Qantas and American Airlines have tightened their relationship, with the Australian carrier pushing deeper into the U.S., while its U.S. counterpart taps New Zealand.
"This allows us to have routes that we wouldn't have been able to operate on our own," Qantas CEO Alan Joyce told CNBC Friday. "We're a lot stronger together than we would be separate."
The two carriers, both part of the One World code-sharing alliance, have boosted their revenue-sharing tie-up, announcing that Read MoreAmerican Airlines would add services to New Zealand's Auckland Airport from Los Angeles. The deal will allow travelers to connect with Qantas' domestic offerings in New Zealand via the Jetstar brand as well as travel onward to Australia.
At the same time, American Airlines will begin offering a Los Angeles-to-Sydney service, resulting in a net 9 percent increase in capacity on the popular route. That will allow Qantas to free up planes to launch a Sydney-to-San Francisco flights, a service it hasn't offered since 2011.
The deal differs from a traditional code-share as the two carriers are sharing revenue and coordinating schedules.