Delta Air Lines and Korean Air have agreed to acquire a combined 25% stake in Canadian airline WestJet for $550m from private equity firm Onex Corporation. 

The transaction marks a significant strategic move for the airlines as they deepen their partnership with WestJet, amid ongoing cross-border aviation and trade challenges.

Delta will acquire a 15% stake for $330m, while Korean Air will invest $220m for a 10% share. In a related move, Delta plans to transfer a 2.3% stake in WestJet to joint venture partner Air France-KLM for $50m. Despite the share sales, WestJet will remain majority-owned and controlled by Onex.

The deal builds on longstanding commercial cooperation between the airlines dating back to 2011 and reflects growing interest in cross-investment strategies among global carriers. “Delta, Korean and Air France-KLM are among the world’s most prominent and best-managed airlines. Onex is delighted to welcome them as shareholders in WestJet,” said Tawfiq Popatia, Co-Head at Onex Partners.

The announcement comes as Canadian airlines experience a drop in US-bound travel following renewed trade tensions, including tariffs imposed by the US administration. Air Canada recently lowered its annual earnings forecast, citing weakening trans-border demand and a declining local currency.

The deal is expected to provide WestJet with enhanced access to global networks while offering Delta and Korean Air expanded reach into the Canadian market.

Source: Reuters