Delta Air Lines says it is selling regional feeder carrier Atlanta Southeast Airways to Skywest.
The price was estimated at $425 million.
Delta executives say ASA, which has a number of flights in and out of the Panama City airport each day, will continue to serve Delta customers under a new 15-year agreement.
Skywest operates as an independently owned partner carrier for Delta and United Air Lines. It is based in Utah.
If federal regulators approve the sale of ASA it could take place sometime next month.
Delta will use the money from the sale for general operating expenses and to pay off part of the company’s $100 million debt.
Delta has lost nearly $10 billion since early 2001 and is in danger of filing for bankruptcy protection.