US President Donald Trump's administration said on Saturday it will take action against Mexico after the Mexican government cut flight slots and forced cargo carriers to relocate operations in Mexico City, affecting US airlines.
US transportation secretary Sean Duffy said the department could disapprove flight requests from Mexico if the government fails to address US concerns over decisions made in 2022 and 2023. The department is also proposing to withdraw antitrust immunity from Delta Air Lines' joint venture with Aeromexico to address competitive issues.
Mexico is the most popular international destination for US airline travellers.
Delta said if the department withdraws approval it would cause significant harm to consumers travelling between the US and Mexico and US jobs, communities, and transborder competition.
Aeromexico said it was preparing a joint response to the order, which it plans to issue in the coming days.