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The Trump administration announced late yesterday that it is ordering Delta Air Lines and Aeromexico to unwind their nearly nine-year-old joint venture for flights between the United States and Mexico. I first wrote about this last year, but it seemed to stall. The move will strip the carriers of antitrust immunity, effectively preventing them from coordinating on scheduling, pricing, and capacity decisions as of January 1st. They will both continue to be members of SkyTeam and provide benefits as outlined by the alliance.
This decision follows months of speculation and reverses course from earlier delays under the Biden administration, which had considered similar action but never finalized it. The Delta and Aeromexico partnership began in 2016. It allowed the two airlines to operate as a single coordinated entity for cross-border flights. The carriers together account for roughly 60% of all passenger flights between Mexico City International Airport (MEX) and the United States. This arrangement has long been viewed as critical for tourism, business travel, and connectivity between the two countries. While the DOT is not requiring Delta to sell its 20% equity stake in Aeromexico, the ruling does block the airlines from jointly managing routes and fares.
The US Department of Transportation (DOT) cited actions by the Mexican government involving Mexico City International Airport (MEX) as the reason for ending the joint venture. The US government has raised concerns over airport access and operational limitations, which it says are restricting competition and favoring certain carriers. This decision is part of a broader strategy, as Washington has also warned European countries about potential actions over similar airport-related restrictions. This follows a tentative ruling announced in mid-2024 under the Biden administration. However, that administration stopped short of implementing the order. The Trump administration has now finalized the ruling and set a firm implementation timeline.
The termination of antitrust immunity does not completely sever ties between Delta and Aeromexico:
- The airlines can still collaborate in limited ways, such as offering reciprocal perks for frequent flyers and maintaining shared alliance membership under SkyTeam.
- They cannot act as a single entity for route planning, flight schedules, or fare pricing.
This means travelers may see more competition on popular routes between the United States and Mexico, but also potentially less seamless service. Both Delta and Aeromexico expressed disappointment in the ruling.
Delta and Aeromexico currently dominate routes between the United States. Their separation could open opportunities for other carriers, including American Airlines, United Airlines, and low-cost Mexican carriers like Volaris and Viva Aerobus. Mexico City International Airport (MEX) is the fourth-largest international gateway for flights to and from the United States. It’s at the center of the dispute and could see operational changes in the coming years. The DOT noted that the airlines may reapply for antitrust immunity if conditions at the airport improve and market access becomes more competitive.
Transportation Secretary, Sean Duffy, shared the following:
Joe Biden and Pete Buttigieg deliberately allowed Mexico to break our bilateral aviation agreement. That ends today. Let these actions serve as a warning to any country who thinks it can take advantage of the US, our carriers, and our market. America First means fighting for the fundamental principle of fairness.”
Anthony’s Take: As the airlines disconnect starting in 2026, travelers can expect changes to pricing, scheduling, and connectivity (and potentially greater competition on one of the busiest international corridors in North America).
(Image Credits: Delta Air Lines and Aeromexico.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
