The U.S. government has imposed new restrictions on Mexican airlines and threatened to cancel the Delta-Aeromexico partnership over Mexico’s policy forcing flights to move from Mexico City’s main airport to a distant new one.

The U.S. Transportation Department restricted Mexican passenger, cargo, and charter flights and demanded schedule approvals. It also threatened to end the Delta-Aeromexico alliance in response to Mexico forcing airlines to shift operations from Benito Juarez International Airport to Felipe Angeles Airport, 50 kilometres away.

Transportation Secretary Sean Duffy said Mexico’s policy violates trade agreements and unfairly benefits domestic carriers. He criticized the Biden administration for allowing it and vowed to protect U.S. airlines and market fairness.

Mexico is the top foreign destination for U.S. travellers, with more than 40 million passengers last year. The airlines argue ending the Delta-Aeromexico partnership would harm consumers, disrupt routes, and risk $800 million in tourism benefits.

Delta and Aeromexico plan to challenge the decision, which would take effect in October. They warned flight losses could reduce tourism from both countries and hurt their economies.

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