Delta and Aeromexico Joint Venture to End by January 2026

The U.S. Department of Transportation (DOT) has mandated that Delta Air Lines must terminate its joint venture with Aeromexico by January 1, 2026. This decision follows a lengthy dispute involving the two airlines and the U.S. and Mexican governments, which has lasted nearly two years.

Initially, the Biden administration indicated it would not renew the antitrust immunity that allowed Delta and Aeromexico to coordinate on fares and schedules. This arrangement went beyond their existing partnership within the SkyTeam alliance. The DOT’s ruling is rooted in concerns over anticompetitive practices at Mexico City’s Benito Juarez International Airport (MEX), where the Mexican government has been accused of favoring its national carrier, thereby hindering competition from other airlines.

The termination of this joint venture poses a risk to numerous routes connecting the U.S. and Mexico City. Delta and Aeromexico have expressed their opposition to the ruling, emphasizing that dismantling their partnership could lead to the closure of many routes and negatively impact travelers.

The joint venture, which has been in place for nearly a decade, has significantly enhanced cross-border travel between the two nations. According to aviation analytics firm Cirium, Aeromexico was set to increase its total seats to and from the U.S. by nearly 33% compared to 2019, while Delta anticipated a 17% growth in its own services to Mexico over the same period.

In a recent statement, Delta expressed disappointment with the DOT’s decision, asserting that it would inflict “significant harm to U.S. jobs, communities, and consumers traveling between the U.S. and Mexico.” It remains uncertain whether Delta and Aeromexico will pursue an appeal against the ruling.

Despite the dissolution of their joint venture, both airlines are likely to maintain some level of cooperation through their existing alliance. However, the unwinding of their deeper collaboration could still result in the discontinuation of various routes.

Both Delta and Aeromexico have consistently argued that their joint venture has been beneficial for consumers, enhancing connectivity and travel options between the U.S. and Mexico.