In September, the Trump administration issued an order to end the partnership that allows them to coordinate flight schedules and prices on U.S.-Mexico routes by Jan. 1.
- The carriers believe that the extension would allow the court sufficient time to conduct a thorough review and issue an order.
- In an earlier filing, Delta, which holds a 20% stake in Aeromexico, had warned that the partnership sustains nearly 4,000 U.S. jobs and adds more than $310 million to the U.S. economy.
- The U.S. previously called the JV a “legalized collusion” that controls “almost 60% of operations at the fourth-largest international gateway to and from the United States,” referring to Mexico City flights.
Delta Air Lines and Aeromexico got a reprieve from a U.S. appeals court after it granted a stay order on a Department of Transportation directive that had asked the airlines to scrap their joint venture.
In September, the Trump administration issued an order to end the partnership that allows them to coordinate flight schedules and prices on U.S.-Mexico routes. The two airlines had requested a waiver from the Department of Transportation’s Jan. 1, 2026, deadline to dissolve their joint venture. The carriers believe that the extension would allow the court sufficient time to conduct a thorough review and issue an order.
What’s At Stake?
In an earlier filing, Delta, which holds a 20% stake in Aeromexico, had warned that the partnership sustains nearly 4,000 U.S. jobs and adds more than $310 million to the U.S. economy. It had also cautioned that an end to the joint venture could result in the loss of $800 million in annual consumer benefits and the cancellation of two dozen routes. In 2024, the Biden administration also considered scrapping the joint venture, which has been in operation since 2016.
The government said the airlines’ claims “of irreparable injury are overblown and the public interest favors restoring full and fair competition between Delta and Aeromexico themselves and among them and their competitors.”
The U.S. also called the JV a “legalized collusion” that controls “almost 60% of operations at the fourth-largest international gateway to and from the United States,” referring to Mexico City flights.
What Are Stocktwits Users Thinking?
Retail sentiment on Stocktwits about Delta was in the ‘neutral’ territory, compared with ‘bearish’ a day ago.
Delta stock has gained marginally this year, and it has slipped 4.4% over the last 12 months. Earlier in the day, Delta CEO Ed Bastian warned that the U.S. government-mandated flight cuts would result in “significant” costs.
During an interview with CNBC, Bastian said the airline still expects normalcy to resume, provided the ongoing government shutdown ends this week.
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