US Court Pauses Order to Unwind Aeroméxico–Delta Joint Venture

The U.S. Court of Appeals for the Eleventh Circuit has temporarily halted the Department of Transportation’s (DOT) order requiring Delta Air Lines and Aeroméxico to dissolve their joint venture by January 1, 2026.

The decision follows a lawsuit filed in October by both carriers, who argued that dismantling the partnership on such a short timeline would be operationally and financially disruptive, given that the two airlines “are inextricably a single entity in the cross-border market.” The Trump administration had urged the court to deny the request.

Delta said it welcomed the court’s decision to pause the wind-down while the legality of the DOT’s order is reviewed. Aeroméxico stated that the joint venture will remain in place as the case proceeds.

The two airlines control a combined 20.1% of the U.S.–Mexico market (10.6% for Aeroméxico and 9.5% for Delta), according to Mexican government data. Volaris leads with 20.2%, followed by American Airlines at 17.4% and United Airlines at 13.3%.

Earlier this year, the DOT deemed the joint venture anticompetitive and ended the renewal process for its antitrust immunity. The regulator argued that the Mexican government distorted the transborder market by restricting slots at México City International Airport and forcing all-cargo carriers to relocate to México City Felipe Ángeles. The U.S. Department of Justice supported the DOT’s findings.

The proposed unwinding of the joint venture is one of several actions the U.S. government has taken to address what it views as violations of the bilateral air transport agreement. Other measures include scheduling limits for Mexican carriers operating to the U.S., blocking 13 planned routes from Mexico City’s two main airports and considering a ban on belly cargo between México City International (MEX) and the United States.

Mexican officials plan to travel to Washington in early December for further negotiations. Both governments have agreed on a roadmap and aim to resolve the aviation dispute by year-end. Neither side is pursuing international arbitration.

Aeroméxico challenges proposed belly cargo ban
On November 12, Aeroméxico objected to the DOT’s proposal to prohibit Mexican carriers from transporting belly cargo from MEX to the U.S. The DOT claimed that presidential decrees in 2022 and 2023 violated the air transport agreement and created a competitive imbalance.

Aeroméxico countered that the DOT provided “no evidence” of harm or imbalance and argued the ban would disrupt markets and hurt shippers and consumers. The carrier urged both governments to resolve disagreements through formal consultations.

Aerus, another carrier named in the DOT proposal, has requested removal from the ban, noting that it operates only passenger services and does not transport cargo.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com