The U.S. Department of Transportation has ordered Delta Air Lines and Aeromexico to end their long-standing joint venture, which has allowed the carriers to coordinate schedules and pricing on flights between the United States and Mexico since 2016. The directive, set to take effect by January 1, marks the end of nearly a decade of antitrust immunity that enabled the two airlines to operate closely as partners across the busy cross-border market.
Regulators cited concerns that the partnership created anticompetitive effects in key U.S.–Mexico City routes, giving Delta and Aeromexico an unfair advantage while limiting consumer choice. The department said the arrangement had led to actual and potential harm for both travelers and competing airlines, making the unwinding of the venture necessary to restore balance and competition in the marketplace.
Both Delta and Aeromexico expressed disappointment with the decision, noting that the alliance had provided significant benefits for passengers, communities, and workers in both countries. Delta warned that the termination would harm U.S. jobs and reduce options for travelers, while Aeromexico emphasized that customers would still be able to enjoy codeshare flights and loyalty program reciprocity, allowing frequent flyers to earn and redeem miles across both airlines.
The review of the joint venture was initiated under the Biden administration, following years of disputes between the United States and Mexico over aviation competition. In July, the Transportation Department proposed unwinding the partnership, leading both airlines to file objections. They argued that the venture had contributed $310 million in economic value to the U.S. and that dismantling it would ultimately benefit competitors rather than consumers.
Despite the ruling, Delta will retain its 20% equity stake in Aeromexico, underscoring the ongoing financial ties between the two carriers. The airlines have not yet disclosed whether they plan to appeal the decision or pursue a revised agreement.
The dissolution highlights the increasingly strict regulatory approach toward airline alliances and underscores the U.S. government’s focus on ensuring fair competition in international markets. For travelers, the ruling could mean shifts in schedules, fares, and availability on some of the most heavily traveled U.S.–Mexico routes. For the industry, it signals heightened scrutiny of joint ventures that consolidate market power, particularly in markets where competition is already limited.
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