American Airlines has announced it has entered into a letter of intent to further solidify its partnership with GOL, Brazil’s largest airline.

Building on the two carriers’ initial codeshare offering in 2020, the expanded partnership includes an exclusive codeshare agreement, a larger and more lucrative joint SMILES and AAdvantage loyalty program partnership.

American also expects to increase commercial cooperation with GOL to accelerate growth and “create a more seamless experience for all customers”, according to the carrier.

“American has long been the leading U.S. carrier to South America and our stronger partnership with GOL solidifies that leadership position,” said American Airlines President, Robert Isom.

“Our long-haul network marries seamlessly with GOL’s strong domestic network in Brazil.

“Together, we will be able to offer customers flying to, through and from Brazil, access to the largest network with the lowest fares and the Americas’ biggest and best joint travel loyalty program.”

GOL will become American’s sole codeshare partner in Brazil and American will become GOL’s sole codeshare partner in the U.S, according to Isom, adding that on their combined networks, customers can travel to more than 30 destinations served by American in the U.S. and more than 20 new destinations in South America served by GOL.

“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.”

American has served Latin America since 1942 and offers service to 17 destinations in South America, including Sao Paulo (GRU) and Rio de Janeiro (GIG) in Brazil, from its U.S. hubs in Dallas-Fort Worth (DFW), Miami (MIA) and New York (JFK).

American has flown more than 14 million customers between the U.S. and Brazil in the last 10 years, while GOL serves 63 destinations in Brazil and is the country’s largest airline.

According to the carriers, the strengthened relationship will also allow for further commercial cooperation in areas such as purchasing, sales tools and systems integrations, as allowed by regulatory and contractual limitations.

According to the carrier, American will also invest US$200 million in 22.2 million newly issued preferred shares of GOL in a capital increase, for a 5.2% participation in the Company’s economic interest.