In a move that could reshape transborder air travel, the U.S. Department of Transportation (DOT) has ordered the termination of the joint venture between Delta Air Lines and Aeroméxico, effective January 1, 2026. The decision brings an end to a partnership that has defined U.S.-Mexico routes for nearly a decade.
End of a Transborder Alliance
Since 2017, Delta and Aeroméxico have operated under antitrust immunity, allowing them to coordinate schedules, fares, and capacity across key U.S.-Mexico routes. Together, the airlines hold a commanding position on flights into Mexico City, capturing about 60% of the market. The DOT’s ruling concludes that this dominance has created barriers to competition, particularly for smaller carriers seeking to expand operations at Mexico City International Airport.
The order cites “anticompetitive effects” stemming from Mexico’s slot allocation practices, which the agency argues disproportionately benefit the Delta-Aeroméxico alliance. Regulators contend this imbalance has led to higher fares, reduced service capacity, and fewer consumer options, ultimately undermining the intent of the 2015 U.S.-Mexico Air Transport Agreement.
Transportation Secretary Sean P. Duffy said the decision is consistent with the administration’s broader trade stance. “This action reflects our commitment to fair competition and ensures that American consumers and carriers are not disadvantaged by foreign regulatory practices,” he stated, linking the move to Mexico’s noncompliance with bilateral aviation commitments.
Airlines Push Back
Delta Air Lines quickly expressed frustration with the decision. In a statement, the carrier said: “We are disappointed that the Department of Transportation has chosen to terminate its approval of the strategic and pro-competitive partnership between Delta and Aeroméxico.” The airline added, “It is a decision that will cause significant harm to U.S. jobs, communities, and consumers traveling between the U.S. and Mexico. We are reviewing the Department’s order and considering next steps.”
Aeroméxico echoed the concerns, pointing to the economic benefits the venture has generated. The Mexican carrier emphasized that the partnership has delivered $310 million in annual economic value for the United States while enhancing connectivity and supporting cross-border commerce.
Both airlines argue that the joint venture provides more choices for travelers, particularly through seamless flight schedules and integrated loyalty programs. Despite the ruling, Delta confirmed that “all flights will operate as normal unless passengers are otherwise notified.”
Next Steps for Travelers
The termination order requires the full dismantling of the joint venture by January 1, 2026, ending antitrust immunity for coordinated pricing and scheduling. However, not all cooperation will cease. The airlines are permitted to maintain codesharing arrangements, honor frequent flyer reciprocity, and preserve Delta’s 20% equity stake in Aeroméxico.
Industry analysts note that passengers are unlikely to see immediate changes. Delta and Aeroméxico, which together hold 19.9% of the overall U.S.-Mexico market (second to Volaris at 21.6%), are expected to maintain current schedules in the near term. But over time, greater competition could drive fare reductions, even as travelers lose some of the convenience associated with coordinated operations.
The DOT has also left the door open for a potential reinstatement of the partnership. If Mexico reforms its slot allocation system and restores fair access to carriers, the airlines could reapply for approval.
Competitive Landscape Shifts
The ruling follows a July 2025 proposal by the DOT and support from the Department of Justice in August, underscoring growing scrutiny of cross-border aviation agreements. Competitors such as American Airlines and low-cost carriers like Volaris and VivaAerobus could benefit from a more level playing field, gaining opportunities to expand into the lucrative Mexico City market.
Still, Delta and Aeroméxico warn of broader fallout, including potential job losses and diminished service to U.S. cities that rely on strong Mexico connections. The case may also serve as precedent for future evaluations of international airline alliances, many of which hinge on government approvals and competitive balance assessments.
Advice for Passengers
For now, passengers are advised to continue booking flights as usual. No disruptions are expected until the joint venture officially ends in 2026. The DOT recommends travelers monitor airline websites for updates and review any communications regarding potential changes in flight schedules or benefits tied to loyalty programs.
The DOT’s ruling marks a turning point in U.S.-Mexico aviation policy, balancing the goals of market competition with the risks of industry disruption. As the termination deadline approaches, both carriers will need to navigate a more fragmented but potentially more competitive marketplace.
