The Trump administration is defending an order by the Transportation Department that requires Delta Air Lines and Aeroméxico to dissolve their joint venture, saying the agreement gives them excessive control over U.S.-Mexico flights.
In a court filing Monday, the government said the Transportation Department “validly decided to no longer authorize legalized collusion” between two airlines that together control nearly 60% of operations at Mexico City International Airport, one of the largest international gateways to and from the United States.
The joint venture, first approved in 2016 under antitrust immunity, allowed Delta and Aeroméxico to coordinate on “prices, capacity and operations,” according to the department’s Final Order 2025-9-8 issued in September.
The DOT said the alliance reduces competition in the U.S.-Mexico market and that terminating approval “serves the public interest.” The order requires the partnership’s immunity to end by Jan. 1, 2026, unless delayed by a court.
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A Justice Department filing in August backed the decision, saying the agency “conducted an analytically rigorous evaluation of the competitive effects … consistent with its statutory authority and its public-interest mandate.”
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Delta and Aeroméxico have asked the 11th U.S. Circuit Court of Appeals to block the order.
The airlines have argued that the partnership arguing the partnership benefits travelers and delivers “hundreds of millions of dollars in annual consumer benefits.” The decision does not require Delta to sell its 20% stake in Aeroméxico.
If upheld, the Trump administration’s move would roll back an Obama-era airline deal that had allowed the airlines to act jointly despite antitrust concerns – a shift aimed at restoring fair competition in cross-border air travel.
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