US Slaps Mexico Over Airline Slot Rescission and Cargo Relocation

The Trump administration has taken steps against Mexico over the country’s decision to rescind flight slots for US carriers and force US cargo carriers to relocate their operations in Mexico City. The US Department of Transportation said it will disapprove flight requests from Mexico if the government fails to address concerns raised in 2022 and 2023.

The move comes after Mexico abruptly removed slots from US airlines in 2022, followed by a requirement for US all-cargo carriers to relocate their operations in 2023. The US DOT claims Mexico has not complied with a bilateral air agreement since then and is disrupting the market.

Delta Air Lines and Aeromexico, which operate under an antitrust exemption, are among those affected. The airline said that if the US Department of Transportation withdraws approval, it would cause significant harm to consumers traveling between the two countries as well as US jobs and communities.

The US DOT has also proposed withdrawing antitrust immunity from the Delta-Aeromexico joint venture due to competitive issues in the market. However, this could lead to Delta being required to discontinue cooperation on common pricing, capacity management, and revenue sharing with Aeromexico.

In a statement, US Transportation Secretary Sean Duffy said that Mexico’s actions are harming airlines seeking to enter the market, existing competitor airlines, consumers of air travel, and other stakeholders in the American economy.

Source: https://www.cnbc.com/2025/07/19/us-threatens-mexican-airline-flights-over-airline-competition-issues.html