Delta, Korean Air Invest $550 Million In WestJet To Boost Global Airline Power

Delta Air Lines Inc. DAL and Korean Air announced on Friday that they will be purchasing minority stakes worth a combined $550 million in Canadian carrier WestJet.

This strategic move has Delta acquiring a 15% interest for $330 million, while Korean Air secures a 10% share for $220 million, expanding their long-standing partnerships with WestJet.

The equity purchases come as part of an agreement with Onex Partners, a division of Canadian investment firm Onex Corp ONEXF, alongside its associated funds and co-investors. These new investments are intended to enhance airline cooperation, improve passenger services and strengthen routes across Canada, North America, Europe and Asia.

Related: BofA Slashes Delta Air Lines Estimates For 2025 And Beyond Amid Capacity, Revenue Challenges

Delta CEO Ed Bastian emphasized that investing in WestJet aligns Delta's priorities by offering a stronger global network and better passenger experiences across U.S. and Canadian routes. Meanwhile, Korean Air's CEO Walter Cho highlighted the importance of this investment in boosting transpacific connectivity and delivering greater convenience for travelers.

Following the completion of the transaction, Delta intends to transfer a 2.3% stake in WestJet to its joint venture partner Air France-KLM ADR AFLYY for $50 million, subject to approvals. Despite these equity changes, Onex will retain control of WestJet, which is headquartered in Calgary, Alberta.

The three airlines already share a history of codeshare agreements, providing passengers with flight options across continents.

DAL, ONEXF Price Actions: Delta shares were trading higher 0.47% at $48.77, and Onex was up 0.27% at $73.19 at publication on Friday.

Also Read:
• Airline Stocks Climb As Oil Prices Drop On OPEC+ Output Hike

Photo: A. Michael Brown via Shutterstock