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U.S. Orders Delta and Aeroméxico to Unwind Their Alliance by January

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The Trump administration this Monday ordered Delta Air Lines and Aeroméxico to end their cooperation agreement by January 1, 2026. The pact, in effect for nearly nine years, allowed both airlines to coordinate schedules, fares, and capacity on flights between the United States and Mexico.

The Department of Transportation (DOT) explained that the measure aims to curb anti-competitive effects in the US-Mexico City market, as the alliance gave both companies an unfair advantage.

Impact on Mexico’s Most Congested Airport

Delta and Aeroméxico represent nearly 60% of passenger flights between Mexico City International Airport and the United States. This terminal is the fourth most important international gateway to and from the North American country.

Although the US government did not require Delta to sell its 20% stake in Aeroméxico, it emphasized that the airlines retain the flexibility to compete in the market independently and could reapply for approval of the agreement if conditions change.

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The Airlines’ Reaction

Delta expressed its disappointment with the decision and warned that canceling the agreement would cause “significant harm to jobs, communities, and consumers” traveling between the two countries. The company stated it is reviewing the order and evaluating next steps.

Aeroméxico, for its part, expressed regret over the resolution and stressed that the measure ignores the benefits the alliance provided in terms of tourism and connectivity. The company indicated it would continue working with Delta to define the future of their cooperation.

Both airlines confirmed that this decision will not affect current customers, as the code-share agreement and reciprocity of frequent flyer programs will remain in effect.

Jobs, Routes, and Benefits at Risk

Delta had previously stated that the alliance generated nearly 4,000 jobs in the US and over $310 million in US GDP. Furthermore, it warned that up to $800 million in annual benefits for consumers could disappear, along with the cancellation of 24 routes and the replacement of large aircraft with smaller equipment.

Context of Decision

In July, the DOT had foreshadowed its position after denouncing that the Mexican government reduced flight slots and forced cargo airlines to relocate operations, which directly affected US companies.

Transportation Secretary Pete Buttigieg had ordered Mexican airlines to hand over their flight schedules and warned that he could reject operation applications if Mexico did not address Washington’s concerns about decisions made in 2022 and 2023.

This Monday, the DOT insisted that Mexico maintains a policy of market intervention that harms bilateral competition, perpetuating a slot allocation system that does not meet international standards and favors Aeroméxico.

The US agency warned that if the alliance were to continue, it would have led to higher fares on certain routes, reduced capacity, and greater obstacles for US airlines due to government intervention in Mexico.

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