Washington: In a decisive move affecting U.S.–Mexico air travel, the Trump administration has ordered Delta Air Lines and Aeroméxico to dissolve their nearly nine-year-old joint venture by January 1, 2026. The U.S. Department of Transportation (DOT) cited anticompetitive effects and unfair advantages that the alliance has created in the U.S.–Mexico City aviation market.
The joint venture, established to coordinate scheduling, pricing, and capacity decisions between the two carriers, currently accounts for approximately 60% of passenger flights between Mexico City Airport and the United States, one of the busiest international gateways. While the U.S. government is not requiring Delta to sell its 20% stake in Aeroméxico, the DOT emphasized that ending the partnership is necessary to ensure a more competitive and balanced market.
Delta Air Lines expressed disappointment at the decision, warning of potential consequences for U.S. jobs, communities, and travelers. The airline highlighted that the venture supports nearly 4,000 American jobs and contributes over $310 million to the U.S. gross domestic product. It also noted that up to $800 million in annual consumer benefits could be lost, and dozens of routes might be canceled or reduced in capacity. Aeroméxico echoed these concerns, stressing the benefits the alliance had provided in tourism and connectivity, while confirming that existing codeshare agreements and frequent flyer reciprocity will remain unaffected.
The DOT’s action follows ongoing tensions with the Mexican government over airport slot allocations and the relocation of cargo operations in Mexico City, which the U.S. has said distorted competition. Transportation Secretary Sean Duffy has previously warned that U.S. carriers could face further operational challenges if Mexico does not address these concerns. The department maintained that Mexican policies have perpetuated a slot allocation system favoring Aeroméxico, leading to higher fares and reduced capacity for U.S. travelers.
While the joint venture’s dissolution represents a significant shift in North American aviation dynamics, the DOT allowed the airlines flexibility to compete in the market and indicated they could reapply for joint venture approval if future conditions alleviate anticompetitive concerns. This decision underscores the administration’s broader commitment to fair competition in international air travel and signals heightened scrutiny of airline partnerships affecting U.S. markets.