The deal between International Airlines Group and Latam will see the two cooperate commercially on flights between the European Union and South America.

Codeshare agreements already in place will be expanded. The link-up is subject to regulatory approval, which could take up to 18 months.

The combined route network would serve more than 100 destinations in South America and 87 in Europe.

Willie Walsh, IAG’s chief executive, said: "We already have a close commercial relationship with Latam Airlines Group as part of oneworld and we look forward to enhancing the relationship further.

"This joint business would benefit customers by providing them with easier journeys to more destinations with better aligned schedules and increased frequencies. This would boost both tourism and business travel between South America and Europe."

Enrique Cueto, LatamAirlines Group’s chief executive, said: "This is excellent news for Latin America. This agreement would significantly improve connectivity bringing Europe closer to our region by providing a wider choice of flights and great benefits to our customers.

"This step is key to ensuring we offer the best network to our customers and increase the options to add new destinations to Latam and its affiliates’ networks."