Delta Airlines, which spent considerable time and money investing in some of its partner airlines before the pandemic and then lost those stakes to bankruptcies at some of those partners, is buying in again, to the tune of about $1.2 billion.
During the early stages of the pandemic, financial woes hit all airlines, and LATAM, AeroMexico and Virgin Atlantic were among those going into bankruptcy or administration, taking Delta's investment with them. Now that they are emerging from bankruptcy, with significant stock positions going to former lenders, Delta is buying its way back in.
On Monday, Delta said that its goals are to control 10% of AeroMexico, 20% of LATAM and to regain a 49% stake in Virgin Atlantic, the most it can own under U.K. law. All three are joint-venture partners with Delta on different routes. LATAM is especially notable, since Delta had only been a LATAM investor for about a year when it went under; the investment was part of the deal in which Delta wooed the airline away from its former partnership with American.
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