US threatens to upend Delta-Aeromexico deal in Mexico orders

Michael O'Boyle, Bloomberg News on Jul 19, 2025

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The Trump administration is threatening to revoke antitrust immunity for Delta Air Lines Inc. and Grupo Aeromexico’s pricing agreement amid a set of new orders demanding Mexico move forward to address anticompetitive behavior.

Mexican airlines will now be required to file schedules with U.S. authorities and seek approval for large charter flights, according to an order issued by U.S. Transportation Secretary Sean Duffy on Saturday. An additional show cause order proposes withdrawing antitrust immunity for the Delta-Aeromexico joint venture, since it no longer “serves the public interest.”

“Let these actions serve as a warning to any country who thinks it can take advantage of the US,” Duffy said in the statement, adding that the department was also reviewing European agreements. Delta and Aeromexico could still maintain their partnership through arms-length activities, the statement said.

Delta said in a statement that it would work with the Trump administration to resolve concerns. The airline warned that an end to its partnership with Aeromexico “would cause significant harm to consumers traveling between the US and Mexico, as well as US jobs, communities, and transborder competition.”

The order is the latest wrinkle in the Mexico-US relationship, following last month’s U.S. Treasury order blocking transfers with three Mexican companies accused of potentially facilitating fentanyl traffickers and President Donald Trump’s threat last Saturday to impose 30% tariffs for failing to do enough to fight drug cartels.

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

(Sam Kim contributed to this report.)