American Airways and its finances airline companion JetSmart are understanding the small print to convey AAdvantage miles redemptions to the South American service.
The airways have confronted “some challenges” rolling out AAdvantage as JetSmart’s loyalty program, mentioned Victor Mejia, chief business officer of JetSmart, on the Routes Americas convention in Nassau, Bahamas, on Tuesday.
American and JetSmart first unveiled plans for the latter to undertake AAdvantage as its personal loyalty program in July 2021 as a part of an funding by the previous. A key side in that pact was realized in September 2024 when AAdvantage members had been capable of earn miles and Loyalty Factors on JetSmart flights throughout South America. Miles redemptions had been anticipated by the tip of the yr however have but to start.
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AAdvantage redemptions are coming “very quickly” to JetSmart flights, Mejia mentioned when requested concerning the delay. Whereas he wouldn’t specify a date, he did say it might be this yr.
“There’s an necessary buyer base in Latin America that, possibly, does not have sufficient AAdvantage miles for a ticket to the U.S. however have sufficient for a one-hour flight on us,” he mentioned.
That buyer base is necessary to each American and JetSmart.
American is the biggest U.S. airline in Latin America, the place it has a large variety of AAdvantage members, executives have mentioned. This system, in keeping with a 2021 investor presentation, is among the many largest airline loyalty packages on this planet with greater than 115 million members globally.
The U.S. service has taken a two-pronged method to serving these AAdvantage members in Latin America. It has an fairness partnership with Gol Airways within the Brazilian market, with JetSmart protecting a lot of the remainder of South America. American adopted the technique after its longtime companion LATAM shifted its allegiance to Delta Air Strains in 2019.
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JetSmart has native operations in Argentina, Chile, Colombia and Peru, and massive development plans for the years forward. The Chilean service goals to greater than double its fleet from 44 Airbus A320-family planes at present to 100-plus plane by the tip of the last decade.
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Indigo Companions, the non-public fairness agency behind finances carriers Frontier Airways and Wizz Air, owns nearly all of JetSmart and American holds a roughly 35% stake.
“Funding from our aspect leads right into a home growth [at JetSmart], which permits us to increase our long-haul,” mentioned Anmol Bhargava, vice chairman of world alliances and partnerships at American, in a 2023 interview. “It simply turns into a round wheel for our companions.”
JetSmart has expansive plans for its new plane as they arrive, Mejia mentioned. That features filling out its home and intra-South America networks, particularly in Argentina and Colombia, and increasing north from Colombia to locations within the U.S., Caribbean and Mexico.
Within the meantime, JetSmart is already benefiting from its adoption of AAdvantage final yr. Practically 10% of vacationers embody an AAdvantage quantity on their reservation at present, Mejia mentioned. And the share is anticipated to develop as soon as miles redemptions come on-line.
The airline can also be within the means of increasing its codeshare partnership with American to incorporate Colombia, he added. JetSmart anticipates having approvals in hand and the pact applied by the tip of the yr.
American and JetSmart at present codeshare in Chile and Peru, and on choose flights in Argentina.
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