In "Guardians of the Galaxy 2", Yondu died to save Star-Lord. At the last moment, when Rocket left, he told Yondu that he only had one set of space suits. In the end, when Star-Lord came out, he Gave that suit to Star-Lord, so he died.

The lines Star-Lord said when bidding farewell to Yondu:

When I was a kid, I always took a photo of David Hasselhoff and told my friends that he was my business trip out of town. Dad has countless cool new gadgets. Looking back now, although Yondu is no David Hasselhoff, he does have a super cool flying shuttle, a gang of space pirates who swear to follow him, and a group of hot girls from different planets with different skin colors. So maybe in the end, David Hasselhoff really does become my dad, but a Yondu version.