Court overturns DOT order ending Delta-Aeromexico joint venture

The US Court of Appeals for the 11th Circuit has ruled in favour of Delta Air Lines and Aeromexico in their challenge to a Department of Transportation order that sought to end their joint venture agreement. The court issued its decision on 20 August, vacating the DOT's 2025 order.

In its ruling, the court found that the DOT had not adequately justified its approach. Judges noted the agency conducted a narrower market analysis than in prior cases and imposed conditions on the Delta-Aeromexico arrangement that it had not required for comparable joint ventures involving carriers operating in Japan. The court described the DOT's reasoning as arbitrary and capricious.

Delta said the joint cooperation agreement, in place for nearly a decade, has expanded consumer choice and connectivity while supporting jobs and economic activity in the United States. The airline said it appreciated the court's thorough review and intends to keep serving customers under the partnership.

Aeromexico said the ruling allows both carriers to continue offering expanded route networks and service options between Mexico and the United States, along with what it described as increased competition. The airline said it is reviewing the court's opinion together with Delta and legal advisers to determine next steps, and would update the market on any material developments.

The joint venture was first approved by regulators in 2016, at which point the two airlines were required to give up two dozen slots at Mexico City International airport. The DOT had declined last year to renew antitrust immunity for the arrangement, prompting the legal challenge that led to this week's appellate decision.