South America’s JetSmart to undertake American’s AAdvantage loyalty program

American Airways’ AAdvantage loyalty program is about to get slightly bit larger with the addition of South American finances service JetSmart.

The Chilean airline will undertake AAdvantage as its personal loyalty program later this yr, JetSmart CEO Estuardo Ortiz mentioned Tuesday on the Routes Americas convention in Bogota, Colombia. As soon as full, any traveler on JetSmart’s flights will be capable of accrue or redeem AAdvantage miles.

“We predict, for a sure section, it will be fairly precious,” Ortiz mentioned of the plan, which he referred to as “pioneering.”

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The airways are nonetheless figuring out if JetSmart flights can be eligible for AAdvantage tier standing, he added.

JetSmart’s adoption of AAdvantage comes three years after the airways unveiled a wide-ranging partnership. The distinctive deal noticed American, a full-service service, take an fairness stake in ultra-low-cost service JetSmart with plans for future codeshare and loyalty tie-ups.

The deal adopted American’s lack of longtime associate LATAM to Delta Air Traces in 2019. LATAM and Delta subsequently launched a three way partnership overlaying U.S.-South America flights in late 2022. The partnership permits LATAM and Delta to legally coordinate flights, fares and different business actions.

American — which additionally cast a brand new partnership with Brazilian airline Gol after dropping LATAM — accomplished its buy of a 35.4% stake in JetSmart in late 2022. The airways carried out codeshares on the discounter’s flights in Chile and Peru final yr. Codeshares in Argentina and Colombia, the place JetSmart launched home flights earlier in March, are set to start later this yr.

One airline adopting one other’s loyalty program is uncommon, however not extraordinary, in world air journey. Finnair adopted Avios as its loyalty foreign money earlier in March, becoming a member of the likes of Aer Lingus, British Airways, Iberia and Qatar Airways. Avios is owned by Worldwide Airways Group. Additionally, Copa Airways used United Airways’ MileagePlus program for its loyalty wants till launching its personal program, ConnectMiles, in 2015.

For JetSmart, Ortiz sees adopting AAdvantage as a lift to the quickly rising finances airline’s enterprise. Some promoting factors are that AAdvantage is the most important airline loyalty program on this planet and one of many largest in Latin America.

“I feel we’re evolving in a fashion that we actually did not anticipate however it’s undoubtedly welcome,” he mentioned. “It is extra passengers, [and] it is greater yields.”

American executives have beforehand described the partnership as increasing the utility of AAdvantage in South America. That would subsequently increase membership in this system — which is very profitable for American — and get extra individuals on the airline’s flights into and out of the area.

JetSmart operates 35 plane throughout 4 nations: Argentina, Chile, Colombia and Peru. It has orders for an additional 73 Airbus A320neo-family planes and certain extra from majority proprietor Indigo Companions, in line with the most recent orders and deliveries knowledge from Airbus.

Requested about JetSmart’s development plans, Ortiz declined to supply specifics however mentioned the main focus for the subsequent few years is to additional develop its community within the 4 nations the place it already operates.

Ortiz was mum on any plans to serve the U.S.