US Regulatory Blow and Mixed Outlook Challenge Delta Air Lines

Delta Air Lines faces a dual challenge as US transportation authorities delivered a significant regulatory setback while the carrier issued a mixed financial forecast, creating headwinds for the aviation giant.

The US Department of Transportation (DOT) issued a Wednesday directive requiring the immediate termination of antitrust immunity for Delta’s joint venture partnership with Mexico’s Aeroméxico. This arrangement, established in 2016, had permitted both airlines to coordinate flight schedules, pricing strategies, and joint marketing efforts for routes connecting the United States and Mexico. Regulatory authorities cited “ongoing competitive harm” resulting from Mexican slot restrictions at Mexico City Airport that allegedly created unfair competitive advantages.

Both carriers expressed disappointment with the ruling, warning of potential negative consequences including... Read more...