Korean Air Lines Co. and Delta Air Lines Inc. will acquire a 25% stake in Canada’s second-largest airline WestJet for $550 million, bolstering their presence in North America’s seventh-largest aviation market.
Under the agreement with WestJet’s parent Onex Corp., Korean Air will invest $220 million for a 10% stake while Delta will pay $330 million for 15%, according to a statement Friday. Korean Air’s board approved the transaction, which positions the carrier to expand in North America after relinquishing some international routes to gain approval for its Asiana Airlines merger.
The deal represents another strategic expansion for Korean Air, which recently became the world’s 11th-largest full-service carrier following its Asiana acquisition. The South Korean airline has previously demonstrated success with foreign partnerships, turning its Incheon-Prague route profitable two years after purchasing a 44% stake in Czech Airlines in 2013.
“This investment helps Korean Air expand operations between Korea and North America while establishing new routes in Latin America through WestJet’s network,” said an airline spokesperson.
Canada’s aviation market, valued at approximately $33 billion, offers significant growth opportunities for both carriers. Following integration with Sunwing Vacations and Sunwing Airlines in 2025, WestJet now operates nearly 200 aircraft to more than 100 destinations across the Americas, Europe and Asia.
Delta plans to sell a 2.3% stake to Air France-KLM for $50 million after closing. Onex will maintain majority ownership and control of Calgary-based WestJet, which pioneered low-cost air travel in Canada after its founding in 1996.
