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Delta Air Lines

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Air France-KLM

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signed a joint venture agreement to jointly operate trans-Atlantic routes, sharing revenue and costs.

In a statement Wednesday, the airlines said annual revenue from the joint venture is estimated at $12 billion. The venture of Air France-KLM, Europe's largest airline, and Delta, the world's biggest airline, will offer customers more than 200 transatlantic flights and about 50,000 seats a day.

The companies said the agreement covers all flights between North America and Europe, between Amsterdam and India as well as between North America and Tahiti.

The joint venture has no predefined end date, but can be canceled with a three-year notice after the initial term of 10 years.

On Tuesday, Air France-KLM said it posted a net loss of 505 million euros ($687 million) in the January to March quarter and canceled its dividend as the recession caused a slump in business travel and its cargo business.