Delta Air Lines Inc. (NYSE:DAL) and Grupo Aeromexico requested a five-month extension to wind down their controversial joint venture as federal regulators move to revoke antitrust immunity for the partnership.
Airlines Request March 2026 Deadline
The carriers filed a joint request on Tuesday asking authorities to extend the termination deadline to March 28, 2026. This represents a significant delay from the current October 25 deadline set by U.S. regulators, Reuters reported.
The airlines justified the extension request by aligning it with the aviation industry’s “winter season” scheduling cycle, which typically runs through late March.
DOJ Backs Revoking Antitrust Immunity
The U.S. Department of Justice has endorsed a Department of Transportation proposal to terminate the airlines’ antitrust immunity. The joint venture currently allows Delta and Aeromexico to coordinate pricing, scheduling, and operational decisions on U.S.-Mexico routes.
“Competition is particularly valuable in the airline industry. It drives lower prices, better quality, and more of the services consumers want,” the DOJ stated in regulatory filings, according to Reuters reports.
Federal regulators argue the alliance may be stifling market competition on transborder routes between the United States and Mexico.
Regulatory Scrutiny Intensifies
The antitrust challenge comes amid broader regulatory scrutiny of Delta’s business practices. The Atlanta-based carrier recently agreed to pay $8.1 million to settle Justice Department allegations of misusing federal COVID-19 pandemic relief funds.
Additionally, Delta faces congressional criticism over plans to implement AI-powered personalized pricing for up to 20% of its fares, with lawmakers warning about potential consumer exploitation and privacy concerns.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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