Delta Air Lines said it is buying a 3.5 percent equity stake in Mexican airline Aeromexico for about USD$65 million.
The agreement builds on an existing commercial alliance between the airlines and will more closely link Delta's network to Mexico, the company said in a statement.
Delta is paying 31 pesos per share for the Aeromexico stake, said Andres Conesa, chief executive of the Mexican airline.
As part of the deal, Delta will take a seat on the Aeromexico board, the companies said
Aeromexico, which went public in April, has been the only large Mexican airline since rival Mexicana ceased operations a year ago under heavy debt and labour conflicts.
Separately, Delta chief executive Richard Anderson said his company still plans to order 200 planes by year-end. Delta will make a decision on that order in the third or fourth quarter, he said.
The US airline has no plans to replace its existing wide-body fleet, Anderson said.
Boeing recently decided to equip its 737 jets with new engines to save fuel, and Anderson said the new version "will be a very competitive product."
Before the re-engine plan, Boeing's sales were hit in the first half by uncertainty over its strategy for the 737 medium-haul jet, which competes with a similar Airbus plane.