US Appeals Court Upholds Delta-Aeroméxico Joint Venture
A US appeals court has overturned a Department of Transportation order that would have forced Delta Air Lines and Aeroméxico to dismantle their joint venture covering flights between the United States and Mexico.
The US 11th Circuit Court of Appeals has allowed Delta Air Lines and Aeroméxico to continue their joint venture covering flights between the United States and Mexico.
Delta Air Lines and Aeroméxico formed the joint venture in 2016 after receiving approval from US and Mexican regulators. The airlines never dismantled the joint venture, despite a Department of Transportation order in September 2025 that would have forced them to do so.
The Department of Transportation had argued that policies adopted by the Mexican government distorted competition and breached the 2015 US-Mexico Air Transport Agreement. The department had withdrawn approval and antitrust immunity from the Delta-Aeroméxico joint venture in September 2025, citing reductions in available slots at Mexico City International Airport and the government's decision to move cargo operations from MEX to Felipe Ángeles International Airport (NLU).
However, the 11th US Circuit Court of Appeals vacated the Department of Transportation order on August 20, 2026, finding that the DOT failed to adequately explain why it used a narrower competition analysis than it had applied in previous airline-alliance cases.
The court said the department "did not reasonably explain why it conducted a far more limited market analysis in this case than it has always done in the past." The court also questioned why the DOT imposed an open-skies requirement on Delta and Aeroméxico that it had not applied to similar US-Japan airline partnerships.
The ruling allows Delta and Aeroméxico to continue coordinating schedules, fares and capacity under the antitrust immunity granted to their partnership in 2016. The airlines can also share revenue from flights covered by the agreement.
The joint venture has become a central part of both airlines' networks between the two countries. Delta also owns approximately 20% of Aeroméxico.
The decision does not settle whether the partnership benefits or harms competition. The court ruled that the DOT had not adequately supported its decision, rather than determining that the joint venture is necessarily pro-competitive.
The Department of Transportation could attempt to terminate the arrangement again after conducting a broader market analysis and addressing the inconsistencies identified by the court. The DOT said it was reviewing the ruling and considering its legal options.
Aeroméxico said the joint venture and its antitrust immunity remain in effect, allowing the airlines to continue offering their coordinated network and services. Both carriers welcomed the ruling.
