Delta and Aeroméxico win legal battle to save joint venture

The U.S. Court of Appeals for the Eleventh Circuit has overturned a decision by the Department of Transportation (DOT) to terminate the joint venture between Delta Air Lines and Aeroméxico. The ruling preserves the decade-old partnership and its antitrust immunity (ATI), which allows the two carriers to coordinate pricing, capacity, and revenue.

The dispute originated from DOT concerns regarding competitive fairness in the U.S.–Mexico market. The agency argued that recent measures by the Mexican government at Mexico City International Airport (MEX)—including slot restrictions and the transfer of cargo operations to Felipe Ángeles International Airport (NLU)—created an uneven playing field that unfairly benefited the Delta-Aeroméxico alliance.

In its unanimous decision, the three-judge panel found the DOT's order to dissolve the partnership by January 1, 2026, to be arbitrary and unreasonable under the Administrative Procedure Act. The court noted flaws in the agency's methodology, stating it deviated from standard practices of analyzing entire networks and country-city pairs.

Delta Air Lines stated that the partnership has supported American jobs and economic growth while providing consumers with increased connectivity and travel options. While the joint venture remains intact, the DOT noted it may re-evaluate the situation if competitive conditions in the region improve.