U.S. Threatens to End Delta-Aeromexico Alliance Over Aviation Dispute with Mexico

The U.S. Department of Transportation (DOT) has escalated its ongoing dispute with the Mexican government by threatening to revoke antitrust immunity for the Delta Air Lines–Aeromexico joint venture, potentially disrupting one of the most significant air travel partnerships between the two countries. The move comes in response to alleged violations of the 2015 U.S.-Mexico Open Skies agreement.

In a formal filing issued Saturday, the DOT said it would require Mexican airlines to provide detailed data on their U.S.-bound operations by July 29 to assess whether they are in breach of applicable regulations or harming the public interest. The agency also announced that prior approval will now be required for all passenger or cargo charter flights using large aircraft between Mexico and the United States.

The dispute stems from capacity restrictions imposed since 2022 at Mexico City’s Benito Juárez International Airport (MEX), which forced foreign carriers including American, Delta, and United to relocate some operations to Felipe Ángeles International Airport (NLU), nearly 50 kilometers from downtown Mexico City. In 2023, U.S. cargo carriers were also required to vacate MEX entirely, triggering a sharp increase in operating costs.

According to the DOT, these measures have "distorted the market" and violated Mexico’s obligations under the air transport accord, resulting in millions of dollars in losses for U.S. companies. As a consequence, the department is considering suspending the joint venture’s authorization to coordinate schedules, pricing, and revenue-sharing, which would effectively dismantle its current business model.

Without antitrust immunity, Delta and Aeromexico would be forced to cease close operational cooperation, though they would still be permitted to maintain codeshare agreements, frequent flyer reciprocity, and joint marketing efforts. Delta would also retain its equity stake in Aeromexico and continue flying its current routes between the two countries.

Both airlines have publicly opposed the DOT’s move, calling it an “unfair punishment” for policy decisions made by the Mexican government. Delta warned that the move would cause significant harm to travelers, jobs, cross-border competition, and airline connectivity between the U.S. and Mexico.

The outcome of the dispute could mark a pivotal moment for U.S.-Mexico aviation relations, with broad implications for airline networks, passenger convenience, and commercial air traffic across North America.