As post-pandemic skies open wider — and the Canada-US trade war deepens — Calgary-based WestJet is poised to soar beyond its Western Canadian roots on the wings of strategic foreign capital.
In what markets are calling a bold signal of its rising international ambitions, WestJet on Friday secured a combined US$550 million from Delta Air Lines and Korean Air, which assumed minority stakes in the Calgary-based carrier.
In all, the companies will take a combined 25% stake, which will also see Air France-KLM join in via a third-party transaction with Delta.
The move is seen by analysts as a strong endorsement of WestJet’s post-pandemic strategy to pivot away from US routes in favour of more profitable trans-Atlantic and trans-Pacific markets.
It also marks its transition for WestJet from a regional low-cost carrier to a serious global contender.
Delta will acquire a 15% stake for US$330 million, while Korean Air takes a 10% stake for US$220 million. Delta also plans to transfer a portion of its holding to Air France-KLM for US$50 million, deepening WestJet’s ties to the Netherlands-based SkyTeam Alliance.
Industry observers say the deals validate WestJet’s aggressive international pivot, as air travel not only recovers from COVID-19 but exceeds pre-pandemic levels.
The deal is also being interpreted as a response to the deepening trade war with the US, which has multiple — yet unclear — repercussions for cross-border trade and travel.
That’s because WestJet has been steadily increasing service to Europe and Asia while cutting US routes, a strategy that aligns with shifting travel demand and geopolitical trends.
“In many ways, this marks a new chapter for WestJet,” said aviation analyst Claire Howard. “The US market is oversaturated and increasingly politicized, while international travel is booming.”
Statistics Canada data shows a sustained decline in Canadian travel to US destinations since 2022, even before Donald Trump was elected president in 2023, with a noticeable drop in business and leisure travel linked to increased cross-border friction and increasingly protectionist rhetoric under the new administration.
The shift is prompting both Canadian and overseas carriers to reallocate resources toward less politically volatile international markets. WestJet’s decision to exit some US destinations is consistent with broader industry trends toward operational efficiency and profit over volume.
“The trade tensions and uncertain regulatory climate in the US are pushing airlines like WestJet to diversify routes and partnerships,” Howard added. “It’s about future-proofing.”
In a joint statement, Delta and Korean Air emphasized the strategic value of expanding WestJet’s global footprint.
“Investing in a world-class partner like WestJet aligns our interests and ensures we remain focused on delivering a global network and premium customer experience,” said Delta CEO Ed Bastian.
Korean Air Chairman Walter Cho echoed the sentiment, calling the investment “a boost to trans-Pacific connectivity and long-term customer value.”
WestJet CEO Alexis von Hoensbroech welcomed the new investments as a sign of confidence in the company’s business model.
“These partnerships are a powerful endorsement of our people and our performance coming out of an extraordinary time for aviation,” he said. “They enable us to better serve Canadians—and the world—through strategic global growth.”
Despite the foreign cash infusion, control of WestJet remains with Onex Partners, the private equity firm that acquired the airline in 2019. Onex says the deal does not change WestJet’s Canadian identity, but rather strengthens it through “smart” international alignment.
WestJet now operates nearly 200 aircraft and serves more than 100 destinations globally, with recent expansions into Seoul, Rome and Tokyo.