American Airlines announces major new partnership with South American ULCC JetSmart
American Airlines is doubling down on South America — and moving past a pre-pandemic breakup.
The U.S. carrier on Tuesday announced a partnership with South American ultra low-cost carrier JetSmart (branded as JetSMART).
JetSmart, which was founded in 2016, operates primarily out of bases in Chile and Argentina. The airline has a fleet of 20 Airbus A320ceo and A320neo aircraft, with 79 more pending deliveries. It flies short-haul routes throughout the two countries, as well as to destinations in Brazil, Uruguay, Peru and Colombia.
It's owned by Indigo Partners, the private equity firm that owns a range of ULCCs including Frontier Airlines in the U.S., Wizz Air in Europe, Volaris in Mexico and Cebu Pacific in the Philippines, among others.
Under the partnership, the two airlines will codeshare, and American Airlines AAdvantage members will be able to earn and redeem miles on JetSmart. American will purchase a minority ownership stake in the ULCC, and American and Indigo will "jointly commit to provide additional capital to fund potential future opportunities in the region," the airlines said in a statement.
American operates flights to 17 cities in South America, while JetSmart currently services 33 cities. The airlines will offer connections in Cali, Medellin and Bogota, Colombia; Lima, Peru; Buenos Aires, Argentina; and Santiago, Chile.
The partnership comes alongside American's existing codeshare agreement with Brazilian carrier GOL.
Together, the two codeshare agreements help make up for American Airlines' still-stinging 2019 loss of its codeshare with Latam, which is the South American airline stemming from the 2012 merger of Chilean flag carrier Lan and Brazilian airline Tam.
In 2019, Delta Air Lines announced its own partnership with and ownership stake in Latam, effectively stealing the carrier away from American Airlines and its other Oneworld partners.
Still, American said, the impetus for the new partnership is to expand service for its customers based on current opportunities — not to make up for the pre-pandemic Latam breakup.
"What's unique is what JetSmart brings to the American Airlines network," Vasu Raja, American's chief revenue officer, said in a media briefing.
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"For a long time, American Airlines has been the largest long-haul carrier into South America," Raja added. "We've continued to bolster the network and we have plans coming out of here to be able to continue to grow in South America and grow, really, quite aggressively."
It was not clear when the alliance would fully take effect, however. Raja said that the airlines anticipate introducing the codeshare "as quickly as we can," but that the integration of the AAdvantage program could take longer.
"We want to be really thoughtful about how we roll out an entirety of benefits to the customers that preserves the integrity of these business models and fulfills our purpose behind the deal," he said.
Notably, Raja said, the partnership will help American appeal to potential customers who are visiting the U.S.
"As many as 65% of our customer base on these routes originates in South America," Raja said.
While American Airlines would prefer to be viewed as a mainline, premium carrier — on par with Delta and United, even if those competitors are more deliberately trying to appeal to customers as "premium" — Raja said he was not concerned that allying with a ULCC could hurt perceptions of the U.S. carrier.
"Don't be fooled by the name," Raja said of the ULCC moniker, referring to airlines based in non-U.S. markets around the globe. "The quality of product that ULCCs are offering, especially this ULCC, JetSmart is not just competitive with more traditional network competitors in the area — it's very often superior."
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"These are new airplanes with modern seats and a great schedule and travel pattern for either a connecting passenger or especially a nonstop passenger," he added. "So ULCC notwithstanding, this is a product which certainly we'd be very proud to put our customers on, otherwise we wouldn't be engaging in a partnership such as this."
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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
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- 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.
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- No Foreign Transaction Fees.
- Annual Fee is $325.
- 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. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
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.