The Trump administration has ordered Delta Air Lines and Aeromexico to end their joint venture by January 1, citing anticompetitive effects in the US–Mexico City air travel market.
In a filing late Monday, the US Department of Transportation (DOT) said the partnership, which began in 2016, gave the carriers undue dominance and created “unacceptable actual and potential harm for stakeholders, including consumers.” The arrangement allowed Delta and Aeromexico to coordinate flight schedules and pricing across the border.
Both airlines criticized the decision. Delta said the move would “cause significant harm to US jobs, communities and consumers traveling between the US and Mexico.” Aeromexico added that, while the joint venture would end, it would continue to honor reciprocal frequent flyer benefits and cross-airline booking agreements.
The ruling follows years of scrutiny. The Biden administration had previously weighed withdrawing antitrust immunity from the venture amid broader disputes with Mexico over competition. In July, the DOT proposed dissolving the partnership, which the airlines argued had contributed $310 million to the US economy and that its end would benefit competitors.
The order does not affect Delta’s 20% equity stake in Aeromexico.
