, extra baggage check-in, and VIP lounge access for select categories. Customers will be able to easily connect between Delta and LATAM flights at airports where the airlines have relocated to the same terminal. This includes Terminal 4 at John F. Kennedy International Airport (New York), Terminal 3 at Guarulhos Airport in Sรฃo Paulo and soon Terminal 2 at Arturo Merino Benitez International Airport in Santiago, Chile.

New Codeshare Routes Between LATAM Airlines Group and Delta*

Between the U.S. and South America

Cities

Operated by

Atlanta – Sรฃo Paulo/Guarulhos

Delta

New York/JFK – Sรฃo Paulo/Guarulhos

Delta / LATAM

Miami – Sรฃo Paulo/Guarulhosย 

LATAM

Orlando – Sรฃo Paulo/Guarulhos

LATAM

Atlanta – Rio de Janeiro/Galeรฃo**

Delta

Atlanta – Bogotรก

Delta

Miami โ€“ Bogotรก – Santiago

LATAM

New York/JFK – Bogotรก

Delta

Atlanta – Lima

Delta

Los Angeles โ€“ Lima

LATAM

Miami – Lima

LATAM

New York /JFKโ€“ Lima

LATAM

Orlando โ€“ Lima

LATAM

Atlanta – Santiago

Delta

Los รngeles โ€“ Santiago

LATAM

Miami โ€“ Santiago

LATAM

New York /JFK โ€“ Santiago

LATAM

Atlanta – Quito

Delta

Connecting U.S. Domestic Routes

Atlanta- Austin

Delta

Atlanta – Boston

Delta

Atlanta – Baltimore

Delta

Atlanta – Charlotte

Delta

Atlanta – Washington

Delta

Atlanta – Denver

Delta

Atlanta – Dallas

Delta

Atlanta – New York /JFK

Delta

Atlanta – Fort Lauderdale

Delta

Atlanta – Honolulu

Delta

Atlanta – Houston

Delta

Connecting Regional Routes in South America Operated by LATAM Airlines Group

Santiago โ€“ Bogotรก

Santiago โ€“ Lima

Santiago โ€“ Montevideoย 

Santiago โ€“ Rio de Janeiro

Santiago – Sรฃo Paulo/Guarulhos

Sรฃo Paulo/Guarulhos โ€“ Montevideo

Connecting Chile Domestic Routes Operated by LATAM Airlines Group

Santiago – Antofagasta

Santiago โ€“ Concepciรณnย 

Santiago โ€“ Puerto Monttย 

Santiago โ€“ Punta Arenasย 

 

*Codeshare flights are available for booking travel beginning Nov. 18.

*The Atlanta – Rio de Janeiro route will resume on Feb. 22, 2022.

LATAM Group receives offers for bankruptcy reorganization exit financing

LATAM Airlines Group S.A. and certain of its debtor affiliates in Brazil, Chile, Colombia, Ecuador, the United States and Peru (collectively, โ€œLATAMโ€) released its five-year business plan along with advances regarding its exit financing process today. This milestone marks one of the final stages before the presentation of its plan of reorganization. LATAM forecasts recovering 2019 profitability by 2024, and a 78% operational result increase by 2026 when compared to pre-crisis.

As part of its exit financing process, LATAM has received several offers to date from its most significant claim holders and its majority shareholders, each of which provides more than US$ 5 billion of new funds, reaffirming the market’s confidence in LATAM.

LATAM Business Plan Highlights

The business plan includes a vision of the demand recovery, the fleet plan, and financial and operational projections through 2026, in addition to other information. In particular, the group forecasts a return to pre-pandemic capacity (measured in ASKs) by 2024 and a growth of 7% by 2026, compared to 2019, resulting from an estimated recovery of the domestic markets by 2022 and the international ones by 2024, in line with market consensus.

The recovery is supported by LATAM Airlines Brazilโ€™s domestic marketโ€™s operational ramp-up to date, which reached a capacity (measured in ASKs) of 77% in August, compared to 2019, and is forecast to surpass 100% of 2019 levels in the beginning of 2022. The domestic markets of the affiliates in Colombia, Ecuador, Peru andย  Chile have already reached 72% in August, while the international recovery of the group, both regional and long-haul continues to be affected by travel restrictions.

Total revenues are projected to increase 13% by 2026 with passenger revenues growing 8% and cargo revenues increasingย  59% compared to 2019.

Cost reduction initiatives addressed during the Chapter 11 process, including leveraging LATAMโ€™s digital transformation to improve efficiency, supplier renegotiations and fleet restructuring, amount to over US$900 million annually and have allowed LATAM to structurally change its cost base. Fleet costs alone note annual cash cost savings of over 40% compared to 2019. The group also expects improvements in its passenger CASK (cost per ASK) ex-fuel, which before the impact of inflation, is estimated to be 3.3 cents in 2024, with certain domestic operations even lower. Furthermore, LATAM has increased the variable portion of its cost structure from 65% in 2019 to 80% in 2021-2022, which will allow the group to better adapt to the nonlinear demand recovery path ahead.

LATAM projects an operating margin (EBIT) of 11.2% in 2026, the highest since 2010.

โ€œDespite the dramatic crisis we have faced, we have taken full advantage of our restructuring, not only by becoming substantially more efficient, but also by cementing a better value proposition for customers, all of which has been reaffirmed by the significant interest we have received in providing exit financingโ€ said LATAM Airlines Group SA, CEO Roberto Alvo. “We will emerge from this process as a highly competitive and sustainable group of airlines, with a very efficient cost structure, all the while maintaining the unparalleled network and connectivity that LATAM offers in all the markets it serves.”

Extension of Exclusivity Period Request

LATAM filed a motion seeking to extend the period of exclusivity to file a plan of reorganization through October 15, 2021, and to solicit acceptances of a plan through December 15, 2021.ย  The requested extensions will further LATAMโ€™s development of a plan of reorganization that satisfies its exit capital and financing needs and assist in negotiations with the various stakeholders in its Chapter 11 proceedings.

Update on LATAMโ€™s Chapter 11 Process

LATAM is currently negotiating with various stakeholders in order to agree on a plan of reorganization and exit financing to successfully emerge from Chapter 11 in compliance with all applicable laws.

Over the last few months, as part of the Chapter 11 process, LATAM has developed and made available certain material non-public information to stakeholders that are under non-disclosure agreements. Such information includes five-year projections and an initial estimate (high and low scenarios) of its total claims. This initial estimate amounts to approximately US$ 8 billion in the low scenario (US$14.2 billion including inter company claims) and US$ 9.9 billion in the high scenario (US$16 billion including inter company claims).

In accordance with the terms of these non-disclosure agreements and in furtherance of the process, LATAM has made certain disclosures today by the issuance of material facts in Chile and by the filing of Forms 6-K in the United States, which include LATAMโ€™s financial projections, and other information regarding the Chapter 11 proceedings.

Also, in connection with these negotiations, LATAM provided an indicative proposed structure for its reorganization which sought approximately US $5 billion of equity financing and contemplated a consensual plan among stakeholders which required, among other things, the compromise by stakeholders of certain rights and compliance with both US Bankruptcy Code and Chilean law. In response to its request for proposals, LATAM has received certain non-binding exit capital/financing and restructuring proposals from its most significant claim holders and its majority shareholders. Eachย  proposal contemplates raising in excess of US$ 5 billion through the issuance of new debt and equity in LATAM Airlines Group S.A., which would be backstopped by the parties making the proposal. In addition, in each proposal, the proponents contemplate that if such proposal is approved and implemented, it would result in the substantial dilution of existing shares of LATAM Airlines Group S.A.

 

LATAM will continue to engage regarding the proposals with the proponents and other stakeholders, some of whom have agreed to remain under confidentiality agreements. LATAM is focused on ensuring that any exit strategy allows it to emerge with a robust capital structure, adequate liquidity, and the ability to successfully execute its business plan. Any plan will be implemented in compliance with the relevant requirements of the US Bankruptcy Code and Chilean law.

 

LATAM will keep its shareholders and the market informed regarding the progress in the Chapter 11 proceedings. Additionally, it contemplates summoning its shareholders to an extraordinary shareholders meeting when appropriate, subject to the progress of the negotiations with the various stakeholders which are currently ongoing.

LATAM projects an operation of 46% in July, the highest since the beginning of the pandemic

LATAM Group has issued this statement:

LATAM’s passenger operation for July 2021 is estimated to reach 46% (measured in available seat kilometers – ASK) compared to the same month in 2019, in a pre-pandemic context. This figure represents the largest operation projected since the beginning of the health crisis caused by SARS-CoV-2 and a significant increase from Juneโ€™s operation of 36.9%. The challenge going forward, however, is the reactivation of markets like Chile and Ecuador, which register the lowest operational recovery of all of the countries in which the group operates. LATAM estimates approximately 880 domestic and international flights daily during July, connecting 116 destinations in 16 countries. Meanwhile, the Cargo division has scheduled 1,030 cargo freighter flights during the period, 20% more than in the same month of 2019. All of these projections are subject to the evolution of the pandemic, as well as travel restrictions in the countries where LATAM operates. During June 2021, passenger traffic (measured in revenue passenger-kilometers – RPK) was 32.1% compared to the same period of 2019, based on an operation measured in ASK (available seat-kilometers) of 36.9% compared to June 2019. Therefore, the load factor decreased 10.8 percentage points, reaching 72.2%. With regard to the cargo operations, the load factor was 62.8%, which corresponds to an increase of 7.7 percentage points compared to June 2019.

LATAM Group Operational Estimate – July 2021 (measured in ASK)

Brazil โ— 48% projected operation (versus July 2019) โ—‹ 75% domestic and 20% international โ— Total July destinations: 44 domestic (equivalent to 418 daily flights on average) and 13 international. โ—‹ Updates: โ–  Domestic: 10 new routes: Rรญo/Santos Dumont-Recife, Rรญo/Santos Dumont-Maceiรณ, Rรญo/Santos Dumont-Natal, Sรฃo Paulo/Congonhas-Fortaleza, Sรฃo Paulo/Congonhas-Maceiรณ, Sรฃo Paulo/Congonhas-Natal, Sรฃo Paulo/Congonhas-Recife, Fortaleza-Belรฉm, Fortaleza-Manaus, Fortaleza-Teresina. โ–  International: Restart routes Sรฃo Paulo/Guarulhos-Paris and Sรฃo Paulo/Guarulhos-Bogotรก.

Chile โ— 35% projected operation (versus July 2019) โ—‹ 68% domestic and 21% international โ— Total July destinations: 15 domestic (equivalent to 122 daily flights on average) and 14 international. โ—‹ Updates: Restart route Santiago-New York (direct)

Colombia โ— 76% projected operation (versus July 2019) โ—‹ 98% domestic and 50% international โ— Total July destinations: 15 domestic (equivalent to 136 daily flights on average) and 4 international. โ—‹ Updates: โ–  Domestic: New route Medellรญn-Cรบcuta. โ–  International: Restart route Bogotรก-Sรฃo Paulo/Guarulhos.

Ecuador โ— 23% projected operation (versus July 2019) โ—‹ 82% domestic and 7% international โ— Total July destinations: 7 domestic (equivalent to 22 daily flights on average) and 2 international.

Peru โ— 45% projected operation (versus July 2019) โ—‹ 66% domestic and 38% international โ— Total July destinations: 19 domestic (equivalent to 126 daily flights on average) and 17 international. โ—‹ Updates: โ–  Domestic: New route Arequipa-Cusco. โ–  International: Restart Lima-Madrid and Lima-Orlando operations.

Cargo โ— 75% projected operation (versus July 2019) โ—‹ 63% domestic belly and 50% international belly* โ—‹ 126% dedicated cargo * Belly: merchandise transported in the cargo hold (lower deck) of the aircraft

Azul ends its codeshare agreement with LATAM, will pursue merger opportunities

"La Belle Azul" pink livery for breast cancer awareness

Azul issued this statement:

Azul, the largest airline inย Brazilย in terms of destinations and departures updates the market on its codeshare with LATAM and possible industry consolidation.

Azul believes that consolidation is an important part of the post-pandemic industry response and the Company is in a strong position to drive that consolidation.ย  The Company has hired advisors and is actively exploring industry consolidation opportunities in the region.

โ€œThe codeshare with LATAM was a unique solution in our pandemic response.ย  We also realized that industry consolidation would be important for the post-pandemic recovery and Azul would be a key part of any such activity.ย  At the end of the first quarter of 2021 we hired financial advisors and are actively exploring consolidation opportunities.ย  We believe the cancelation of the codeshare by LATAM is a reaction to that process,โ€ says John Rodgerson, CEO of Azul.ย  โ€œAzul is emerging from this crisis in a leadership position in terms of liquidity, network recovery and competitive advantages.ย  Our plans are unchanged and I am confident that we are in the best position to pursue strategic alternatives at this point in time,โ€ says Rodgerson.

Azul will keep the market update of any developments.

Azul Route Map:

Top Copyright Photo: Azul Brasil (Azul Linhas Aereas Brasileiras) Airbus A330-941 F-WWYO (PR-ANV) (msn 1952) TLS (Eurospot). Image: 952080.

Azul aircraft slide show:

LATAM Group announces that it will be zero waste to landfill by 2027 and carbon neutral by 2050

LATAM Airlines (Chile) Boeing 787-9 Dreamliner CC-BGD (msn 35322) FRA (Marcelo F. De Biasi). Image: 939889.

LATAM Group made this announcement today:

Achieving carbon neutrality by 2050, zero waste to landfill by 2027 and protecting iconic ecosystems in South America, are some of the commitments that are part of the LATAM Group Sustainability Strategy, launched today.

โ€œWe are facing a critical moment in the history of humanity, with a serious climate crisis and a pandemic that has changed our society. Today, it is not enough to do the usual. As a group we have the responsibility to go further in the search for collective solutions. We want to be an actor that promotes the social, environmental and economic development of the region; therefore, we are assuming a commitment that seeks to contribute to the conservation of ecosystems and the well-being of the people of South America, making it a better place for all of them,โ€ said Roberto Alvo, CEO of LATAM Airlines Group.

One of the most important announcements was the first stage of a collaboration with The Nature Conservancy (TNC), to plan conservation and reforestation actions in iconic ecosystems in the region. TNC is a global environmental organization that works based on science, creating solutions for the most urgent challenges of our planet, so that nature and people may prosper together.

โ€œWith more than 35 years of experience in Latin America, our scientific studies have shown that forest restoration and regeneration can efficiently contribute to the Nationally Determined Contributionsโ€™ (NDCs) goals. TNC believes that multisectorial collaboration accelerates the implementation of nature-based solutions to mitigate the impacts of climate change, protect biodiversity, and develop a more prosperous future for people in the region,โ€ said Ian Thompson, Executive Director of The Nature Conservancy (TNC) Brazil.

A strategy for the next 30 years

The sustainability strategy for the next 30 years includes four pillars of work: environmental management, climate change, circular economy and shared value. The lines of action were designed collaboratively with experts and environmental organizations from across the region.

Regarding the climate change pillar, the group announced that it will work to reduce its emissions through the incorporation of sustainable fuels and new aviation technologies that are expected to be available beginning 2035. โ€œThe environment cannot wait 15 years to have the necessary technologies to reduce emissions. This is why we will work in parallel to promote these transformations and offset our emissions through nature-based solutions,โ€ said Roberto Alvo, CEO of LATAM Airlines Group.

Through the development of a portfolio of conservation projects and other initiatives, LATAM Group will contribute to offset 50% of its domestic emissions by 2030, establishing a path to be carbon neutral by 2050. It will intervene in iconic ecosystems of South America, such as the Amazon, the Chaco, the Llanos of Orinoco, the Atlantic forest and El Cerrado, among others.

Additionally, LATAM Group will promote a program that will allow passengers, corporate and cargo customers the option of offsetting the CO2 emissions associated with their trips. In parallel, the group will offset the same amount of CO2 emissions as customers under the 1+1 program.

In circular economy, LATAM Group is committed to promoting a culture of elimination, reduction, reuse and recycling throughout the operation, in order to reach 2027 as a group that generates zero waste to landfill. To do this, single-use plastics will be eliminated before 2023 and the on-board recycling program will be expanded on all domestic routes of the LATAM Group, and all LATAM lounges will be made 100% sustainable. Similarly, the group will implement a uniform recycling program in all countries and a plan to replace materials on board with compostable, recyclable or certified items.

As part of the shared value pillar, the group will expand its capacity to transport cargo and people for health programs, natural disasters and environmental care. It should be remembered that since the beginning of the pandemic, thanks to the Solidarity Plane program, there has been the transportation of more than 29.4 million vaccines free of charge in its subsidiaries, more than 1,400 health professionals, over 490 tons of medical supplies and more than 1,500 organs and tissues in South America. At the same time, the program has confirmed 10 transports of stem cells for patients with blood cancer.

Lastly, in the case of environmental management, LATAM Group will implement a transparent and auditable system that will allow it to take into account environmental variables in all the group’s processes, which will have environmental certification (IEnvA) throughout its operation, a reference in the industry, and that is granted by the International Air Transport Association (IATA).

Top Copyright Photo: LATAM Airlines (Chile) Boeing 787-9 Dreamliner CC-BGD (msn 35322) FRA (Marcelo F. De Biasi). Image: 939889.

LATAM aircraft slide show (Chile):

LATAM to continue transporting COVID-19 vaccines at no cost within the countries where it operates throughout 2021

LATAM Cargo (Colombia) Boeing 767-316F ER WL N532LA (msn 30780) MIA (Brian McDonough). Image: 948957.

LATAM has issued this statement:

LATAM Airlines Group reported that it will continue to transport vaccines at no cost within the countries where it operates throughout 2021 through its Solidarity Plane program.

To date, the group has transported over 23.7 million vaccines against COVID-19 within South America, through more than 300 flights in the domestic markets of Brazil, Chile, Ecuador and Peru.

More than 50 towns have benefited from the doses, including those located in difficult access points including Easter Island in Chile, Galapagos in Ecuador, Iquitos in Peru. In Brazil, doses have been moved to all states, as a result of the countryโ€™s current health crisis.

After the arrival of the first shipments of vaccines to the region in December 2020, LATAM made the free transport of doses available to the authorities of the governments of the countries where it has domestic operations.

Since the beginning of the pandemic to date, Solidarity Plane has transported more than 480 tons of medical supplies, benefiting Argentina, Brazil, Chile, Colombia, Ecuador and Peru. At the same time, more than 1.400 organs and tissues were mobilized within South America and the transfer of stem cells was carried out for ten people with blood cancer, who were able to receive a second chance at life. In passenger transport, more than 1.300 health professionals were able to travel to meet different needs related to Covid-19 in the countries that LATAM operates with domestic flights.

Through LATAM Cargo, the group has transported over 48 million vaccines to South America and within the countries in which it operates. LATAM Cargo is the first airline in the American continent, and the only one in the region, to obtain the CEIV Pharma (IATA) certification. This voluntary certificate internationally certifies that facilities, equipment, operations and personnel meet all applicable standards, regulations and guidelines expected by pharmaceutical manufacturers

Last week, LATAM announced plans to continue transporting vaccines at no cost within the countries where it operates throughout 2021.

Top Copyright Photo: LATAM Cargo (Colombia) Boeing 767-316F ER WL N532LA (msn 30780) MIA (Brian McDonough). Image: 948957.

LATAM Airlines aircraft slide show:

 

LATAM will continue to transport vaccines free

LATAM Airlines Group reported that it will continue to transport vaccines at no cost within the countries where it operates throughout 2021 through its Solidarity Plane program. To date, the group has transported over 23.7 million vaccines against COVID-19 within South America, through more than 300 flights in the domestic markets of Brazil, Chile, Ecuador and Peru.

More than 50 towns have benefited from the doses, including those located in difficult access points including Easter Island in Chile, Galapagos in Ecuador, Iquitos in Peru. In Brazil, doses have been moved to all states, as a result of the countryโ€™s current health crisis.

After the arrival of the first shipments of vaccines to the region in December 2020, LATAM made the free transport of doses available to the authorities of the governments of the countries where it has domestic operations.

Since the beginning of the pandemic to date, Solidarity Plane has transported more than 480 tons of medical supplies, benefiting Argentina, Brazil, Chile, Colombia, Ecuador and Peru. At the same time, more than 1,400 organs and tissues were mobilized within South America and the transfer of stem cells was carried out for ten people with blood cancer, who were able to receive a second chance at life. In passenger transport, more than 1.300 health professionals were able to travel to meet different needs related to Covid-19 in the countries that LATAM operates with domestic flights.

Through LATAM Cargo, the group has transported over 48 million vaccines to South America and within the countries in which it operates. LATAM Cargo is the first airline in the American continent, and the only one in the region, to obtain the CEIV Pharma (IATA) certification. This voluntary certificate internationally certifies that facilities, equipment, operations and personnel meet all applicable standards, regulations and guidelines expected by pharmaceutical manufacturers.

LATAM Group adjusts operational projection to 25% in April

Delivered on December 23, 2019

LATAM estimates the passenger operation in April 2021 to reach 25% (measured in available seat kilometers – ASK) compared to the same month in 2019 and a pre-pandemic context. This operational projection is in line with the demand, which has been affected by new border closures and passenger travel restrictions due to the current impact of COVID-19 in the region.

The group plans to operate approximately 400 daily domestic and international flights this month, connecting 114 destinations in 15 countries. Meanwhile, in the Cargo Division, there are more than 1,150 cargo freighter flights scheduled.

All projections are subject to the evolution of the pandemic, as well as travel restrictions in the countries where LATAM operates.

During March 2021, passenger traffic (measured in revenue passenger-kilometers – RPK) was 22.6% in relation to the same period in 2019, based on an operation of 31.5% (measured in available seat-kilometers – ASK) compared to March 2019. As a result, the load factor decreased 23.3% percentage points to 59.5%.

With regard to the cargo operation, the load factor in March reached 67.2%, 9.1 percentage points higher than the same month of 2019.

LATAM Group Operational Estimate – April 2021 (measured in ASK):

Brazil โ— 27% projected operation (versus April 2019) โ—‹ 38% domestic and 16% international โ— Total April routes: 72 domestic (equivalent to 190 daily flights) and 9 international.

Chile โ— 18% projected operation (versus April 2019) โ—‹ 50% domestic and 5% international โ— Total April routes: 17 domestic (equivalent to 66 daily flights) and 11 international.

Colombia โ— 64% projected operation (versus April 2019) โ—‹ 107% domestic and 26% international โ— Total April routes: 23 domestic (equivalent to 99 daily flights) and 2 international.

Ecuador โ— 20% projected operation (versus April 2019) โ—‹ 54% domestic and 11% international โ— Total April routes: 6 domestic (equivalent to 14 daily flights) and 3 international.

Peru โ— 31% projected operation (versus April 2019)โ—‹ 48% domestic and 25% international โ— Total April routes: 18 domestic (equivalent to 67 daily flights) and 15 international.

Cargo Division โ— 78% projected operation (versus April 2019) โ—‹ 61% domestic belly y 36% international belly* โ—‹ 128% freighter

*Belly: goods transported in the cargo hold (lower deck) of the aircraft.

Top Copyright Photo: LATAM Airlines (Chile) Boeing 787-9 Dreamliner CC-BGP (msn 38469) LAX (Michael B. Ing). Image: 953352.

LATAM Airlines aircraft slide show:

Delta and LATAM receive final approval in Brazil for Joint Venture agreement

Delta Air Lines also made this announcement:

  • More and improved travel options, shorter connection times and new routes between North America and Brazil will be just some of the benefits for customers.
  • The Joint Venture agreement has also been authorized in Uruguay while the application process continues in the U.S., Chile and other jurisdictions.

Delta Air Lines andย LATAMย have received final approval, without conditions, of their commercial agreement (โ€œtrans-American Joint Venture agreementโ€ or โ€œJVAโ€) by the Brazilian competition authority – the Administrative Council for Economic Defense –ย after initial approval was granted in September 2020. The JVA seeks to enhance the route networks served by both airlines, delivering a seamless travel experience between North and South America. The Delta-LATAM agreement has also been approved in Uruguay while the application process continues in other countries, including Chile.

โ€œThis final approval in Brazil furthers our mission to provide customers in this important market with the world-class travel experience and options they deserve,โ€ said Delta CEO Ed Bastian. โ€œMoving forward, we will continue working with LATAM to unlock more benefits for our customers and create the premier airline alliance of the Americas.โ€

LATAM Airlines Group CEO Roberto Alvo added, โ€œThis ruling ย reinforces the benefits of this type of agreement for travelers and enables us to advance in our commitment to delivering greater and better connectivity between South America and the world.โ€

The ratification by the Brazilian authority supports the work of both airlines to deliver a broader and more competitive network of benefits for their customers that will include, among others:

  • Code-share agreements between Delta and certain subsidiaries of the LATAM group, which allow the purchase of tickets to a larger network of destinations.
  • Members of the Delta SkyMiles and LATAM Pass programs can redeem points / miles on both airlines, accessing more than 435 destinations around the world.
  • Shared terminals and faster connections at Terminal 4 of New Yorkโ€™s John F. Kennedy International Airport (JFK) and at Terminal 3 of Sรฃo Pauloโ€™s Guarulhos Airport.
  • Reciprocal lounge access: Customers can access 35 Delta Sky Club lounges in the United States and five LATAM VIP lounges in South America.

Qatar Airways expands its South America connectivity

Qatar Airways has announced it has increased Sรฃo Paulo services to 10 weekly flightsย and expanded codeshare cooperation with LATAM Airlines Brazil optimizing connectivity for both airlineโ€™s passengers to and from destinations in Asia, the Middle East and South America. The new codeshare agreement will further strengthen the two airlinesโ€™ strategic partnership, first initiated in 2016 and recently expanded in June 2019.

The expanded agreement will allow Qatar Airways passengers to book travel on 45 additional LATAM Airlines Brazil flights and to access over 40 domestic and international destinations on the South American carrierโ€™s network, including Brasilia, Curitiba, Porto Velho, Rio Branco, Rio de Janeiro, Sรฃo Josรฉ, Lima (Peru), Montevideo (Uruguay) and Santiago (Chile).