The Trump administration ruled on Monday that Delta must end its close ties with airline Mexico in January.
After 20 months of fighting between the two airlines and the U.S. and Mexican governments, the U.S. Department of Transportation said that this would not allow the joint venture between the two carriers to move forward.
According to Seth Miller’s first report on Paxex.Aero, their joint venture must end on January 1.
The move could leave dozens of routes between the dangerous U.S. and Mexico City.
Delta and airlines have been in conflict with the U.S. government since January 2024, when the Biden administration first said it would not update antitrust immunity that allows both airlines to freight and flight schedules, which goes far beyond the airline being the Sky Alliance Party’s airline.
Question: DOT said the Mexican government has participated in an anti-competitive strategy at the Benito Juarez International Airport (MEX) in Mexico City, preventing opportunities to travel to other airlines in favor of Mexico’s flag bearer.
Airlines protested the decision and warned that abandoning the joint venture would result in the closure of dozens of routes.
But after a lengthy scrutiny, DOT confirmed on Monday that the Delta-Arome Mexican joint venture, which will take effect on January 1, 2026, ended, believing that the competitive landscape in Mexico City has become worse in recent months – not better.
The joint venture between Delta and Air Mexico dates back nearly a decade and has seen the two carriers expand cross-border flights between the United States and Mexico.
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This year, American Airlines’ total seats to and from the U.S. compared to 2019 are nearly 33%. This includes a massive expansion earlier this year.
Delta is expected to raise its seat to Mexico, and six years ago, per Cirium.
In a statement to TPG late Monday, Delta said it was “disappointed” with the DOT’s ruling that would “cause significant harm to American work, communities and consumers traveling between the United States and Mexico.”
It is not clear whether the carrier plans to file an appeal.
Apart from that, you may see a level of cooperation between the two carriers continuing under their alliance partnership, but depending on the airline’s past application, it is possible that relaxing their deeper pairing could lead to the end of certain routes.
Delta and airlines repeatedly believe that their joint ventures are beneficial to consumers and connectivity between the United States and Mexico.
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