Delta Air Lines and Aeromexico can continue operating their joint venture after a US appeals court overturned a government order that had sought to terminate the partnership.
The 11th US Circuit Court of Appeals ruled against the US Department of Transportation’s (DOT) decision to revoke approval for the joint venture, allowing the two airlines to maintain their existing cooperation.
The ruling follows a prolonged legal dispute over the US–Mexico Air Transport Agreement and the Mexican government’s aviation policies.
In September 2025, the DOT ordered Delta and Aeromexico to terminate their joint venture by 1 January 2026, arguing that Mexico had failed to comply with provisions of the 2015 US–Mexico Air Transport Agreement.
The US government had argued that actions by Mexican authorities had disadvantaged US airlines and created an uneven competitive environment for carriers operating between the two countries.
The DOT had also imposed restrictions on certain Mexican passenger and cargo operations in July 2025, citing what it described as Mexico’s “abuse” of the bilateral agreement. The department subsequently said Mexico had failed to take meaningful corrective action.
At the centre of the dispute was Mexico’s decision to move cargo operations from Benito Juárez International Airport in Mexico City to Felipe Ángeles International Airport (AIFA).
The US government argued that the transfer of cargo operations from Mexico City International Airport (MEX) to AIFA was inconsistent with the terms of the bilateral air services agreement and had adversely affected US carriers.
Despite the government’s position, the appeals court’s decision means Delta and Aeromexico can retain their joint venture approval.
The partnership, established in its current form in 2017, enables the airlines to coordinate schedules, routes and other commercial activities across their networks. It has allowed the carriers to offer customers broader connectivity between the US and Mexico.
Following the court ruling, Delta welcomed the decision.
“For nearly a decade, Delta’s joint cooperation agreement with Aeromexico has provided greater choice, more seamless travel, and increased connectivity for consumers while supporting U.S. jobs and economic growth,” the airline said.
“We appreciate the 11th Circuit’s careful review and remain focused on ensuring our customers, employees, and communities continue to benefit from this longstanding partnership.”
The ruling removes a significant regulatory uncertainty for both airlines, which have continued to develop their networks between the US and Mexico despite the dispute.
The case also has implications for the wider aviation market, given the importance of the US–Mexico corridor to both passenger and cargo operators.
Mexico is a major manufacturing and trade partner for the US, generating substantial flows of automotive components, electronics, industrial products, perishables and other goods that move by air as well as surface transport.
The dispute over airport operations has therefore extended beyond passenger aviation to the cargo sector. The US government’s restrictions in 2025 included measures affecting Mexican cargo operations and were part of a broader response to the disagreement over implementation of the bilateral agreement.
For Delta and Aeromexico, however, the appeals court ruling provides continuity for their joint commercial operation and removes the immediate requirement to dismantle the partnership.
The two carriers can now continue coordinating their transborder networks while the broader disagreement between the US and Mexico over aviation policy remains unresolved.
