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Appeals Court Pauses DOT Breakup of DeltaAeroméxico Alliance

The pause preserves the alliance pending judicial review of DOT’s bid to withdraw antitrust immunity over Mexico City access disputes.

Overview

  • The U.S. Court of Appeals for the Eleventh Circuit granted a temporary stay under the Nken v. Holder standard without addressing the case’s merits.
  • The stay freezes the September 15 DOT order and the January 1, 2026 unwind deadline, allowing joint scheduling and pricing to continue for now.
  • DOT moved to let the 2016 antitrust-immunity grant lapse, citing market distortions and Open Skies concerns tied to Mexico City slot limits and cargo relocations, and it recently blocked 13 U.S.–Mexico routes.
  • Delta and Aeroméxico argue DOT exceeded its authority and say dismantling their integrated partnership, including Delta’s 20% stake, would cause irreparable harm, while DOT says ending immunity would enhance competition.
  • Analysts expect an appellate decision around August–September 2026 based on Eleventh Circuit timing, leaving the joint venture in place during the review.