Delta Airlines is set to buy a 20% stake in LATAM Airlines Group with the aim of expanding its business in Latin America.
The stake, which is worth $1.9 billion, will result in Delta selling its stake in Brazil’s largest airline, Gol.
Delta is using newly issued debt and available cash for the deal. It will also provide LATAM with an additional $350 million to help it transition out of oneworld and plug into Delta’s network.
Delta will also acquire four A350 aircraft from LATAM and assume LATAM’s commitment to purchase another 10 A350s to be delivered between 2020 and 2025 for an undisclosed sum.
In a statement to Reuters, Delta expressed hope that the deal would add $1 billion in revenue growth over five years.
The airline also has stakes in Grupo Aeromexico, Air France KLM, Virgin Atlantic and Korean Air Lines.
Delta Airlines, headquartered in Atlanta, Georgia, is one of the major airlines of the United States. It operates over 5,400 flights daily and serves 325 destinations in 52 countries on 6 continents.