Court overturns order to unwind Delta-Aeromexico joint venture

A federal appeals court has overturned a September 2025 order from the US Department of Transportation that had directed Delta Air Lines and Aeromexico to end their joint venture, according to the report.

The DOT's order had sought to block a partnership between the two carriers that had been in place for roughly a decade. Delta and Aeromexico sued shortly after the order was issued, challenging the department's authority to unwind the arrangement.

The US Court of Appeals ruled in favor of the airlines this week, setting aside the government's move. That lets the joint venture, which had allowed the two carriers to coordinate on pricing, scheduling and shared routes between the United States and Mexico, keep operating as before.

The available account did not fully lay out the court's reasoning. Still, the ruling is a setback for the administration's efforts to alter the competitive structure of transborder air travel between the two countries. Whether the government will seek further appeal is not yet clear.

The joint venture has been a significant feature of the US-Mexico aviation market, letting Delta and Aeromexico operate as close partners despite being separate, competing airlines under normal circumstances. Regulators had previously raised concern that such close cooperation could reduce competition on certain routes, a concern that reportedly formed part of the original basis for the September order.

Neither airline's response to the ruling was detailed in the available material. How the decision affects ongoing route planning or pricing coordination between the two carriers in the near term remains to be seen.