U.S. Court Blocks DOT Order to Undo Delta–Aeromexico Partnership

A U.S. appeals court has temporarily paused a government directive requiring Delta Air Lines and Aeromexico to dismantle their long-standing joint venture, offering both carriers a brief reprieve as their legal challenge continues. The Department of Transportation (DOT) had ordered the airlines to unwind the nearly nine-year partnership by January 1, citing anticompetitive concerns involving U.S.–Mexico routes. The joint venture currently allows Delta and Aeromexico to coordinate flight schedules, pricing, and capacity across key markets.

The airlines argued that ending the agreement so abruptly would cause significant and irreversible financial harm, even if the venture were later reinstated by the courts. A three-judge panel granted the temporary halt, referencing precedent for blocking administrative actions while their legality is reviewed. Delta welcomed the ruling, saying it values the opportunity to maintain its strategic alliance with Aeromexico as the judicial process unfolds. Aeromexico also confirmed that the partnership will remain active during the appeal.

The DOT declined to comment, but U.S. regulators—particularly the Justice and Transportation Departments—have recently intensified scrutiny of Mexico’s aviation sector. Last week, officials labeled the joint venture “legalized collusion,” noting that it accounts for nearly 60% of operations between the U.S. and Mexico’s busiest international gateway, Mexico City. They warned the partnership could lead to higher fares, reduced flight capacity, and fewer competitive options for U.S. carriers.

Delta, which holds a 20% stake in Aeromexico, contends the Trump administration is applying a harsher standard to this alliance compared to similar ventures, including those involving United Airlines and ANA. The dispute comes amid additional U.S. actions affecting Mexican carriers, such as revoking approvals for 13 Mexico-to-U.S. routes and suspending combined passenger and cargo flights from Mexico City’s Felipe Angeles International Airport.

U.S. Transportation Secretary Sean Duffy accused Mexico of improperly blocking U.S. carriers for years, while Mexican President Claudia Sheinbaum criticized the U.S. decision to revoke approved routes. The court’s temporary stay keeps the joint venture intact as the broader regulatory and diplomatic battle continues.