Delta and Aeromexico must end joint venture by January, Trump administration rules

Delta Air Lines must end its deep ties to Aeromexico by January, the Trump administration ruled Monday.

After a 20-month fight between the two airlines and the U.S. and Mexican governments, the U.S. Department of Transportation said it will not allow the joint venture between the two carriers to move forward.

Their joint venture must end by Jan. 1, according to a ruling handed down by the DOT Monday, as first reported by Seth Miller at PaxEx.Aero.

The move could leave dozens of routes between the U.S. and Mexico City in jeopardy.

Delta and Aeromexico have been at odds with the U.S. government since January 2024, when the Biden administration first said it would not renew the antitrust immunity that allows the two airlines’ to coordinate on fares and flying schedules — ties that go well beyond the carriers being SkyTeam alliance partners.

At issue: the DOT said the government of Mexico has engaged anticompetitive tactics at Mexico City’s Benito Juarez International Airport (MEX), blocking access to other airlines in favor of Mexico’s flag carrier.

The airlines had protested the decision, and warned unwinding the joint venture would lead to the shuttering of dozens of routes.

But after a lengthy review, the DOT on Monday confirmed it would order the end to the Delta-Aeromexico joint venture effective on Jan. 1, 2026, arguing the competitive landscape in Mexico City has gotten worse — not better — in recent months.

Delta and Aeromexico’s joint venture dates back nearly a decade, and has seen the two carriers expand their cross-border flying between the U.S. and Mexico significantly.

This year, Aeromexico’s total seats to and from the U.S. were set to be up nearly 33% compared with 2019, according to data from aviation analytics firm Cirium. That included a sizable expansion earlier this year.

Delta was on track to grow its seats to Mexico by 17% versus six years ago, per Cirium.

In a statement to TPG late Monday, Delta said it was “disappointed” by the DOT’s ruling, which it said would cause “significant harm to U.S. jobs, communities and consumers traveling between the U.S. and Mexico.”

It was not clear whether the carriers planned to file an appeal.

Short of that, you’d likely see some level of cooperation between the two carriers continue under their alliance partnership, but it’s possible — according to past filings by the airlines — that the unwinding of their deeper tie-up could lead to the end of some routes.

Delta and Aeromexico have repeatedly argued their joint venture was good for consumers and connectivity between the U.S. and Mexico.

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