The U.S. Department of Transportation has terminated the approval of the antitrust immunity agreement between Delta Air Lines and Aeromexico, citing Mexico's noncompliance with the 2015 U.S.-Mexico Air Transport Agreement, the agency announced Tuesday.
The joint venture must wind down by Jan. 1, 2026, according to the agency.
DOT in July announced restrictive actions on flights to Mexico that threatened the carriers' joint venture, and the U.S. Department of Justice in August sided with DOT on revoking the Delta-Aeromexico antitrust immunity.
"After years of taking advantage of the U.S. and our carriers, we need to see definitive action by Mexico that levels the playing field and restores fairness," DOT Secretary Sean Duffy said in a statement.
Mexico has not been in compliance with the bilateral agreement since 2022, according to DOT, when it rescinded slots at Benito Juarez International Airport and required cargo operations to move to another facility outside of Mexico City.
"We are disappointed that that Department of Transportation has chosen to terminate its approval of the strategic and pro-competitive partnership between Delta and Aeromexico, a decision that will cause significant harm to U.S. jobs, communities and consumers traveling between the U.S. and Mexico," Delta said in a statement. "We are reviewing the Department's order and considering next steps."
"Aeromexico regrets this decision, which overlooks the benefits that the alliance has brought to connectivity, tourism, and consumers in Mexico," Aeromexico said in a statement. "This measure does not affect our customers. The codeshare agreements between Aeromexico and Delta remain in effect and will continue to do so, ensuring that passengers will continue to enjoy the connectivity network of both airlines."
In addition, Aeromexico said that the reciprocity of the carriers' loyalty programs remains unchanged as well.
Delta added that all flights will continue to operate as normal, unless otherwise contacted by Delta.
Delta also "will be able to retain its equity stake in Aeromexico, and both carriers can maintain all of its existing flying in the U.S.-Mexico market unimpeded," according to DOT.