US Regulators Order Delta and Aeromexico to Dissolve Joint Venture by 2026
US Regulators Order Delta and Aeromexico to Dissolve Joint Venture by 2026
In a significant move impacting trans-border air travel, the United States Department of Transportation (DOT) issued a final order on September 15, 2025, mandating Delta Air Lines and Aeromexico to terminate their nine-year joint venture by January 1, 2026.
The decision, effective in just over three months, will dismantle an agreement that allowed the two carriers to coordinate schedules, pricing, and capacity for flights between the US and Mexico. The DOT cited ongoing anticompetitive effects in the US-Mexico City markets, stating the partnership gave Delta and Aeromexico an unfair advantage.
Operating approximately 60% of passenger flights between Mexico City Airport and the United States, the unraveling of this cooperation is expected to significantly alter the landscape of one of the largest international gateways to and from the US. Both Delta and Aeromexico have expressed profound disappointment with the government’s decision, with Delta stating the termination would cause “significant harm to US jobs, communities and consumers.”
The DOT’s order follows earlier warnings amid an unrelated trade dispute and concerns over restrictive and “possibly discriminatory” policies by the Mexican government, including reductions in permitted aircraft movements and opaque slot allocation practices at Mexico City International Airport, which regulators believe undermine the principles of the 2015 US-Mexico Open Skies Agreement.
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