• Delta Air Lines and Korean Air to acquire a combined 25% stake in WestJet for $550 million.
• Delta invests $330 million for 15% while Korean Air invests $220 million for 10%.
• The deal aims to enhance connectivity between North America, Europe, and Asia.
• The investment occurs amid declining U.S.-bound travel from Canada.
• Air Canada lowers profit forecasts due to trade tensions impacting travel.

Delta Air Lines and Korean Air Lines will acquire an aggregate 25% stake in Canada's WestJet Airlines for $550 million from private equity firm Onex Corp. Delta will invest $330 million for a 15% stake, and Korean Air will contribute $220 million for a 10% interest, enhancing their presence in the North American market. This venture aims to build upon previous partnerships and improve connectivity, particularly between the airlines' existing international routes, as stated by Delta's CEO Ed Bastian and Korean Air's Chairman Walter Cho, according to Channel News Asia, Reuters, and Business Insider.

The partnership between these airlines aims to counteract the impact of declining U.S.-bound bookings linked to trade tensions, including President Trump's tariffs on Canadian goods. Recent market reports suggest significant shifts in travel preferences, with Canadian travelers opting for Central America over the U.S. due to political discontent. This trend has been underscored by Longwoods International, which reported that 36% of surveyed Canadian travelers have canceled plans to visit the U.S. due to political factors, according to Reuters and Business Insider.

As part of this transaction, Delta also plans to sell a 2.3% stake in WestJet to its joint venture partner, Air France-KLM, for $50 million. This aspect of the deal reinforces the collaborative strategy among major airlines to strengthen their competitive positions amidst an environment of consolidating markets and heightened regulatory scrutiny concerning potential anti-competitive practices, according to Channel News Asia and Reuters.