American Airlines has invested £159 million in China Southern, China’s largest airline, giving it a 3% stake.
The deal follows rival Delta Air Lines’ $450 million investment in China Eastern Airlines in 2015.
China Southern said the investment would ‘achieve the strategic goal of building a world-class aviation industry group’.
The deal, which is subject to regulatory approval, could lead to code-sharing between AA and China Southern and a tie-up of the carriers’ loyalty programmes.
