The long-standing partnership between Delta Air Lines and Aeromexico is set to end on January 1, 2026, following a decisive order from the U.S. Department of Transportation (USDOT). This move, announced on September 16, 2025, marks the conclusion of nearly a decade of close cooperation between the two carriers, who have jointly managed routes, shared revenues, and coordinated schedules for flights between the United States and Mexico since 2016.
The USDOT’s decision stems from mounting concerns over competition and market fairness. According to a department press release and reporting from Aerotime, the termination is a direct response to Mexico’s non-compliance with the 2015 U.S.-Mexico Air Transport Agreement, a pact designed to foster air travel and maintain a level playing field for airlines operating between the two nations. The DOT asserted, “Mexico’s non-compliance intervenes in the market to provide an unfair advantage to Delta and Aeromexico, who operated a price and capacity-setting joint venture with conditional approval by USDOT.”
At the heart of the dispute are several policy decisions by the Mexican government, particularly those affecting the Mexico City International Airport (AICM). The number of permitted operations at AICM was slashed from 61 to 44 per hour, and a ban was imposed on cargo-only flights at the airport. U.S. authorities, as cited by merca20, argue that these actions distort the market, restrict competition, and allow Delta and Aeromexico to dominate flight slots at the crucial hub.
In addition, Mexican authorities have faced criticism for failing to implement reforms recommended by their own competition watchdog, and for undermining transparent slot allocation at AICM. The USDOT concluded that the combined effect of these policies was to tilt the competitive balance, prompting the withdrawal of the antitrust immunity that had shielded the airlines’ collaboration from regulatory scrutiny.
“Empty promises mean nothing. After years of taking advantage of the U.S. and our carriers, we need to see definitive action by Mexico that levels the playing field and restores fairness,” U.S. Transportation Secretary Sean P. Duffy declared in the official release, underscoring the department’s frustration with what it sees as a lack of meaningful reform from the Mexican side.
With the alliance’s termination, Delta and Aeromexico will be required to discontinue all shared activities that have defined their partnership since 2016. This includes ending coordinated pricing strategies, capacity management, and revenue sharing. As of January 1, 2026, the two airlines will no longer operate as a joint venture on U.S.-Mexico routes. However, some forms of cooperation will continue: codeshare agreements, joint marketing efforts, and frequent flyer program reciprocity will remain intact. Delta will also retain its 20% equity stake in Aeromexico, and neither airline is required to suspend their current cross-border flights.
For travelers and workers, the fallout could be significant. Delta has warned that the move will “cause significant harm to U.S. jobs, communities and consumers traveling between the U.S. and Mexico,” as stated in a message on its website. Aeromexico echoed this sentiment, lamenting that the decision overlooks the connectivity and tourism benefits the alliance provided. The Pilots Union (ASPA) in Mexico has also voiced concerns, warning of potential reductions in flight hours and income for airline staff. According to estimates reported by merca20, nearly 1.8 million seats could be affected by the dissolution of the joint venture.
From an economic standpoint, the impact is expected to be wide-ranging. Delta and Aeromexico jointly estimate that the end of their alliance will result in a loss of at least $510 million. Breaking that down, $310 million would be lost from the United States’ Gross Domestic Product (GDP), and another $200 million would come from decreased tourism-related spending. The fate of 20 strategic routes, vital for business and leisure travel alike, now hangs in the balance, along with the broader economic multiplier effect generated by jobs and cross-border tourism.
Consumers, meanwhile, may find themselves facing fewer flight options and potentially higher fares. The airlines argue that the operational efficiencies and connectivity made possible by their alliance helped keep prices competitive and routes plentiful. Now, with those efficiencies set to evaporate, travelers could feel the pinch—especially on routes where Delta and Aeromexico previously pooled resources.
The DOT’s move is not without political undertones. The decision follows a series of warnings issued by the department in July 2025, as trade tensions between Mexico and the United States have simmered, particularly during and after the Trump administration. According to merca20, the withdrawal of antitrust immunity is part of a broader strategy to pressure Mexico into opening its air market to greater competition and adhering to the spirit of the 2015 bilateral agreement. The USDOT has left the door open to future reassessment, but made it clear that any review will “take time” and must be based on “concrete actions, not empty promises.”
Despite the impending breakup, both airlines have emphasized their commitment to minimizing disruption for customers. Aeromexico assured passengers that it will continue to offer connectivity through its codeshare agreement, and that changes will not immediately affect customers. Delta, for its part, stated that all flights will continue to operate as normal unless otherwise announced. Behind the scenes, both companies are evaluating their next steps, seeking ways to preserve collaboration within the new regulatory boundaries.
Industry observers note that the end of the Delta-Aeromexico alliance is emblematic of a broader global trend: governments are increasingly scrutinizing airline partnerships for their impact on competition, consumer choice, and national interests. The joint venture model, once hailed for its ability to streamline operations and foster global networks, is now under the microscope as regulators seek to balance the benefits of cooperation with the imperative of fair competition.
Ultimately, the dissolution of this high-profile alliance is a stark reminder that international air travel is shaped as much by politics and policy as by market forces. For now, passengers and industry stakeholders on both sides of the border will be watching closely to see how the airlines adapt—and whether a new era of competition will deliver on the promises of improved service and lower fares.
