As 2026 approaches, Alaska Airlines is quietly closing the door on one of the most consequential partnerships in its modern history. The airline has formally terminated its codeshare and loyalty relationship with LATAM Airlines Group, ending a near-decade collaboration that once anchored Alaska’s presence in South America.
The move was finalised in a filing with the U.S. Department of Transportation on December 29, 2025, but the practical effects of the split have been visible for months. Frequent-flyer benefits were removed in stages, network cooperation narrowed, and the partnership gradually lost its commercial relevance. By the time the filing became public, the relationship had already been reduced to little more than a transitional arrangement.
This was not a sudden break. It was the inevitable conclusion of two airlines moving in different strategic directions.
Why the Partnership Once Mattered
When Alaska and LATAM first joined forces in 2016, the agreement addressed a clear imbalance. Alaska was a strong regional carrier with deep loyalty on the U.S. West Coast but limited long-haul reach. LATAM, newly consolidated from the LAN–TAM merger, controlled the most extensive network in South America and was seeking reliable feed from North America.
The partnership gave Alaska instant relevance south of the equator. Through LATAM, Alaska customers could access dozens of destinations across Chile, Peru, Brazil, Colombia, and Argentina, while Mileage Plan members benefited from competitive award pricing that often undercut U.S. legacy carriers. LATAM, in turn, gained steady traffic from Seattle, Portland, Los Angeles, and San Francisco—markets where Alaska’s brand loyalty was unusually strong.
For several years, the arrangement worked precisely because it filled structural gaps on both sides.
The Strategic Ground Shifts
The foundation began to shift in 2020, when Delta Air Lines took an equity stake in LATAM. That investment fundamentally altered LATAM’s incentives. Delta was no longer just a commercial partner; it became a strategic shareholder with influence over network planning, alliance positioning, and long-term priorities.
Shortly afterward, LATAM exited the oneworld alliance, a move widely interpreted as clearing the runway for deeper cooperation with Delta.
For Alaska, the second turning point came in 2021 with its own entry into the oneworld alliance. Alliance membership delivered global reach through American Airlines and British Airways, but it also introduced overlap and competitive tension with LATAM’s Delta-aligned strategy.
From that point on, the partnership existed in a narrowing corridor. Delta has historically limited its partners’ ties with competing U.S. carriers, particularly where networks intersect. Against that backdrop, many analysts viewed the Alaska–LATAM relationship as unsustainable in the long term.
A Deliberate, Phased Withdrawal
Rather than ending the partnership abruptly, both airlines opted for a controlled unwind. The most visible change arrived on October 1, 2025, when reciprocal mileage redemptions were discontinued. Alaska points could no longer be used on LATAM flights, and LATAM miles ceased to be valid on Alaska’s network.
Mileage earning followed a clearly defined schedule. Tickets booked before August 31, 2025, remained eligible for accrual regardless of travel date. Bookings made in September earned miles only if travel was completed by December 31. Any tickets issued after October 1 no longer qualified at all.
This staged approach reduced customer disruption, but it also sent a clear signal: the partnership was ending, not being renegotiated.
Loyalty Reinvention and the End of Mileage Plan
The timing of the LATAM exit closely aligns with Alaska’s most significant loyalty overhaul in decades. In late 2025, the carrier retired its long-running Mileage Plan brand in favour of Atmos Rewards, a unified programme launched alongside Hawaiian Airlines following Alaska’s acquisition of the carrier.
Atmos Rewards is designed for a different airline than the one that partnered with LATAM in 2016. It prioritises alliance connectivity, selective global partnerships, and Alaska’s own long-haul flying, rather than dependence on third-party regional networks.
Within that framework, LATAM no longer fit strategically. The partnership had been built to compensate for Alaska’s lack of widebody aircraft and international scale—constraints that no longer apply.
Consolidation Changes the Balance of Power
The acquisition of Hawaiian Airlines materially reshaped Alaska’s competitive position. It brought widebody aircraft into the fleet, expanded international operating experience, and extended Alaska’s reach deep into the Pacific. It also narrowed the gap between Alaska and the larger U.S. network carriers it has long competed against.
With that scale comes a reassessment of partnerships. Relationships that once accelerated growth can become redundant—or misaligned—once an airline begins pursuing its own long-haul ambitions and alliance-driven connectivity.
What Travelers Lose—and What Remains
With the codeshare terminated, Alaska and LATAM will retain only a basic interline agreement. Passengers can still book itineraries involving both airlines on a single ticket for baggage transfer, but the seamless experience is gone. There is no reciprocal lounge access, no elite recognition, and no cross-network mileage accrual.
For South America-bound travellers, Alaska is now directing Atmos Rewards members toward oneworld partners such as American Airlines and British Airways. While functional, this routing lacks the geographic efficiency that once made LATAM such a strong fit for West Coast passengers.
A Shift Away From South America
Notably, Alaska has made no attempt to replace LATAM with another South American partner. Instead, the airline is reorienting its international strategy toward transatlantic and transpacific corridors, with Seattle positioned as the primary global gateway.
New and expanded relationships with Starlux Airlines and Icelandair now underpin Alaska’s international reach, offering access to Asia and Europe that aligns more closely with its network strengths.
Alaska’s Own Aircraft Take the Lead
The clearest expression of Alaska’s post-LATAM strategy is its move into long-haul flying under its own brand. In December, the airline opened ticket sales for a nonstop Seattle–London Heathrow service operated by Boeing 787-9 aircraft.
The route launches on May 21, 2026, with daily, year-round service—an unusually confident commitment for an airline still relatively new to long-haul operations. Ticket sales have also opened for Seattle–Rome, reinforcing Alaska’s intent to compete directly in transatlantic markets rather than relying solely on partners.
Domestic Expansion Continues in Parallel
International ambition is being matched by domestic investment. Alaska has announced seven new routes launching in 2026, with Anchorage and Portland as focal points.
From Anchorage, new services to Boise, Spokane, and Boston will extend Alaska’s reach across the continental United States, including one of the longest domestic routes in its network. Portland will gain four additional destinations—Bellingham, Everett, Pasco, and Jackson Hole—strengthening regional connectivity and reinforcing Alaska’s West Coast dominance.
What the LATAM Exit Really Signals
The end of the Alaska–LATAM partnership is not simply the loss of a codeshare. It reflects how alliances, equity investments, and consolidation reshape airline strategy over time. What was once a vital growth bridge has become misaligned with Alaska’s current trajectory.
As 2026 begins, Alaska Airlines is no longer a carrier seeking relevance through opportunistic partnerships. It is an alliance member, a consolidator, and an emerging long-haul operator with ambitions anchored firmly in Seattle and the broader Pacific Northwest.
The LATAM chapter is now closed. What follows is a more self-directed—and strategically demanding—phase in Alaska Airlines’ evolution.
For more on Alaska Airlines, see: Why Alaska Airlines Is Rebuilding Inflight Credit Card Sales From the Inside Out
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