One of four major airlines in the United States, Delta Air Lines (DAL) had a second-quarter operating profit of $2.1 billion, better than its U.S. competition.
While the carrier services more than 1,000 destinations in more than 60 countries on six continents, flying planes is not its biggest source of revenue.
It turns out that Delta’s real source of revenue is its loyalty program. According to The Economist, without the revenue from this program, Delta would have reported negative profits.
Delta is not the only airline that makes billions of dollars through its relationships with credit card issuers, as other major carriers report similar situations.
The 100-year-old airline experiences operational turbulence from time to time, such as canceled flights, changed routes, and more.
Just recently, the company revealed that one of its longest-standing flights — a nonstop flight between New York-JFK and Brussels in Belgium — would end permanently beginning in January.
In the most recent development, the Trump administration ordered Delta Air Lines to terminate a joint venture with Aeromexico.
Image source: Guay/AFP via Getty Images
Delta Air Lines loses its antitrust immunity
In July, the Trump administration imposed new restrictions on flights from Mexico and threatened to end a long partnership between Delta Air Lines and Aeromexico.
The goal was to respond to restrictions the Mexican government placed on passenger and cargo flights into Mexico City from several years ago, according to an Associated Press report.
Related: American Airlines, Delta Air Lines suspend pilots for conduct
On September 15, the Department of Transportation (DOT) issued an order, forcing the end of the partnership based on “ongoing anticompetitive effects in U.S.-Mexico City markets that provide an unfair advantage to Delta and Aeromexico.”
“These anticompetitive effects have broader implications beyond Mexico City, affecting competition for passengers and cargo operations in additional markets between the United States and Mexico,” reads the order.
The DOT’s order reveals that antitrust immunity for the Delta-Aeromexico alliance will be suspended effective January 1, 2026.
Mexico’s noncompliance with 2015 U.S.-Mexico Air Transport Agreement
Mexico has not worked toward resolving its noncompliance with the 2015 U.S.-Mexico Air Transport Agreement, which affects the market and offers an unfair advantage to Delta and Aeromexico, reads the official report from the US Department of Transportation.
According to the document, Mexico has not been in compliance with the bilateral agreement since 2022, when it forced the U.S. all-cargo carrier to relocate operations, claiming it was needed for construction to alleviate congestion at Benito Juarez International Airport (MEX).
In three years, things have not changed.
“Empty promises mean nothing. After years of taking advantage of the U.S. and our carriers, we need to see definitive action by Mexico that levels the playing field and restores fairness,” stated U.S. Transportation Secretary Sean P. Duffy. “Under President Trump’s leadership, we will continue to put America First and hold any country who thinks they can distort the rules accountable.”What the end of immunity for the Delta-Aeromexico alliance means for travelers
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What the end of immunity for the Delta-Aeromexico alliance means for travelers
Without antitrust immunity, Delta Air Lines can’t fully integrate operations with Aeromexico, which could result in reduced efficiency on shared routes, according to a report from Aviation A2Z.
With increased competition, travelers could face less coordinated flight times and possible changes in ticket prices.
Related: US airlines score major win over passengers in major rule change
Delta plans to review the decision while maintaining normal operations.
“We are disappointed that the Department of Transportation has chosen to terminate its approval of the strategic and pro-competitive partnership between Delta and Aeromexico, a decision that will cause significant harm to U.S. jobs, communities and consumers traveling between the U.S. and Mexico. We are reviewing the Department’s order and considering next steps,” Delta Air Lines stated.
Lost jobs, routes, and the negative impact on the economy
Previously, Delta Air Lines said the joint venture creates close to 4,000 U.S. jobs and more than $310 million of U.S. gross domestic product. Without it, more than $800 million in annual consumer benefits could be lost, and two dozen routes might be canceled, according to a report by Reuters.
Additionally, in regulatory filings, Delta Air Lines and Aeromexico said the loss of direct flights could cause more than 140,000 American travelers and nearly 90,000 Mexican passengers not to visit the other country, negatively affecting the economies of both, according to a report from the Associated Press.
While Aeromexico still has a strong presence at Benito Juarez International Airport, without the joint venture, it could lose competitiveness.
Americans account for a huge percentage of tourism in Mexico. In the first five months of 2025, Americans made up 63% (24.8 million) of all tourists in Mexico.
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Make a free appointment with TheStreet’s Travel Agent Partner, Postcard Travel, or email Amy Post at amypost@postcardtravelplanning.com or call or text her at 386-383-2472.
