Delta strengthens its global partnership strategy
Investments in Virgin Atlantic, Aeromexico and LATAM reinforce the global strategy that
fueled record growth before the pandemic
ATLANTA, December 13, 2021 – Delta Air Lines (NYSE: DAL) will invest in Virgin Atlantic, Aeromexico and LATAM as partner airlines transform their businesses to emerge from the global pandemic stronger and more resilient. These investments strengthen Delta’s global platform that provides customers with an enhanced network, seamless connectivity and a high experience, while fueling business growth for Delta, its employees and partners.
Prior to the pandemic, Delta was experiencing record international growth attributed to a combination of organic growth and its global network of partners. Over the past 10 years, Delta has built leading partnerships with leading airlines in Europe, Asia and Latin America. As demand for international travel returns, the connectivity, relevance and breadth of Delta’s global network with its partners remains critical to continued success.
“These strategic investments in our partners will transform our ability to enhance the travel experience for our customers, enabling us to deliver a seamless travel experience while providing our customers with an unrivaled network between North America and the markets of leading in the world, ”said Ed Bastian, CEO of Delta. . “The work each of our partners has done to strengthen their businesses for the future makes these partnerships even more valuable and creates a new era of international travel to benefit our customers, employees and investors as global travel rebound in 2022 and beyond. ”
To support its global future, Delta is investing in Virgin Atlantic, Aeromexico and LATAM as each carrier emerges from a restructuring or recapitalization. At the end of their respective processes, Delta aims for a 20% stake in Aeromexico and a 10% stake in LATAM. In addition, Delta will retain its 49% interest in Virgin Atlantic. The airline’s investment in these carriers will be approximately $ 1.2 billion.
With new widebody on the way, record hires and significant investments in international readiness, Delta is well positioned to lead the industry through the ongoing recovery. Delta’s partnerships with Virgin Atlantic, Aeromexico and LATAM expand this growth potential, helping to fuel route additions, customer connectivity and associated job creation:
|Aeromexico:The airlines’ existing Joint Cooperation Agreement (JCA) was launched in 2017. Over the past four years, Delta and Aeromexico have built a leading cross-border network of more than 40 popular business and leisure routes to from their main hubs and offering the most services in the largest markets of New York and Los Angeles.|
|LATAM: Delta and LATAM’s trans-American joint venture agreement will combine carriers’ highly complementary route networks between North and South America. Following the approval of the JV by the Chilean court in October this year, Delta and LATAM extended their existing codeshare to improve connectivity between North America and South America.|
|Atlantic Virgo: Delta’s joint venture with Virgin Atlantic has, since 2013, consolidated Delta’s position on major US-UK routes, including the main New York-JFK trade route to London Heathrow.|
“Throughout the pandemic, Delta continued to invest in our future, including new aircraft orders, by accelerating real estate projects and devoting significant resources to health and safety measures to protect our employees and our customers, ”said Executive Vice President and Chief Financial Officer Dan Janki. “Likewise, investing in our partners now – even as we continue to navigate the pandemic – is the right choice to support Delta’s long-term strategy. ”
Delta’s investments in AFKL, Korean Air and China Eastern remain unchanged.
With a shared philosophy of the highest levels of customer service, Delta is focused on delivering benefits to customers through initiatives that include transparent technology, loyalty reciprocity and frictionless connectivity with its global partners. Delta’s own international network, combined with its partnerships, creates an extensive global network and positions the airline to successfully capitalize on the reopening of international markets, as well as on anticipated future growth.
Statements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, objectives, aspirations, commitments or strategies for the future, should be considered “forward-looking statements”. Under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised results and should not be not be interpreted as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from estimates, expectations, beliefs, intentions, projections, objectives, aspirations, commitments and strategies reflected or suggested by forward-looking statements. . These risks and uncertainties include, without limitation, those described in our documents filed with the Securities and Exchange Commission, including in our annual report on Form 10-K for the year ended December 31, 2020 and our quarterly report. for the quarter period ended September 30, 2021. Care should be taken not to place undue reliance on our forward-looking statements, which represent our opinions only as of the date of this press release, and which we do not undertake to update , except to the extent required by law.