Delta Air Lines will invest a total of $1.2 billion in Aeromexico, Latam Airlines Group and Virgin Atlantic as each carrier emerges from restructuring or recapitalization, Delta announced Monday. The carrier said its aim is to enhance its global network, provide seamless connectivity and "an elevated experience," as well as fuel business growth.
Upon completion of each airline's respective processes, Delta is targeting a 20 percent stake in Aeromexico, down from the 49 percent equity stake it had prior to the carrier's proposed restructuring plan, and a 10 percent equity stake in Latam, down from its previous 20 percent share. The Atlanta-based carrier also will maintain its 49 percent equity stake in Virgin Atlantic Airways. There is no change in Delta's investments in Air France-KLM, Korean Air or China Eastern Airlines, according to the company.
"These strategic investments in our partners will transform our ability to improve travel for our customers, enabling us to deliver a seamless travel experience alongside offering customers an unrivalled network between North American and premier markets worldwide," Delta CEO Ed Bastian said in a statement. "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, our employees and our investors as global travel rebounds in 2022 and beyond."
Delta and Aeromexico launched a joint cooperation agreement in 2017. Since that time, the carriers have built a transborder network of more than 40 business and leisure routes from their main hubs. Following Chilean Court approval in October of their joint venture agreement, announced in 2019, Delta and Latam expanded their existing codeshares to improve connectivity between North and South America. Delta has been in a joint venture with Virgin Atlantic since 2013.