Delta (DAL) Expands Codeshare Agreement With LATAM Airlines

To boost connectivity between North and South America, Delta Air Lines (NYSE:DAL) DAL broadened the scope of its codesharing deal with LATAM Airlines (OTC:LTMAQ) Group. Following the expansion, more than 20 international routes are added between the United States and South America.

Currently carrying a Zacks Rank #4 (Sell), Delta is putting its code on 12 international routes operated by the LATAM group across the continents. Moreover, DAL is adding its code to six interregional routes in South America and four new domestic destinations in Chile. In turn, LATAM is putting its code on eight international routes (operated by DAL) connecting South America and the United States.

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The new routes covered following the expansion include Atlanta- São Paulo (operated by Delta) and Boston - São Paulo (operated by LATAM). Following the expanded deal, customers will be able to earn and redeem miles/points apart from accruing qualifying points in their frequent flyer programs.

A codeshare deal enables flight-sharing whereby a passenger has the free will to avail any flight operated by either of the companies under the agreement, irrespective of the flight number. With international travel demand gradually improving as countries reopen their borders to vaccinated travelers, the codeshare agreement should help boost traffic for DAL.

With air-travel demand gradually picking up, other carriers also inked code-sharing deals this year to bolster global connectivity.

Let’s have a quick look at some code-sharing contracts inked this year.

In November, Alaska Air (NYSE:ALK) Group’s (ALK) subsidiary Alaska Airlines announced a codeshare agreement with British Airways, thus expanding its partnership with the latter, a member of the oneworld alliance. ALK currently carries a Zacks Rank #3 (Hold).

The codeshare pact with British Airways gives Alaska Airlines access to 16 additional markets. Through this move, its network beyond Seattle, San Francisco and Los Angeles will be connected to British Airways' nonstop services from London Heathrow.

In September, United Airlines UAL struck a new codeshare deal with the South African carrier Airlink. The deal will offer one-stop connection from the United States to more than 40 destinations in Southern Africa. UAL currently carries a Zacks Rank of 3.

United Airlines will be the first airline to connect its loyalty program with Airlink, allowing MileagePlus members to earn and redeem miles when they travel on the Airlink flights. This is in addition to the carrier’s existing partnership with the Star Alliance member South African Airways.

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