After nearly two years of threats to do so, the U.S. Department of Transportation has ordered Delta Air Lines and Aeromexico to unwind their joint venture agreement by Jan. 1, 2026.
The Atlanta-based airline’s relationship with Aeromexico dates to 1994 when they first began a code-share marketing partnership. The joint venture — which allows antitrust immunity for joint price and capacity setting — began in 2016, though Delta first purchased a nearly 4.2% stake in the Mexican airline in 2012. That stake expanded in 2021 to 20%, which is unaffected by the order.
The U.S. government across the Biden and Trump administrations has alleged the government of Mexico has “repeatedly distorted competition in the market” in violation of the countries’ air transport agreement.
A key complaint was Mexico’s decision in 2022 to force airlines out of Mexico City’s main Benito Juarez International Airport to the newer Felipe Angeles International Airport more than 30 miles away.
While the Mexican government “confiscated slots on spurious and unsupported grounds,” the U.S. alleges, Delta and Aeromexico were able to maintain their largest share and an advantage in the market while other U.S. airlines have not.
In a statement Delta said it is “disappointed” in the 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.”
All flights will continue as normal, the airline said.
In public comments Delta and Aeromexico warned in July that if their venture were terminated, up to two dozen routes could be canceled, some aircraft could be swapped to smaller models and “tens of thousands of jobs could be threatened.”
The airlines operate 110 daily flights between Mexico and the U.S. across nearly 70 routes.
Credit: Jenni Girtman
Credit: Jenni Girtman
In an op-ed in The Atlanta Journal-Constitution last year, Delta CEO Ed Bastian and Aeromexico CEO Andrés Conesa said the issues were “an unrelated diplomatic dispute regarding Mexico’s international aviation policy — a dispute over which neither of our airlines has any control.”
“Consumers would be left with fewer choices for travel as market competition decreases and could ultimately pay higher ticket prices, with total benefits lost estimated at $800 million,” they argued.
In a statement, Aeromexico said the news “does not affect our customers.” The codeshare and loyalty program agreements remain in place, it said. “Aeromexico regrets this decision, which overlooks the benefits that the alliance has brought to connectivity, tourism, and consumers in Mexico.”
Delta and Aeromexico have nearly 60% of capacity at MEX airport, the department’s order stated.
They have “a history of successfully navigating challenges through means that are not available to other carriers” and their U.S.-government-approved joint venture has made that coordination even easier, the government wrote.
Delta competitor American Airlines, which also has a large presence at MEX, last month filed comments in agreement with the department’s assessment of the situation in Mexico. It applauded the department for seeking “to ensure that international aviation markets are fair and procompetitive.”
In January 2024, the Department proposed to withdraw its grant of the joint venture because of the “confiscation of U.S. carrier slots” and other nontransparent practices by Mexico’s government, the order states.
After 18 months of working with the Mexican government, “the adverse conditions not only continued but worsened,” it said.
The MEX airport authority told U.S. carriers this year it would return their confiscated slots and Mexican President Claudia Sheinbaum published a decree regarding new rules for slot management, the department noted, calling it an “evolving situation.”
These are “positive steps” by Mexico, the U.S. wrote, but regarding the decision on this specific joint venture they “fall well short.”
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