US Withdraws Antitrust Immunity for Delta-Aeromexico Pact

(Bloomberg) -- President Donald Trump’s administration revoked antitrust immunity for the agreement between Delta Air Lines Inc. and Grupo Aeromexico to plan and price flights from the start of 2026.

The US Department of Transportation, which warned of impending action in July, cited no improvement in Mexico’s anti-competitive behavior in the air travel market between the two countries, according to its ruling.

Mexico’s government “continues along a path of market intervention and distortion that adversely affects competition,” the Transportation Department added.

The administration said the airlines are the predominant competitors operating between the US and Mexico City, giving them an “unfair advantage.” The partnership presented “unacceptable actual and potential harm for stakeholders, including consumers,” the Transportation Department said.

In a statement Tuesday, Transportation Secretary Sean Duffy said the Trump administration will continue to take action against any country that “thinks they can distort the rules.” The department said it’s monitoring other countries, including in Europe, that may be violating the terms of air transport agreements.  

Delta, in a statement, said that ending its joint venture with Aeromexico would hurt not just US jobs but also consumers.

Aeromexico “regretted” the decision because it overlooks the partnership’s connectivity benefits to consumers and tourism, the airline said in a statement. Aeromexico and Delta are assessing next steps for the alliance, it said. The carriers will continue their code share agreement, Aeromexico said.

The ruling comes at a time of strained relations between Mexico and the US. Mexico is under growing pressures as it grapples with Trump’s tariff policies amid its close trading relationship with China.

The Transportation Department alleges that Mexico has been acting outside of a 2015 agreement since 2022, taking slots away from US carriers and restricting air cargo flights at Mexico City’s Benito Juarez International Airport. The move was part of Mexican efforts to drive cargo traffic to the newly built airport outside of Mexico City.

--With assistance from Valentine Hilaire and Allyson Versprille.

(Updates with statement from DOT secretary in fifth paragraph.)

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