Washington Cracks Down On Mexico’s Aviation Practices, Targets Joint Venture With Aeroméxico, Here’s Everything You Need To Know Now

Published on July 19, 2025

The US Department of Transportation (DOT) has turned a bilateral aviation dispute into a regulatory showdown, attacking Mexico for failing to ensure that competition is fair and for breaking several conditions of an air transport agreement that goes back to the 1960s. At the heart of the impasse is a targeted strike against the joint venture between the Delta Air Lines and Aeroméxico and new limits on Mexican airline operations in the United States.

Air Travel To Mexico In Jeopardy

Mexico has been the No. 1 foreign destination for U.S. travelers for decades, with millions of Americans flying south each year for business, leisure and cargo. But recent actions by the Mexican government have jeopardized that open access.

In 2022, Mexico abruptly pulled some of the most important flight slots from Benito Juárez International Airport (MEX) in Mexico City that U.S. carriers including American Airlines, Delta, and FedEx used to keep business running as usual. The turmoil intensified in 2023, when Mexico required U.S. air cargo carriers to move operations from the MEX airport to more distant facilities, disrupting time-sensitive deliveries and imposing higher costs on businesses on both sides of the border.

Mexico’s action is a “violation of the bilateral agreement” that has “distorted market access, reduced competition, and increased costs to American carriers,” DOT Secretary Sean Duffy said in a statement.

Regulatory Muscle On Display

In turn, Washington has responded with a sweeping regulatory offensive.

The DOT also released a show-cause order proposing to end the antitrust immunity that shields the joint venture between Delta and Aeroméxico. If completed, it would block the two airlines from coordinating on the pricing, scheduling and sharing of revenue.

Mexican airlines must submit all schedules for operations to the United States and receive prior approval before carrying out any large charter operations transporting passengers or cargo. The conditions are meant to provide the DOT leverage and supervision over Mexican operations within U.S. airspace.

If Mexico does not solve the underlying compliance issues, the U.S. would be able to begin denying future flight approvals for Mexican airlines, further crimping cross-border supply.

The measures, outlined in DOT’s official filings, represent a major escalation in enforcement. “Mexico has broken its commitment, disrupted the market and cost American businesses tens of millions of dollars in higher costs — with no end in sight,” D.O.T.

Broader Trade And Policy Implications

The aviation squabble may seem narrowly drawn, but it reflects a wider context of diplomatic and economic disagreement.

pursuant to the USMCA, market access for transportation services must continue to be both fair and reciprocal. The movement of freight — especially just-in-time shipments of produce, electronics and pharmaceuticals — has been hammered by airport relocations and delivery delays.

DOT’s crackdown is also seen as a message to other international partners: that the U.S. intends to use aviation regulation not just to shelter its own industry, but to uphold treaty promises with operational consequences.

Airlines, Travelers And Stakeholders React

American Airlines, Delta and UPS have all called attention to the operational problems, stating that Mexican slot management and airport access policies are now biased toward local incumbents.

Aeroméxico and Volaris are likely to have growth curtailed in the U.S. market under the new review system. Tourism operators and regular travelers might face fewer options and higher fares — at least at certain times of the year. And consumer advocate groups warn that diminished airline competition on major U.S.–Mexico routes may hurt passengers and increase prices.

Looking Ahead: Will Mexico Comply?

There is one core issue that is still unresolved: Mexico had previously committed to building new runway and terminal capacity at Mexico City International Airport to help reduce congestion. Now, three years later, those infrastructure projects have gone nowhere — solidifying DOT’s lack of faith in Mexico’s motives.

Unless swift action to return to fair access to slots and end unjustified cargo reroutings is taken by Mexico, the United States is prepared to implement additional operational restrictions and promote compliance through economic measures.

Conclusion

This is not only a battle between aviation regulators. This is a test of economic reciprocity, international cooperation and regulatory resolve. Setting aside politics, Washington’s tough stance, based on legal authority and operational control, demonstrates that the U.S. will take strong measures when foreign allies breach aviation treaties.

With the fate of the Delta–Aeroméxico joint venture between the United States and Mexico in the balance, the future of air travel between the two nations is at a crucial turning point. Consumers and carriers, as well as those arriving passengers, are watching intently to see whether the skies will clear — or cloud up even more.