Last year, LATAM surprised the airline and travel industries by announcing its decision to leave the oneworld alliance. On May 1, LATAM Airlines Group officially exited the alliance while outlining plans for its future direction.
LATAM informed oneworld leadership of the move last September and immediately disclosed a strategic partnership with Delta Air Lines. That partnership includes a substantial financial commitment from Delta and signals the potential formation of a powerful trans-American alliance between two of the region’s leading carriers.
Delta’s financial package consists of a $1.9 billion investment for a 20 percent stake in LATAM, plus $350 million dedicated to establishing the partnership and acquiring selected LATAM Airbus A350 aircraft. Delta also holds representation on LATAM’s board of directors.
Although LATAM has left oneworld, it continues to maintain many bilateral relationships with former alliance partners. Agreements with carriers such as British Airways, Finnair, Japan Airlines, and Qatar Airways remain active. Passengers can still book those partner flights through LATAM’s website, earn and redeem frequent-flyer miles across airlines, and receive reciprocal lounge access where applicable. LATAM has, however, terminated its partnership with American Airlines.
“Our priority has been to provide a seamless transition for customers as we work toward offering the leading connectivity in the Americas,” a LATAM spokesperson said. The airline has no current plans to join another global alliance and emphasizes its commitment to delivering strong connectivity between Latin America and the rest of the world while remaining the preferred carrier for travel to, from, and within the region.
The company’s plans were complicated in May when the COVID-19 pandemic forced LATAM to file for Chapter 11 bankruptcy protection, which sparked questions about Delta’s ongoing stake. Delta, however, has reaffirmed its confidence in the partnership.
“We remain firmly committed to our partnership with LATAM and believe that it will successfully emerge a stronger airline and Delta partner for the long term,” said Ed Bastian, CEO of Delta Air Lines.
In July the U.S. Department of Transportation approved Delta and LATAM plans to codeshare on U.S.–Chile routes, and both carriers formally requested antitrust immunity for their proposed joint venture. They say the joint venture would allow metal-neutral service across more than 7,000 city-pairs and support new or expanded nonstop service on at least 18 routes once demand returns to pre-pandemic levels.
Preparing for life outside the alliance, LATAM adjusted several operational details. At New York’s John F. Kennedy International Airport, LATAM moved its operations from Terminal 8 to Terminal 4, effective Feb. 1. Since Delta operates more than 90 destinations from Terminal 4, the relocation makes connections between LATAM and Delta flights smoother. The change aligns with ongoing efforts to expand bilateral lounge access and reciprocal frequent-flyer benefits.
PHOTO: © LATAM
At the same time, LATAM has continued to upgrade its onboard product. In January the airline announced a new premium-economy cabin for international flights and for routes within Latin America on its Airbus A320 family aircraft. Premium economy is available on short- and mid-haul flights, while Premium Business Class remains on long-haul services. Once fully implemented, LATAM will be unique in offering premium-economy across its entire network.
On shorter flights customers can choose standard economy or premium economy, and economy travelers can also purchase LATAM+ seats for extra legroom and reserved overhead bin space. While LATAM+ does not include all the amenities of premium economy, it provides additional comfort and convenience.
Premium-economy passengers receive priority check-in, higher baggage allowances, priority boarding and baggage claim, and VIP lounge access at participating airports and on eligible international flights. In flight, they are guaranteed a seat in the first three rows, benefit from a blocked middle seat for added privacy, have access to a dedicated overhead bin, and enjoy enhanced service including complimentary snacks and drinks.
While premium economy rolled out across flights in March, last year LATAM also introduced an upgraded Premium Business Class throughout its fleet. That product offers direct aisle access, fully flat 180-degree seats, generous storage and an improved wellness-focused experience. Cabin service includes lighter dinners and more nutritious breakfasts on overnight flights, service protocols designed to minimize interruptions, and upgraded bedding and mattresses for better rest.
LATAM reports positive customer feedback as the Premium Business Class expands across its network. Alongside cabin improvements, the airline is expanding its route network to give travelers more direct options.
In 2019 LATAM launched 27 new routes and later announced a new nonstop service between Santiago (SCL) and Frankfurt (FRA), originally scheduled to start June 30 and later delayed to the first quarter of 2021 due to the pandemic. The planned service is intended to strengthen ties between Chile and Germany while significantly reducing travel times and will operate up to 10 weekly flights.
LATAM’s improvements have earned industry recognition. For the second consecutive year the airline won “Best Cabin Service” and “Best Flight Entertainment Service” in Latin America at the Airline Passenger Experience Association’s 2020 Regional Passenger Choice Awards.
“These awards are a direct acknowledgement from passengers to the crews that serve millions of travelers each year, and they confirm our focus on improving the passenger experience,” said Juan Ordoñez, vice president of On Board Service at LATAM Airlines Group. “Today we can say that there is no other airline in the region that offers as many cabin options as LATAM.”
The group was also recognized as the most punctual global airline in the annual On-Time Performance Review by Cirium, which analyzes global flight data across more than 100,000 daily flights. In 2019 LATAM was on time or ahead of schedule 86.7 percent of the time.
“This achievement reflects systematic work to improve our processes and keep punctuality a top priority across the company,” said Hernán Pasman, chief operating officer of LATAM Airlines Group.
LATAM is also expanding its cargo network. In February the airline introduced two new cargo routes connecting the United States with Latin America: Miami (MIA)–Panama (PTY)–Bogotá (BOG) and Miami–Cali (CLO). These routes increase capacity for general cargo, electronics, pharmaceuticals and dangerous goods, and reinforce Panama and Colombia’s roles as key import hubs. LATAM operates one of Miami’s largest and most modern cargo warehouse facilities and transported 903,000 tons of cargo during 2019.
Although LATAM has left its global alliance, it did so with strategic partners and continued industry relationships. Backed by Delta and other major carriers, LATAM remains connected and positioned to navigate a changing aviation landscape.