US orders Delta and Aeromexico to dismantle joint venture

The US Department of Transportation (DOT) has mandated that Delta Air Lines and Aeromexico terminate their joint venture by January 1, 2026, citing ongoing anticompetitive effects in US-Mexico City air travel markets. The order follows months of regulatory scrutiny and comes after nearly nine years of close coordination between the two carriers.

Delta and Aeromexico have operated under a joint venture that allowed for coordination on scheduling, pricing, and capacity for flights between the United States and Mexico. According to the DOT, the partnership has resulted in a concentration of approximately 60% of passenger traffic between Mexico City Airport and the US, raising competition concerns.

The decision does not require Delta to divest its 20% equity stake in Aeromexico, and the airlines may continue their codeshare agreement and reciprocal frequent flyer benefits. Both companies have stated the move does not affect current customer arrangements. Delta and Aeromexico have indicated they are reviewing the order and considering options for future cooperation.

US regulatory concerns grew after the Mexican government implemented slot restrictions and relocated cargo operations at Mexico City Airport, affecting US carriers’ access. The DOT has argued that these measures, combined with the joint venture, created market distortions and could lead to higher fares, reduced capacity, and fewer options for other US airlines.

Delta and Aeromexico primarily operate narrowbody aircraft such as the Boeing 737 and Airbus A320 family on US–Mexico routes, reflecting typical demand patterns and slot constraints at Mexico City International Airport. The termination of the joint venture could prompt both carriers to reassess fleet deployment and route planning for cross-border operations.

The US government has left open the possibility for Delta and Aeromexico to reapply for antitrust immunity if market conditions improve. In the near term, analysts expect increased competition on US–Mexico routes, but also potential disruptions as both airlines adjust their networks and commercial strategies.

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Ricardo Meier

Creator of the website that started in 1996 as a magazine. He also writes on Brazilian websites AUTOO, MOTOO and MetrôCPTM.

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