U.S. Orders Delta and Aeroméxico to End Alliance, Citing Unfair Treatment by Mexico

The U.S. Department of Transportation on Tuesday revoked antitrust immunity for the long-running commercial alliance between Delta Air Lines and Aeroméxico, saying Mexico’s handling of airport operations in Mexico City gave domestic carriers an unfair advantage over U.S. airlines.

Transportation Secretary Sean Duffy said the immunity, granted in 2016 and which allowed the carriers to align pricing, schedules and revenue sharing, no longer should be maintained while Mexico enforces limits that disadvantage U.S. carriers. The order follows Duffy’s July warning that he would act if Mexico did not take steps to restore what he described as a level playing field.

Duffy singled out Mexico’s decision to move cargo operations from Benito Juárez International Airport to the newer Felipe Ángeles International Airport and to reduce slots at Benito Juárez to allow for construction that he says has not occurred. He said those actions, implemented by Mexico in recent years and reinforced in 2022, have given Mexican carriers an advantage and potentially violate trade commitments between the two countries.

"Empty promises mean nothing," Duffy said. "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." The department said the revocation would take effect in January; until then, it said, there would be no changes to flights or loyalty programs.

Mexican President Claudia Sheinbaum has defended the transfer of some operations to Felipe Ángeles as a technical decision made to relieve congestion at Benito Juárez. Sheinbaum said any further changes should be made on technical and safety grounds and said the decision was not intended to target U.S. airlines. "There is no reason to impose any sanctions related to this matter," she said after Duffy first issued the threat in July.

Delta and Aeroméxico said they were disappointed by the department’s decision and have not yet decided whether to challenge it. In regulatory filings, the carriers argued they should not be penalized for decisions by the Mexican government and warned the move could harm consumers and economies on both sides of the border.

Delta said the order "will cause significant harm to U.S. jobs, communities and consumers traveling between the U.S. and Mexico." Aeroméxico said the decision "overlooks the benefits that the alliance has brought to connectivity, tourism, and consumers in Mexico." The carriers said they expect to continue cooperating in a reduced capacity while they assess next steps.

In filings cited by the Transportation Department, the two airlines estimated the loss of close cooperation could deter more than 140,000 American tourists and nearly 90,000 Mexican tourists from traveling to the other country, with corresponding economic impacts from reduced visitor spending. Aviation analytics firm Cirium said Delta and Aeroméxico operated more than 30,000 flights between the United States and Mexico last year.

The dispute has unfolded against the backdrop of broader tensions between the United States and Mexico over trade policy and border security. The Biden administration’s transportation action follows complaints from U.S. carriers that the remoteness of Felipe Ángeles — more than 30 miles from central Mexico City and a drive time of up to two-and-a-half hours — and slot allocations at Benito Juárez have discouraged international airlines from serving the new airport and skewed competition in favor of domestic carriers.

Competing Mexican low-cost carriers such as Viva Aerobús and Volaris expanded operations at Benito Juárez after the collapse of Interjet during the COVID-19 pandemic, while Aeroméxico acquired about half of Interjet’s slots and also increased its presence in Mexico City. The Transportation Department framed its decision as an enforcement measure to address those market distortions.

The revocation of antitrust immunity marks a rare direct intervention by the U.S. government into airline commercial alliances over foreign airport policies. The department said it would monitor developments and expects Mexico to take concrete steps to mitigate the competitive imbalance that prompted the decision.