US DOT Directs Delta and Aeroméxico to Cease Joint Venture Amidst Competition Issues

The US Department of Transportation (DOT) has mandated that Delta Air Lines and Aeroméxico terminate their joint venture, which has been in place for eight years. The DOT believes this partnership grants the airlines an “unfair advantage” as they compete in the market.

On September 15, 2025, the DOT issued a final order requiring that the joint venture cease operations by January 1, 2026. This decision prevents the two airlines from coordinating their operations between the US and Mexico.

The reasoning behind the DOT’s decision is centered on the “anticompetitive effects” observed in the US-Mexico market. The DOT emphasized that this cooperation creates an imbalance, ultimately harming consumers and other stakeholders.

Additionally, the DOT highlighted issues arising from actions taken by the Government of Mexico (GoM), including confiscation of flight slots and a ban on cargo operations at Mexico City’s Benito Juárez International Airport (MEX). Such actions disrupt airline operations and long-term planning.

As a result, the US DOT concluded that it is unsuitable to maintain any antitrust immunity (ATI) given the inadequacy of competition in the sector.

The department warned that the ramifications could include higher fares, stifled innovation, and diminished capacity—leading to fewer flights and routes. These effects are already being observed in the US-Mexico travel market.

This decision follows the US Department of Justice’s (DOJ) recommendation in August 2025 to revoke antitrust immunity for the Delta–Aeroméxico collaboration, raising similar concerns regarding limited competition and the airlines’ dominant presence on US-Mexico routes.

Airlines Maintain Flexibility to Collaborate

In light of the announcement, Delta, which has a 20% stake in Aeroméxico valued at $376 million, expressed disappointment and is currently reviewing the DOT’s directive.

However, the US DOT clarified that Delta does not need to divest its stake. Even without ATI, Delta and Aeroméxico will retain substantial flexibility to compete and work together in the market.

The two airlines will continue to have strong economic incentives to collaborate in the US-Mexico market, driven by shared commercial interests linked to their membership in the SkyTeam alliance and the need to sustain their market shares in an expanding international landscape.

Initially, Delta and Aeroméxico formed a comprehensive partnership via a joint cooperation agreement (JCA) in May 2017, allowing them to synchronize schedules, share revenues, and manage routes between the two countries.