Delta and Korean Air invest in WestJet
Delta Air Lines and Korean Air have announced a joint investment of $550 million to acquire a combined 25% stake in WestJet, the second-largest airline in Canada.
Delta will take a 15% share, while Korean Air will hold 10%, with the deal intended to deepen collaboration among the three carriers and expand international connectivity. The announcement was made on Friday.
The transaction involves purchasing shares currently held by Canadian investment group Onex Partners, which will remain WestJet’s majority shareholder. Additionally, Delta plans to transfer 2.3% of its stake to joint venture partner Air France-KLM for $50 million, pending regulatory approval.
Delta and WestJet have maintained a codeshare partnership since 2011, while Korean Air has also cooperated with WestJet for years. With this new deal, the airlines aim to offer a more integrated network across North America, Europe, and Asia, enhancing the travel experience for frequent flyers.
“Investing in a world-class partner like WestJet aligns our interests and ensures we remain focused on delivering a top-tier global network,” said Ed Bastian, CEO of Delta. Walter Cho, CEO of Korean Air, added that the strategic partnership will enhance the airline’s global reach and offer more value and choice for customers.
WestJet recalibrates after U.S. demand slowdown
The investment comes at a pivotal time for WestJet, which has been adjusting its operations in response to declining demand on transborder routes to the U.S. In March 2025, the airline suspended seasonal flights between Alberta and destinations like New York LaGuardia and Orlando, citing shifting passenger preferences and weakened U.S.-bound bookings.
According to OAG data, bookings between Canada and the U.S. dropped over 70% year-over-year, impacted by economic uncertainty, unfavorable exchange rates, and trade tensions. WestJet CEO Alexis von Hoensbroech reported a 25% drop in U.S. ticket sales following the announcement of new tariffs by the U.S. government.
To adapt, WestJet has redirected capacity to more promising markets, including expanded transatlantic service to cities like Dublin and Edinburgh. The airline also announced plans to build a major MRO facility in Calgary in partnership with Lufthansa Technik, expected to open in 2027.
These moves are part of WestJet’s long-term strategy to build resilience and reposition itself amid a changing aviation landscape. The new alliance with Delta and Korean Air reinforces that vision, integrating WestJet into a more globally connected network and opening the door to new growth opportunities.
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