The deal means that American Airlines will be able to put its code on Kingfisher Airlines domestic flights within India as well as on flights to Delhi and Mumbai from London Heathrow.
In return, Kingfisher Airlines will be able to code-share on American Airline flights to Delhi from Chicago and some services between the US and London.
"We are very pleased to announce our code-share partnership with Kingfisher, an airline that offers our customers the choice of flying to more cities throughout India and a more convenient travel experience," said Virasb Vahidi, American Airlines' chief commercial officer.
Kingfisher Airlines launched its international services in 2008 and now flies to Dubai, London, Hong Kong, Singapore, Bangkok, Colombo, Dhaka and Kathmandu. The carrier also has a number of domestic services from cities such as Delhi, Mumbai and Chennai.