U.S. Government Takes Action Against Mexico Over Airline Slot Disputes

On July 19, 2025, the U.S. Department of Transportation (USDOT) announced significant measures against the Mexican government in response to a series of regulatory decisions impacting U.S. airline operations. Specifically, the USDOT's actions stem from Mexico's 2023 decision to rescind flight slots allocated to U.S. carriers and to mandate that U.S. cargo airlines relocate their operations to Mexico City’s Benito Juarez International Airport (MEX). This move has sparked a contentious debate over airline competition and regulatory compliance between the two nations.

According to Sean Duffy, U.S. Transportation Secretary, the department is prepared to disapprove flight requests from Mexico if the government does not adequately address U.S. concerns regarding compliance with the bilateral air transport agreement established in 2022. "By restricting slots and mandating that all-cargo operations move out of MEX, Mexico has broken its promise, disrupted the market, and left American businesses holding the bag for millions in increased costs," Duffy stated in a press release issued on the same day.

The USDOT’s proposed actions also include withdrawing antitrust immunity from the joint venture between Delta Air Lines and Aeromexico, a decision that could have far-reaching implications for consumers and the airline industry at large. Delta Air Lines has warned that such a withdrawal would significantly harm travelers between the U.S. and Mexico, as well as U.S. jobs and transborder competition. "If the U.S. Department of Transportation withdraws approval, it would cause significant harm to consumers traveling between the U.S. and Mexico," emphasized a spokesperson from Delta Air Lines.

The ongoing dispute arises from the broader context of U.S.-Mexico air transport relations. Since 2022, Mexico has faced accusations of non-compliance with the bilateral aviation agreement, particularly following its abrupt rescission of flight slots and operational mandates that have impacted U.S. cargo carriers. The potential withdrawal of antitrust protections could force Delta and Aeromexico to discontinue their current cooperative practices in pricing and capacity management, although Delta would maintain its equity stake in Aeromexico.

Moreover, the USDOT has taken a proactive stance, issuing orders that require Mexican airlines to file their operational schedules with the department by July 29, 2025, and to secure prior U.S. approval for operating large passenger or cargo aircraft charters to and from the United States. "Mexico's actions harm airlines seeking to enter the market, existing competitor airlines, consumers of air travel, and products relying on time-sensitive air cargo shipments traded between the two countries," the department stated.

In addition to its actions against Mexico, the USDOT is closely monitoring European countries for compliance with airport noise abatement procedures and operational restrictions, suggesting a broader strategy to ensure fair competition within the aviation sector.

As the situation develops, the implications for U.S.-Mexico relations and the airline industry could be profound, with potential impacts on economic connectivity and consumer choice. The ongoing negotiations and regulatory adjustments will likely shape the landscape of international air travel in North America for years to come, highlighting the intricate balance of competition, regulation, and international relations in the aviation sector.