Shares of Latam soar Delta details deal between airlines

NEW YORK — Shares of Latam Airlines Group are soaring after Delta Air Lines announced it will pay $1.9 billion for a 20% stake in the operator of South American carriers.U.S.-traded shares of Chilean-based Latam rose $2.77, or 31%, to $11.78 in midday trading. Delta will pay $16 a share.Because of obstacles to cross-border mergers, airlines increasingly are striking partnership deals. For Atlanta-based Delta, Latam is bigger than current partner, Brazil’s Gol.Delta CEO Ed Bastian told analysts Friday the deal will boost earnings within the next two years and raise revenue by $1 billion over five years.Latam serves destinations in Chile, Brazil, Argentina, Colombia and other countries. The deal still needs regulatory approval.American Airlines wanted a deal with Latam but was blocked by a court ruling in Chile.The Associated Press read more