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

March 20, 2024
3 min read
American Airlines Boeing 737 Miami
South America’s JetSmart to adopt American’s AAdvantage loyalty program
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American Airlines' AAdvantage loyalty program is about to get a little bit bigger with the addition of South American budget carrier JetSmart.

The Chilean airline will adopt AAdvantage as its own loyalty program later this year, JetSmart CEO Estuardo Ortiz said Tuesday at the Routes Americas conference in Bogota, Colombia. Once complete, any traveler on JetSmart’s flights will be able to accrue or redeem AAdvantage miles.

“We think, for a certain segment, it’s going to be pretty valuable,” Ortiz said of the plan, which he called “pioneering.”

The airlines are still determining if JetSmart flights will be eligible for AAdvantage tier status, he added.

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

The deal followed American's loss of longtime partner LATAM to Delta Air Lines in 2019. LATAM and Delta subsequently launched a joint venture covering U.S.-South America flights in late 2022. The partnership allows LATAM and Delta to legally coordinate flights, fares and other commercial activities.

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American — which also forged a new partnership with Brazilian airline Gol after losing LATAM — completed its purchase of a 35.4% stake in JetSmart in late 2022. The airlines implemented codeshares on the discounter’s flights in Chile and Peru last year. Codeshares in Argentina and Colombia, where JetSmart launched domestic flights earlier in March, are set to begin later this year.

One airline adopting another's loyalty program is unusual, but not unheard of, in global air travel. Finnair adopted Avios as its loyalty currency earlier in March, joining the likes of Aer Lingus, British Airways, Iberia and Qatar Airways. Avios is owned by International Airlines Group. Also, Copa Airlines used United Airlines’ MileagePlus program for its loyalty needs until launching its own program, ConnectMiles, in 2015.

For JetSmart, Ortiz sees adopting AAdvantage as a boost to the rapidly growing budget airline's business. Some selling points are that AAdvantage is the largest airline loyalty program in the world and one of the largest in Latin America.

“I think we’re evolving in a manner that we really didn’t expect but it’s definitely welcome,” he said. “It’s more passengers, [and] it’s higher yields.”

American executives have previously described the partnership as expanding the utility of AAdvantage in South America. That could subsequently boost membership in the program — which is highly lucrative for American — and get more people on the airline's flights into and out of the region.

JetSmart operates 35 aircraft across four countries: Argentina, Chile, Colombia and Peru. It has orders for another 73 Airbus A320neo-family planes and likely more from majority owner Indigo Partners, according to the latest orders and deliveries data from Airbus.

Asked about JetSmart’s growth plans, Ortiz declined to provide specifics but said the focus for the next few years is to further develop its network in the four countries where it already operates.

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

Featured image by ZACH GRIFF/THE POINTS GUY
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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  • Annual Fee

    $325
  • Recommended Credit

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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.