US DOT orders Delta, Aeroméxico to end joint venture over ‘unfair’ competition

The US Department of Transportation (DOT) has ordered Delta Air Lines and Aeroméxico to end their eight-year joint venture, stating that it gives both airlines an “unfair advantage” as two predominant competitors. 

On September 15, 2025, the US DOT issued a final order, stating that the joint venture must end by January 1, 2026, preventing the two airlines from jointly coordinating operations between the US and Mexico. 

The US DOT explained that this decision is essential because of “ongoing anticompetitive effects in US-Mexico City markets that provide an unfair advantage to Delta and Aeromexico as two predominant competitors and create unacceptable actual and potential harm for stakeholders, including consumers.” 

The department noted that the Government of Mexico (GoM) confiscated slots, prohibited all cargo operations at Mexico City’s primary airport, Benito Juarez International Airport (MEX), and generally demonstrated that, at any time, the GoM “may upset aviation operations and long-term commercial planning by airlines through arbitrary action”. 

As a result, the US DOT stated that “it is inappropriate for the Department to continue a grant of antitrust immunity (ATI) because there is inadequate competition in the market.” 

The US DOT warned that significant issues are not just possible but likely: increased fares in certain markets, stifled innovation, and reduced capacity, including fewer flights and new routes. The department stated that it is already witnessing some of these effects in the US-Mexico market. 

The decision to end the joint venture comes after the US Department of Justice (DOJ) backed the removal of antitrust immunity for the Delta–Aeroméxico partnership in August 2025, citing the same concerns echoed by the DOT. These include limited competition, restrictive slot practices at Benito Juárez Airport, and the airlines’ dominant market share on US-Mexico routes. 

Airlines retain “flexibility” to work together 

In response to the move, Delta, which holds a 20% stake in Aeroméxico valued at $376 million, released a statement expressing that the airline is “disappointed” by the decision and is currently “reviewing the Department’s order and considering next steps”. 

However, the US DOT confirmed that Delta is not required to sell its equity and stated that even without a grant of ATI, Delta and Aeroméxico have “considerable flexibility to compete in the market and to work together to maintain and enhance their joint offerings”. 

Additionally, Delta and Aeroméxico “will continue to have every economic incentive to cooperate in the US-Mexico market even without ATI” due to shared commercial interests stemming from the carriers’ participation in the SkyTeam alliance, and the commercial imperative to maintain their shares in a growing international market. 

Aeroméxico and Delta established a comprehensive partnership through a joint cooperation agreement (JCA) back in May 2017. This collaboration enabled both airlines to align their schedules, share revenues, and jointly oversee routes between the US and Mexico. The post US DOT orders Delta, Aeroméxico to end joint venture over ‘unfair’ competition appeared first on AeroTime.

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