American Airlines bolsters South America presence with GOL partnership, reciprocal benefits
American Airlines has long been the largest U.S. carrier in South America and is committing to maintaining that position despite increasing competition.
The Fort Worth, Texas-based carrier on Wednesday announced plans to invest $200 million in the Brazilian carrier GOL, for a 5.2% stake in the company. Along with that, the two carriers will expand their codeshare partnership into an exclusive agreement between the U.S. and Brazil and roll out enhanced loyalty benefits.
This news comes less than two years after American lost its long-standing partnership with the Latin American giant LATAM Airlines to Delta Air Lines. Meanwhile, Delta had to ditch its stake in GOL in favor of the new tie-up.
American Airlines - GOL codeshare agreement
American Airlines and GOL have already been codeshare partners since early 2020. As a part of the tie-up, the airlines are able to offer passengers greater connectivity to far-flung destinations and more efficient pricing. However, the airlines are now taking their relationship a step further.
“This codeshare agreement between two of the leading airlines in the Americas combines our highly complementary route networks to offer customers a seamless travel experience with the largest number of flights and destinations in North and South America,” said GOL CEO Paulo Kakinoff. “We believe that this will bolster GOL’s presence in international markets, accelerate our long-term growth, and maximize value for our shareholders. It adds to our confidence in GOL’s growth as the economy reopens and travel demand increases.”
The airlines also expect to increase commercial cooperation to accelerate growth and create a more seamless travel experience. American operates flights to 17 cities in South America, including flights to Sao Paulo (GRU) and Rio de Janeiro (GIG) from Dallas-Fort Worth (DFW), Miami (MIA) and New York-JFK. Meanwhile, GOL currently serves 63 destinations in Brazil and is the country’s largest airline.
This enhanced partnership comes alongside American’s codeshare agreement with the Chile and Argentina-based ultra low-cost carrier JetSmart. These partnerships will appeal especially to potential customers who are visiting the U.S. as American recently revealed that two-thirds of passengers on its flights to and from South America are based there.
Related: 6 ways my loyalty to American Airlines is now paying off
Enhanced loyalty program benefits
What's perhaps more exciting for customers is that American and GOL are expanding their joint loyalty offerings.
A couple of months after the partnership first launched, the airlines rolled out reciprocal mileage earning and redemption benefits. Exactly as it sounds, this means that you could seamlessly earn and redeem miles across both airlines, though there have been some limitations. For example, you could only earn credit toward AA elite status on GOL flights ticketed by American Airlines and you currently need to call to redeem American miles for GOL awards.
However, these drawbacks could become a thing of the past soon. The airlines revealed that they "expect to offer an enhanced joint loyalty offering to give customers more ways to earn and redeem miles.
Further, the airlines will roll out reciprocal loyalty perks for elite members.
Come 2022, GOL’s SMILES and American’s AAdvantage elite members will gain access to perks like priority check-in, priority security, priority boarding, a larger checked baggage allowance, lounge access and preferred seats across both airlines.
As of April 27, 2021, AA elites can now also earn their usual elite bonus miles on GOL Airlines marketed flights.
Related: Maximizing redemptions with American Airlines AAdvantage
Bottom line
South America remains a key market for American Airlines. With today's news, American has affirmed that it's committed to offering more seamless bookings and loyalty benefits for passengers traveling between the U.S. and Brazil. This is increasingly important as Delta and LATAM double down on their Miami "gateway hub" and increase connections between the regions.
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.