Key Points:
- U.S. ends Delta and Aeromexico pact over unfair market edge.
- Mexico’s airport limits breach Open Skies agreement.
- Airlines warn of travel, tourism, and job losses.
The U.S. Department of Transportation has ordered Delta and Aeromexico to dissolve their partnership due to concerns that Mexico’s market environment gives domestic carriers an advantage. The decision affects a longstanding alliance that allowed the two airlines to coordinate pricing, schedules, and revenue-sharing since 2016.
Transportation Secretary Sean Duffy announced that the antitrust immunity supporting the collaboration would be revoked. The immunity had allowed both airlines to jointly plan operations, but concerns were raised about restrictions on passenger and cargo flights into Mexico City that benefit local carriers.
Effects on Cross-Border Air Travel
Delta and Aeromexico operate more than 30,000 flights annually between the U.S. and Mexico, carrying over 40 million passengers last year. Their alliance has contributed significantly to facilitating cross-border travel, boosting tourism, and supporting business connections.
The Delta and Aeromexico partnership’s termination is expected to impact travel patterns and economic activity. Delta’s leadership warned that over 140,000 American tourists and nearly 90,000 Mexican visitors might reduce travel between the two countries, potentially affecting local businesses, communities, and hospitality sectors. Aeromexico added that the partnership had helped improve connectivity and tourism, offering consumers more options for flights and travel routes.
Even with the upcoming changes, both airlines plan to maintain cooperation in areas where feasible, although tighter coordination will be restricted. In filings to regulatory authorities, the airlines pointed out that competition remains strong, with other carriers expanding their services. For example, Viva Aerobus and Volaris have grown their operations at Mexico City’s Benito Juarez airport following the collapse of Interjet during the pandemic.
Operational Changes and Industry Adjustments
The ruling is scheduled to take effect in January 2026. Until then, passengers will not experience immediate changes in flight operations, schedules, or loyalty programs. Both carriers are currently evaluating their next steps and have not ruled out challenging the decision.
Industry experts note that while the Delta and Aeromexico partnership offered provided operational advantages, market adjustments have already created alternative opportunities. Competing airlines have expanded into newly available airport slots, helping maintain capacity and options for travelers. Despite potential disruptions, market forces are expected to support adjustments over time.
Delta expressed concern that the ruling could introduce uncertainty, potentially disrupting customer experience and travel plans. Aeromexico emphasized that the benefits the alliance brought to connectivity and tourism should be recognized by industry stakeholders.
Outlook for Airlines and Travelers
As air travel continues to recover from pandemic-related challenges, industry observers are monitoring how regulatory shifts, bilateral agreements, and infrastructure constraints may reshape airline operations. Both Delta and Aeromexico are among the largest players on the U.S.-Mexico route, and changes to their partnership could influence travel demand and pricing strategies across the region.
The airlines’ network adjustments and any future collaborations will be key factors in how the market adapts to the new framework. Analysts expect that competition from existing and emerging players will help absorb some of the potential fallout while encouraging airlines to innovate in service offerings and route optimization.
With global travel trends evolving, stakeholders in tourism, hospitality, and commerce are closely watching how the dissolution of this major airline partnership will affect long-term growth and connectivity between the U.S. and Mexico.
