WestJet has gained another powerful equity partner, Air France-KLM, in a deal that builds on the relationship with Delta Air Lines and Korean Air, positioning the Canadian carrier to strengthen its international connectivity within a wider transatlantic and transpacific network.
Delta, Air France-KLM, And Korean Air Acquire Stakes In WestJet
Air France-KLM has completed the acquisition of a 2.3% stake in WestJet, following Delta Air Lines’ earlier purchase of a 15% share and Korean Air’s acquisition of 10%. The combined investments give the three carriers a collective 25% minority interest in the Canadian airline.
Under the agreement, Delta remains the lead investor with an estimated $330 million stake, while Korean Air contributed around $220 million and Air France-KLM paid approximately $50 million for its 2.3% share (purchased from Delta). The deal closed on October 22, 2025. WestJet will remain independently managed and headquartered in Calgary, Alberta.
Expanding WestJet’s International Reach
The investment brings WestJet closer to some of the world’s most extensive global route networks. Delta already has a long-standing codeshare and frequent flyer partnership with WestJet, allowing reciprocal mileage accrual and redemptions. This new financial relationship could deepen cooperation and streamline schedules across the U.S.-Canada border, particularly through Calgary and Toronto.
For Air France-KLM, the stake complements its transatlantic operations by adding access to key Western Canadian markets that historically fed Air Canada’s Star Alliance network. Korean Air’s participation could also strengthen connectivity between Calgary and Asia, especially given the airline’s existing joint venture with Delta across the Pacific.
Will WestJet Join SkyTeam?
WestJet is not expected to join SkyTeam, but the new equity structure effectively aligns it with the alliance’s major players. The collaboration allows for expanded cooperation on scheduling, pricing, and feeder traffic without the formality of alliance membership or joint venture partnership, at least not yet.
Delta CEO Ed Bastian explained:
“Investing in a world-class partner like WestJet aligns our interests and ensures that we remain focused on providing a world-class global network and customer experience for travelers in the United States and Canada. Together, Delta and our airline partners are connecting the world and transforming the future of travel.”
As someone who used to work for Star Alliance and loves the concept of airline alliances, I’m sad to see the changing industry landscape, but recognize that the alliance model has fallen out of favor (perhaps another post for another day…).
Delta did try to create an aggressive transborder joint venture with WestJet, but threw in the towel after regulators asked for too many concessions.
CONCLUSION
The minority investment by Delta, Air France-KLM, and Korean Air in WestJet, first initiated in May 2025, marks a significant expansion of commercial cooperation in the transatlantic and transpacific markets. WestJet retains control of its operations but gains stronger global feed and financial backing. For passengers, the move promises better connectivity and possibly a glimpse into a closer working relationship between WestJet and its new strategic partners in the years ahead.
Another excellent informative post Matthew. Only one small quibble….your artwork shows Korean Air’s old logo. Yes I know ….you weren’t exactly the biggest fan of their recent branding overhaul. It’s hard to drop their iconic beloved logo, but it’s something that must be done. Out with the old, in with the new!
Never! Resist the change! Haha…
Interesting developments in Canada’s passenger air industry over the past few years. Westjet’s pullback from the larger Eastern market and Porter’s rapid expansion to fill the gap with new routes out of YYZ and YOW. Add to that challenges to the US transborder market owing to tensions between the two countries. Canada has never been able to support three major airlines, and even struggled with two so interesting to see how this plays out. More competition is great for the consumer though.
Make a post about the massive loss AA posted today.
It’s big news!
Okie dokie, you fine feline. Here’s a synopsis, just for you!
American Airlines lost some of its shiny coins ($114 million—oopsie!). But! The humans who count the coins (investors) are not so mad this time. They think the airline has a super-duper plan to get more kibble (money) by: Making the plane seats extra cozy, like a warm bed by the window (“premium focus”). ✨Making lots of treats from their special “club” for good kitties who use their credit cards (loyalty profits). So, the plane isn’t making enough milk yet, but the new plan is purrfect! Meeeow!
Analysts and investors alike should keep a close eye on the performance of the world’s third-largest airline as measured by fleet size in its upcoming earnings disclosure.
Dr. Güntürk Üstün
WestJet is awful. Unfortunately, I have to fly them twice a year. Their one and only flagship lounge in Calgary is a farce. It’s at best an average Priority Pass lounge. They lack a lounge in Toronto, despite a significant number of flights. WestJet can’t decide whether it’s a low-cost airline or a flag carrier.
My wife and I are flying WestJet in February LAX>CALGARY>WINNIPEG and back in Premium Class (actually going to Churchill for the Northern Lights). Will we be able to use the Delta Lounge at LAX? Thanks
WestJet business class and Gold/Plat members have access.
It’s always wise to invest in a solid airline star on the rise…
Dr. Güntürk Üstün
As it is known, WestJet is not a member of any major airline alliances at the moment. However, it utilizes codeshare and interline agreements with various airlines. On the other hand, SkyTeam could definitely benefit from a Canadian member airline.
Dr. Güntürk Üstün
If anyone still watches late night television, on last night’s The Late Show with Stephen Colbert, in his segment called Meanwhile, there was a brief mention of Westjet and its new seat configuration (regular economy won’t recline). Not sure if anyone else saw it, but it was somewhat funny. It’s on YouTube; around 2:02 in. Anyway, take care out there, folks!