U.S. Transportation Secretary Sean Duffy is following via on his risk to power Delta and Aeromexico to dissolve their longtime partnership due to his issues that Mexico isn’t being truthful to U.S. airways.
Duffy introduced Tuesday that the Transportation Division is revoking the antitrust immunity the airways have had since 2016 that allowed them to cost and schedule their flights collectively and share income. He mentioned it doesn’t make sense to take care of that association so long as Mexico is giving its home airways an unfair benefit via limits it positioned on passenger and cargo flights into Mexico Metropolis a number of years in the past.
This airline dispute is one other entrance within the broader commerce dispute that has the 2 international locations at odds over President Donald Trump’s tariffs and his issues about border safety. Duffy is targeted on whether or not Mexico’s actions to power airways to maneuver out of the primary Benito Juarez Worldwide Airport to the newer Felipe Angeles Worldwide Airport greater than 30 miles (48.28 kilometers) away violated a commerce settlement between the 2 international locations and gave home airways the benefit.
Earlier than Mexico compelled cargo airways to start out utilizing Felipe Angeles in 2022, all the most important worldwide airways had shunned the airport that’s so removed from the middle of Mexico Metropolis that’s can take 2 1/2 hours to drive to the terminal. On the similar time, Mexico additionally minimize among the slots accessible at Benito Juarez to permit for development on the airport that Duffy says nonetheless hasn’t occurred.
“Empty promises mean nothing. After years of taking advantage of the U.S. and our carriers, we need to see definitive action by Mexico that levels the playing field and restores fairness,” Duffy mentioned.
Again when Duffy introduced this risk in July, Mexican President Claudia Sheinbaum mentioned that the switch of cargo operations from Mexico Metropolis’s foremost airport to the brand new one was a technical determination and that any new change needs to be based mostly on technical standards and prioritizing security.
“There is no reason to impose any sanctions related to this matter,” she mentioned. In response to her, Mexico’s determination was not a choice in opposition to any U.S. airways, however because of the want to alleviate congestion on the capital’s previous airport, Benito Juárez.
She acknowledged that some U.S. corporations complained when the change occurred, however she mentioned that they tailored to the brand new scenario.
The 2 airways mentioned they’re disillusioned in Duffy’s determination, however they haven’t but determined whether or not to problem it. Delta and Aeromexico have argued in regulatory filings that they shouldn’t be punished for the actions of the Mexican authorities and shoppers and the economies of each international locations will likely be damage by this.
Airways react
Mexico is the highest international vacation spot for People with greater than 40 million passengers flying there final 12 months. Delta and Aeromexico operated greater than 30,000 flights between america and Mexico final 12 months, in accordance with the aviation analytics agency Cirium.
Delta mentioned this determination “will cause significant harm to U.S. jobs, communities and consumers traveling between the U.S. and Mexico.” Aeromexico mentioned this “overlooks the benefits that the alliance has brought to connectivity, tourism, and consumers in Mexico.”
The 2 airways will proceed to cooperate however received’t be capable of work collectively as carefully. They mentioned in regulatory filings that they imagine the lack of direct flights would immediate over 140,000 American vacationers and practically 90,000 Mexican vacationers to not go to the opposite nation and damage the economies of each international locations with the lack of their spending.
Delta and Aeromexico mentioned their alliance hasn’t stored different airways from competing at the same time as they grew their enterprise. Competing airways Viva and Volaris each expanded their operations at Benito Juarez airport after Interjet went out of enterprise throughout the pandemic, though Aeromexico additionally grabbed half that airline’s slots and expanded in Mexico Metropolis.
Duffy’s order would take impact in January. Till then, there received’t be any modifications to flights or loyalty packages on the airways.
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