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Muvhuro, June 9, 2025

Canada, the Netherlands, and France have emerged as key players in what could become one of the most significant aviation market moves of the decade—WestJet’s potential return to the public market. With billion-dollar equity deals involving Delta Air Lines, Korean Air, and France’s Air France-KLM reshaping ownership, and the recent full integration of Sunwing Airlines strengthening WestJet’s operational scale, speculation over a 2025 IPO is gaining momentum. These multinational partnerships are seen not only as a vote of confidence in the Canadian carrier but also as a strategic setup for a high-stakes public offering that could redefine Canada’s aviation landscape. While Onex has yet to confirm official IPO plans, the signals from global investors suggest that WestJet’s market comeback may be just around the corner.

WestJet IPO Buzz Builds as Strategic Investments Fuel Speculation in Canadian Aviation Market

Canada’s second-largest carrier, WestJet, has reignited IPO speculation in 2025, with growing industry buzz hinting at a possible return to the public trading arena. The airline, privately held since 2019 by Toronto-based Onex Corporation, has taken a series of bold steps this year—raising questions about whether it’s laying the groundwork for an initial public offering.

While no official announcement has been made, recent developments—including major stake sales to global airline players, the completed merger with Sunwing Airlines, and subtle signals from company leadership—suggest that an IPO could be closer than ever.

Global Stake Sales Spark IPO Talk

In May 2025, WestJet made headlines when Onex sold a combined 25 percent equity stake in the airline. Delta Air Lines, headquartered in the United States, acquired a fifteen percent ownership stake in WestJet for $330 million, while Korean Air secured a ten percent share through a separate investment valued at $220 million. Adding to this momentum, Delta announced plans to offload a 2.3 percent stake to European aviation group Air France-KLM.

Together, these transactions assign WestJet a market value in the ballpark of \$3.1 billion—an impressive figure in a sector still grappling with post-pandemic volatility and economic uncertainty.

While none of these transactions directly indicate an IPO is imminent, they represent a critical shift in WestJet’s ownership landscape. In a recent investor call, Onex Partners’ co-head Tawfiq Popatia hinted that WestJet may return to public markets “someday,” sparking more buzz across the aviation and investment sectors. Such a move aligns closely with Onex’s typical investment philosophy: create value, scale with strategic partners, and eventually seek profitable exits.

Sunwing Merger Adds Fuel to Speculation

Another major development driving IPO speculation is WestJet’s full integration of Sunwing Airlines, a process completed earlier this year. The merger, long in the works, has expanded WestJet’s route network, added aircraft to its fleet, and increased its presence in Canada’s leisure travel market.

Analysts believe that the consolidation could make WestJet more appealing to investors by improving operational efficiency, cutting duplicate costs, and driving revenue through expanded offerings. In IPO terms, it positions the company as a more robust, diversified player in North America’s competitive aviation scene.

History and Market Dynamics

WestJet is no stranger to public markets. It first went public in 1999, raising C\$25 million to fund growth initiatives. For two decades, it traded as one of Canada’s top airline stocks before Onex took it private in 2019 through a \$31-per-share acquisition.

Since then, market dynamics have shifted. Air Canada, its chief rival, is currently trading around \$19 per share—a figure that reflects investor caution amid economic headwinds, rising fuel costs, and industry-wide turbulence.

Some financial experts argue that 2025 may not be the ideal year for an IPO due to high interest rates, inflationary pressures, and limited investor enthusiasm for airline stocks. Still, WestJet’s growing network of global airline partners—including Delta, Korean Air, and Air France-KLM—could act as a vote of confidence that helps counterbalance market skepticism.

Why Onex May Delay the Move

Despite all signs pointing toward a potential IPO, Onex is moving carefully. Several factors could explain the hesitation.

First, airline stocks are notoriously volatile. WestJet must manage challenges such as fluctuating oil prices, labor negotiations, and shifts in passenger demand. Secondly, the integration with Sunwing needs to demonstrate consistent returns before public investors can be convinced of its long-term benefits.

Third, there’s the matter of market timing. Onex will likely wait until macroeconomic conditions improve and investor sentiment warms up. The company has a track record of patient capital deployment, and it may choose to optimize its exit strategy by waiting for more favorable market conditions.

What a WestJet IPO Could Mean

Should WestJet decide to go public, the move could reshape Canada’s aviation sector. With public capital, the airline would gain resources to expand its fleet, introduce new routes, and invest in digital infrastructure and passenger experience enhancements.

It could also increase transparency and accountability within WestJet’s operations—benefits that investors and regulators often value in publicly traded companies. For consumers, a more competitive market could bring improved service standards and potentially lower airfares.

However, an ill-timed IPO poses risks. If market conditions sour or WestJet underperforms, it could lead to a disappointing public debut, harming both Onex’s exit strategy and new shareholders’ confidence.

Final Verdict: IPO Possible, But Not Guaranteed

As of June 2025, no official IPO has been filed. Yet the combination of international partnerships, a stronger operational footprint, and leadership hints indicates that WestJet may be laying the groundwork for a return to public trading.

Canada, the Netherlands, and France are fueling speculation of a WestJet IPO in 2025, as billion-dollar airline stake sales and strategic partnerships hint at a bold return to the public market.

The timing will likely hinge on how well WestJet performs post-Sunwing integration and whether broader economic trends support investor appetite for airline stocks. For now, the industry watches closely as WestJet repositions itself—potentially for one of the most anticipated public offerings in Canadian aviation history.