Court Stay Pauses Delta Aeromexico JV Breakup

Published on Nov 14, 2025, 4:03 pm CST

7 min read

Key points

US appeals court grants a stay that keeps the Delta Aeromexico joint venture intact past January 1, 2026
DOTs final order ending antitrust immunity is frozen while the Eleventh Circuit reviews whether regulators overreached
Travelers can keep booking familiar US Mexico schedules and earning miles as usual but should plan backup options for later trips
The dispute is tied to broader US Mexico tensions over Mexico City airport access and alleged advantages for domestic carriers

Impact

Booking Strategy: You can book near term Delta and Aeromexico itineraries as normal, but for late 2026 trips favor flexible fares and avoid hard to change add ons in case schedules shift later.
Frequent Flyer Miles: SkyMiles and Aeromexico Rewards earning and redemptions on joint venture routes continue under current rules for now, although charts and benefits could change if the partnership is eventually unwound.
Route Exposure: Travelers who rely on Mexico City International Airport and other joint venture hubs should watch for schedule changes if the court later upholds the DOT order.
Fare Expectations: As long as antitrust immunity remains in place, coordinated pricing and capacity on core US Mexico flows continue, so any competitive shakeup is more likely if the stay is lifted.
Advisor Guidance: Travel advisors should flag the legal uncertainty for clients, keep PNRs clean with single ticket itineraries, and monitor trade updates as the Eleventh Circuit case progresses.

A U.S. appeals court has thrown Delta Air Lines and Aeromexico a lifeline by temporarily blocking a U.S. Department of Transportation order that would have forced them to unwind their joint venture by January 1, 2026. The decision means antitrust immunity and deep coordination on U.S. Mexico flights stay in place for now, so travelers can keep booking familiar schedules and earning miles under the current setup while the legal fight plays out.

The stay buys time, not certainty, because the court has not ruled on whether DOT overreached in targeting a partnership that controls a large share of Mexico City traffic. If judges ultimately side with regulators, the joint venture could still be dismantled on a later timetable.

Delta Aeromexico joint venture at a glance

Delta and Aeromexico launched their immunized joint cooperation agreement in 2016, after regulators in both countries granted antitrust immunity that lets the carriers coordinate schedules, pricing, and capacity between the United States and Mexico and share revenue on covered routes.

In practical terms, this means the partnership has been operating more like a single transborder carrier. The airlines divide markets between them, schedule flights to reduce overlap, and align fares and inventory, rather than competing independently on each city pair. Delta built a 20 percent equity stake in Aeromexico around that framework, and the partnership now touches tens of thousands of flights per year, including a dominant share of operations at Mexico City International Airport (MEX).

DOT concluded in 2025 that the competitive environment had shifted enough to justify pulling that immunity. Regulators argued that Mexico's government had constrained U.S. carriers by revoking some Mexico City slots, moving cargo operations to Felipe Angeles International Airport (NLU), and managing access in ways that allegedly favored Aeromexico, which distorted the level playing field assumed when the joint venture was approved.

Latest developments

On September 15, 2025, DOT issued a final order terminating antitrust immunity and withdrawing its approval of the joint cooperation agreement, with the breakup scheduled to take effect on January 1, 2026. The department framed the decision as a response to "ongoing anticompetitive effects" in U.S. Mexico City markets and said the alliance had become "legalized collusion" that controlled almost 60 percent of operations at one of the largest international gateways to and from the United States.

Delta and Aeromexico quickly petitioned the U.S. Court of Appeals for the Eleventh Circuit to review the order and asked for a stay, arguing that dismantling the joint venture on DOT's timeline would cause irreversible harm even if they eventually won on the merits. The Justice Department supported DOT's bid to revoke immunity, saying the alliance risked higher fares and reduced competition on key routes.

On November 12, 2025, a three judge Eleventh Circuit panel granted the requested stay, formally pausing the effectiveness of the DOT order while judicial review proceeds. In a brief statement, Aeromexico told investors that the decision means the joint venture "remains in force" pending the outcome of the case, a message that Delta echoed in its own comments.

For travelers, that translates into continuity. Coordinated schedules and fares remain, reciprocal mileage earning and elite recognition continue as before, and no forced retimes or partner reshuffles are required for winter 2025 to 2026 schedules. The legal cloud sits in the background, but it does not trigger an immediate disruption.

If you want a deeper dive into the original DOT action and its reasoning, see Adept Traveler's earlier coverage in DOT Ends Delta Aeromexico Joint Venture Jan 1 on our news site.

Analysis

For now, the stay keeps the status quo on U.S. Mexico routes covered by the joint venture. Delta and Aeromexico can continue to act as a single commercial entity for scheduling and pricing, which usually means consistent wave structures at their hubs, smooth connections through Mexico City, and aligned fare buckets across both carriers.

From a traveler's perspective, that delivers three immediate benefits. First, you avoid the near term timetable churn that a forced January breakup would have created, including split waves, awkward connection windows, and potential loss of some thinner routes that rely on joint venture revenue sharing. Second, existing tickets do not need to be rebooked solely because of the DOT order. Third, loyalty strategies built around SkyTeam access via Mexico City remain valid in the short run, so there is no urgent need to rebuild status plans or shift alliance loyalties.

The stay does not guarantee that the joint venture survives. At a high level, the court is only answering a narrow question right now, whether Delta and Aeromexico have shown enough likelihood of success and potential irreparable harm to justify pausing the order. The panel will still need to weigh the full record of DOT's competition findings and the airlines' counterarguments about connectivity, tourism, and trade.

Background, how antitrust immunity works

Antitrust immunity allows airlines in different countries to coordinate on pricing, capacity, and schedules without violating normal competition laws, usually in exchange for commitments that they will not reduce competition overall. Regulators look at route overlaps, available rivals, and consumer benefits like new city pairs and shorter connections, then periodically review whether those conditions still hold.

In this case, DOT and the Justice Department concluded that changes in Mexico's aviation policy and slot management had tilted the field in favor of Aeromexico and its U.S. partner, so the original balance no longer applied. Delta and Aeromexico counter that the joint venture is pro competitive, pointing to added seats and city pairs compared to pre alliance schedules, and they argue that they are being held to a tougher standard than other immunized alliances such as United with ANA.

Booking strategies while the case is pending

If you are planning travel between the United States and Mexico in the next six to nine months, you can treat Delta and Aeromexico's schedule as stable for now, with the normal caveats about seasonal adjustments and operational disruptions. Joint venture metal neutral routes such as Atlanta to Mexico City, New York to Mexico City, and key leisure markets should continue to operate under the existing network design while the stay is in effect.

That said, it is smart to build some resilience into your plans.

For trips deep into 2026, when the court may have ruled and DOT could try to reimpose its order, consider these tactics.

Book on a single ticket rather than stitching together separate tickets on Delta and Aeromexico, which gives you better protection if schedules change. Favor fares that allow reasonable changes or refunds, particularly for complex itineraries through Mexico City International Airport and other hubs where joint venture coordination matters most. Be cautious about nonrefundable add ons such as separately booked low cost domestic connections or prepaid hotels that would be hard to move if your transborder leg shifts.

Advisors and corporate travel managers should track the case timeline. If the Eleventh Circuit upholds DOT's order, there will almost certainly be a new implementation window and transition plan, rather than an overnight shutoff, but it could still reshape capacity and partner options in some city pairs. At that point, revisiting airline preference policies, alliance mix, and corporate contracts for U.S. Mexico travel would be prudent.

Final thoughts

The court ordered pause on the DOT decision gives the Delta Aeromexico joint venture a temporary reprieve and gives travelers breathing room. For now, the alliance operates as usual, with familiar schedules, coordinated fares, and full mileage earning, while judges decide whether regulators pushed too far in trying to unwind an almost decade long partnership.

The underlying policy questions, how to balance competition against connectivity and how to respond to shifting airport access in Mexico, remain unresolved. Until the Eleventh Circuit issues a final ruling, the best approach for travelers and advisors is to use the joint venture where it makes sense, but protect longer horizon trips with flexibility and a clear backup plan in case the legal winds shift.