Delta-Aeroméxico Joint Venture
A federal appeals court has ruled in favor of Delta and Aeroméxico, allowing their joint venture to continue
Delta and Aeroméxico will not have to end their decade-old joint venture, thanks to a ruling by the 11th U.S. Circuit Court of Appeals. The court overturned a 2025 order from the Department of Transportation that would have blocked most forms of cooperation between the two airlines.
The Department of Transportation had argued that the alliance was harming competition and helping Mexico impose protectionist policies. However, the court found that regulators acted in an arbitrary manner by evaluating the partnership differently than other joint ventures in the U.S. airline industry.
Background on the Joint Venture
The joint venture between Delta and Aeroméxico was first approved by Mexican regulators in 2015 and U.S. Transportation officials in 2016. The deal allowed the carriers to share information and jointly determine routes. It also set the stage for Delta to acquire up to 49% of Aeroméxico's shares, although that stake was later reduced to around 20% after Aeroméxico's restructuring.
According to Delta, the joint cooperation agreement with Aeroméxico has provided greater choice, more seamless travel, and increased connectivity for consumers while supporting U.S. jobs and economic growth. The airline appreciates the 11th Circuit's careful review and remains focused on ensuring its customers, employees, and communities continue to benefit from this longstanding partnership.
The Dispute
The Trump administration first moved to cancel the joint venture in July 2025, citing Mexico's alleged violations of a 2015 air transportation agreement with the U.S. government. Attorneys for the Department of Transportation said that continued legal protections for Delta and Aeroméxico would only reinforce Mexico's poor behavior and help the two carriers retain unfair control over U.S.-Mexico passenger and cargo traffic.
The two airlines defended their relationship, arguing that unwinding it would cause significant harm to travelers, crossborder trade, and communities reliant on U.S.-Mexico air service. The court's ruling has put an end to the dispute, at least for now.
Next Steps
Following the 11th Circuit's ruling, the Department of Transportation told Reuters that it will evaluate its options and continue to work with the Mexican government to ensure it fulfills its obligations and treats all U.S. carriers fairly. The department is encouraged by recent conversations with the government of Mexico and looks forward to Mexico's full compliance with the agreement.
The Department of Transportation's statement suggests that the issue is not yet fully resolved, and the agency may still take further action. However, for now, the joint venture between Delta and Aeroméxico can continue to operate as usual, providing benefits to consumers and supporting U.S. jobs and economic growth. Delta currently owns about 20% of Aeroméxico, a stake that was reduced after Aeroméxico's restructuring.
