Delta Air Lines, Inc. (DAL) - Get Report said Thursday it will take a 20% stake in LATAM Airlines Group (LTM) - Get Report for $1.9 billion as part of a strategic partnership to provide travel services throughout North and South America.

Shares of LATAM surged $2.01, or 22%, to $11 in after-hours trading on the news. Shares of Delta were unchanged at $58.78 in the after-hours session.

In addition to the investment, Delta will acquire four Airbus A350 planes from LATAM and assume LATAM's commitment to purchase 10 more A350s for delivery between 2020 and 2025.

TheStreet Recommends

The airline also pledged to invest $350 million to develop the strategic partnership between the two airlines. Delta will also gain representation on LATAM's board.

Delta said it expects the deal to be accretive to EPS over the next two years. It said the agreement will not affect its current financial commitments, including free cash flow and that it will remain within its targeted leverage ratios.

Save 57% during our fall sale: Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor. Click here to sign up and save.