The Trump administration has ordered Delta Air Lines and Aeroméxico to dissolve their joint venture by January 1. The partnership, which has lasted nearly nine years, allowed the carriers to coordinate scheduling, pricing, and capacity decisions for U.S.–Mexico flights. According to the U.S. Department of Transportation, the move is necessary because the joint venture creates anticompetitive effects in the U.S.–Mexico City market, giving Delta and Aeroméxico an unfair advantage. Together, the airlines now account for roughly 60 % of passenger flights from Mexico City Airport to the United States. Mexico City Airport is the fourth‑largest international gateway between the two countries.
The Department of Transportation first proposed ending the joint venture in July as part of a series of actions targeting Mexican aviation. Those actions were prompted by concerns over airport slot limitations and the potential for higher fares, reduced capacity, and challenges for U.S. carriers resulting from government intervention. In July, the department also acted against Mexico after the country cut flight slots and forced cargo carriers to relocate operations in Mexico City, affecting U.S. airlines. Additionally, the department warned European nations about similar airport limitations, emphasizing the need for fair competition in the aviation sector.
Delta expressed disappointment, arguing that the decision will harm U.S. jobs, communities, and travelers. The airline estimates the joint venture supports nearly 4,000 U.S. jobs and generates more than $310 million in U.S. gross domestic product. Aeroméxico likewise regretted the move, noting the alliance’s benefits for tourism and connectivity. Although the joint venture will end, the airlines’ codeshare agreement and reciprocal frequent‑flyer programs will remain in place. Delta warned that up to $800 million in annual consumer benefits could be lost and that about two dozen routes might be canceled.
The U.S. Transportation Department cautioned that Mexico’s market intervention and distortion of competition in the U.S.–Mexico air‑service market could have further consequences. The dissolution of the Delta‑Aeroméxico joint venture marks a significant development in U.S.–Mexico aviation relations, with potential implications for consumers, airlines, and the broader industry.
Comments are closed for this story.