A PYMNTS Company

US Court Temporarily Blocks Order to Unwind Delta–Aeromexico Partnership

By  |  November 13, 2025
AeroMexico

A U.S. appeals court on Wednesday temporarily halted a government directive that would have forced Delta Air Lines and Aeromexico to dismantle their nearly decade-old joint venture by Jan. 1, according to Reuters. The ruling pauses an order issued in September by the U.S. Department of Transportation (DOT), which had moved to revoke the partnership amid broader concerns about competition in Mexico’s aviation sector.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The airlines had sued to prevent the DOT’s decision from taking effect, arguing that unwinding the arrangement—which allows the carriers to coordinate routes, pricing, scheduling, and capacity on U.S.-Mexico flights—would impose significant costs that could not be recovered even if courts later sided with them. A three-judge panel granted the temporary stay, citing an earlier ruling that outlines the standards for pausing federal administrative actions, per Reuters.

    Delta said it appreciated “the court’s decision to pause the wind-down of the Delta/Aeromexico strategic partnership while it reviews the validity of the DOT’s order.” Aeromexico also stated that the joint venture will remain in place as the legal challenge proceeds.

    Related: DOT Orders End to Delta-Aeroméxico Partnership Over Competition Issues

    The DOT’s actions come as part of a series of U.S. government measures scrutinizing Mexico’s aviation practices. Last week, both the Justice and Transportation Departments described the Delta–Aeromexico alliance as “legalized collusion” that accounts for “almost 60% of operations at the fourth-largest international gateway to and from the United States,” referring to traffic involving Mexico City, according to Reuters. Delta, which holds a 20% stake in Aeromexico, has countered that the Trump administration is subjecting this partnership to stricter scrutiny than similar ventures, including collaborations involving United Airlines and ANA.

    Federal officials have said the joint venture may lead to higher fares, reduced capacity, and fewer competitive options for U.S. travelers. Their pressure on Mexico’s carriers has intensified in recent months: the Trump administration recently revoked approval for 13 routes operated by Mexican airlines into the United States and canceled all combined passenger and cargo flights into the U.S. from Mexico City’s Felipe Angeles International Airport.

    Transportation Secretary Sean Duffy said Mexico “illegally canceled and froze U.S. carrier flights for three years without consequences.” Mexican President Claudia Sheinbaum has said she disagrees with Washington’s decision to pull approval for the 13 routes.

    Source: Reuters