The U.S. Department of Transport has ordered Delta Air Linesto null its joint venture accord with Aeromexico come 01JAN2026. The decision ends a 20-months lasting quarrel between the two carriers and the U.S. government which significantly aggravated since Trump’s inauguration last February. As consequence of the DOT’s decision, multiple routes between Mexico City and the U.S. might be cancelled, affecting passenger flights and cargo transports negatively.
Washington’s decision ends a dispute between Delta (DL) and Aeromexico (AM) on the one hand and the U.S. government on the other, which began in early 2024 under the former Biden administration. The dissent was triggered by the opening of the new Felipe Angeles Airport (AIFA), located 35 km north of Mexico City. Once operational, the Mexican aviation authority gradually reduced the number of slots at the centrally located Aeropuerto International Ciudad de Mexico (AICM). The aim was to shift traffic to the new airport, primarily cargo flights, but also passenger traffic.
DOT speaks of one-sided advantages
The slot cuts at AICM affected all airlines, including Mexican carriers, but it keeps benefitting Aeromexico’s cargo business disproportionally since Aeromexico is the only network carrier that was allowed to remain at AICM. All the others were forced by the country’s aviation authority to move their operations to the newly built AIFA. This fuels the U.S. view that, behind an appearance of fairness, lies an anti-competitive strategy. In a statement released on 25SEP25, the DOT argues that the DL-AM JV created an unfair advantage for both airlines over their competitors, distorting the U.S.-Mexico air traffic market, particularly in the capital region of Mexico City. This advantage stemmed from factors including the airlines’ coordination on pricing and capacity, as well as allegedly unfair slot allocations at AICM. DOT reasoned that this situation distorted competition and caused harm to consumers.
Poorly communicated decision
In a conference call, Willie Walsh, Director General of the International Air Transport Association (IATA), expressed some understanding about Washington’s decision. “The industry was angry with the measures that were taken by the Mexican government in relation to the forced transfer of flights,” the IATA official exclaimed. “It doesn’t surprise me that the U.S. administration would take these measures to try and encourage the Mexican government to reevaluate the decisions that they had taken.”
Walsh emphasized that the Mexico government’s decision to reallocate operations between airports was very poorly communicated at the time, and thus he considers the DOT’s action a “natural progression of geopolitical issues.”
Despite the termination of their JV, both carriers will still be able to collaborate on codeshare, marketing, and frequent flyer programs.
DL and AM fear adverse effects for their customers
Approached by U.S. media, Delta management regretted the DOT decision and expressed its disappointment by the ruling. It would cause “significant harm to U.S. jobs, communities and consumers traveling between the U.S. and Mexico.” It is not clear yet whether the two airlines intend to file an appeal.
Since the signing of their JV eight years ago, the two carriers have constantly expanded their cross-border flying between the U.S. and Mexico.
According to data from aviation analytics firm Cirium, in 2025, Aeromexico’s total seats to and from the U.S. were set to be up nearly 33% compared with 2019 figures, while Delta grew its seats to Mexico by 17% during the same time span.
Delta owns 36.2% in Grupo Aeromexico and holds options to acquire an additional 12.8% stake in the Mexican Aviation Group.
