Delta and Mexican flag carrier Aeroméxico will not have to end their extensive, decade-old joint venture, a federal appeals court has ruled.
The 11th U.S. Circuit Court of Appeals on Thursday overturned a 2025 order from the Department of Transportation that would have blocked almost all forms of cooperation between Delta and Aeroméxico, including coordinating on routes. The DOT argued that the alliance was harming competition and helping Mexico impose protectionist policies, but 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.
The department’s original order would have given Delta and Aeroméxico until October 2025 to demonstrate they still deserved the antitrust waiver that makes their joint venture possible. If their replies were not satisfactory, the DOT reserved the right to revoke authorization, which would make it much more difficult for the venture to operate in its current form.
Both Delta and Aeroméxico sued to block the order, and the court put it on hold until it could review the case.
“For nearly a decade, Delta’s 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,” Delta said in a statement. “We appreciate the 11th Circuit’s careful review and remain focused on ensuring our customers, employees, and communities continue to benefit from this longstanding partnership.”
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. Those violations allegedly included seizing slots from U.S. carriers at Mexico City International Airport and forcing U.S. cargo carriers out of the Mexico City market.
Attorneys for the DOT 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 and argued that unwinding it would cause “significant harm” to travelers, crossborder trade, and communities reliant on U.S.-Mexico air service.
Delta and Aeroméxico, which is headquartered in Mexico City, have had a close relationship since the 1990s. In the 2010s, the two airlines began codesharing and coordinating on some operations, including maintenance and repairs. An expanded partnership, which allowed the carriers to share information and jointly determine routes, was approved by Mexican regulators in 2015 and U.S. Transportation officials one year later, during the closing days of the Obama administration.
The deal set the stage for Delta to acquire up to 49% of Aeroméxico’s shares, and gave Delta a seat on Grupo Aeroméxico’s board. That stake was reduced after Aeroméxico’s restructuring, and Delta currently owns about 20% of the airline.
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.”
“We are encouraged by recent conversations with the government of Mexico and look forward to Mexico’s full compliance with the agreement,” the department added.
