U.S. Lifts Expansion Freeze on Mexican Airlines

Regulatory Shift in U.S.-Mexico Aviation

The United States Department of Transportation (DOT) has officially lifted the restrictions imposed on Mexican airlines, effective October 16, 2026. This regulatory action, formalized under DOT Order 2026-10-8, revokes the expansion freeze that had been in place since October 2025. The original order, DOT Order 2025-10-13, had effectively blocked Mexican carriers from adding new passenger or cargo services to the U.S. in response to concerns regarding Mexico's compliance with the 2015 U.S.-Mexico Air Transport Agreement.

Resolution of the Dispute

The dispute centered on the Mexican government’s management of airport slots at Aeropuerto Internacional de la Ciudad de México (AICM) and its mandates requiring cargo carriers to relocate operations to the secondary Aeropuerto Internacional Felipe Ángeles (AIFA). The U.S. government argued these actions violated the bilateral treaty, which guarantees fair and equal opportunity for carriers of both nations. Following negotiations between the U.S. DOT and Mexico's Secretariat of Infrastructure, Communications and Transportation (SICT), a Memorandum of Consultations was signed in May 2026, setting the stage for the recent compliance steps.

In announcing the revocation, the U.S. DOT indicated that the measures taken by the Mexican government were sufficient to resolve the underlying concerns. According to Daniel J. Edwards, Assistant Secretary for Aviation and International Affairs at the U.S. DOT, "The steps Mexico has taken sufficiently address the concerns behind the freeze."

Impact on Carriers and Market Dynamics

The lifting of the freeze has immediate implications for major Mexican carriers, including Aeromexico, Volaris, and Viva Aerobus. Industry data indicates that 13 existing or planned U.S. routes had been held in limbo by the October 2025 order. These airlines are now permitted to resume planning and filing for new routes and frequencies from both AICM and AIFA. While this change allows Mexican carriers to pursue growth in the transborder market, U.S. airlines will face renewed competition on these routes after a year of operating under constrained market conditions for their Mexican counterparts.

This development follows a period of regulatory friction, reminiscent of the 2021 period when the Federal Aviation Administration (FAA) downgraded Mexico’s aviation safety rating to Category 2. That earlier action also halted U.S. expansion for Mexican carriers until the rating was restored in September 2023. Stakeholders expect to see an increase in international passenger volume and new route announcements as carriers look to utilize their capacity throughout the remainder of 2026 and into 2027.