U.S. Transportation Department orders Delta–Aeromexico joint venture to end by 2026 amid compliance dispute

The U.S. Department of Transportation (USDOT) has issued a final order to terminate the joint venture between Delta Air Lines and Aeromexico, withdrawing its antitrust immunity and requiring the partnership to wind down by January 1, 2026.

The decision follows what USDOT describes as Mexico’s continued noncompliance with the 2015 U.S.-Mexico Air Transport Agreement, including slot restrictions and the forced relocation of U.S. cargo carriers at Mexico City’s Benito Juarez International Airport.

Transportation Secretary Sean P. Duffy framed the move as part of the administration’s “America First” agenda, arguing that Mexico’s actions distort competition and disadvantage U.S. carriers. He emphasised that antitrust immunity is a privilege, not a right, and pledged to enforce aviation agreements more strongly to ensure fairness and open markets.

The termination means Delta and Aeromexico must end joint activities such as coordinated pricing, capacity management, and revenue sharing. However, they may continue limited cooperation through codesharing, marketing, frequent flyer programmes, and Delta’s equity stake in Aeromexico.

Delta responded with disappointment, calling the decision “harmful to U.S. jobs, communities, and consumers travelling between the U.S. and Mexico.” The airline confirmed that all flights will continue to operate normally and said it is reviewing the order and evaluating next steps.