Aeroméxico's U.S. IPO Gambit Hangs in Balance as Legal Challenge Threatens Key Delta Alliance

Aeroméxico's Pursuit of U.S. Listing and Legal Challenges to Joint Venture Highlight Strategic Shifts in Latin American Aviation. Grupo Aeroméxico, Mexico's flagship carrier, has taken a major step toward re-entering public markets by filing for an initial public offering (IPO) on the New York Stock Exchange under the ticker symbol AERO. The filing, disclosed in September 2025, signals the airline's intent to capitalize on U.S. capital and liquidity while strengthening its position as the sole full-service carrier in Mexico offering long-haul, wide-body flights, as outlined in Capital.com's IPO guide. The IPO is expected to be led by underwriters including Barclays, Morgan Stanley, and JPMorgan, though details on pricing and share volume remain unannounced.

The decision to list in New York reflects Aeroméxico's strategic alignment with global markets and its partnership with Delta Air Lines, a U.S.-based carrier that holds a 20% stake in the airline. By accessing dollar-denominated capital, Aeroméxico aims to fund fleet modernization and expand its international network, which spans over 50 destinations across four continents, a point discussed in Capital.com's IPO guide. The move also aligns with broader trends among Latin American airlines, such as Copa Holdings and LATAM Airlines, which have sought U.S. listings to attract international investors.

Financially, Aeroméxico has shown resilience in 2024, reporting $4.185 billion in revenue and $542 million in net income for the first nine months of the year. Passenger services account for 91% of its revenue, supported by a premium service model and a modern fleet of Boeing 737 MAX and 787-9 aircraft, according to reporting on the IPO. However, the airline faces competitive pressures from low-cost carriers like Volaris and Viva Aerobus, which dominate 70% of Mexico's domestic market. Aeroméxico's strength lies in its international connectivity and SkyTeam alliance, which includes partners such as Air France-KLM and Korean Air.

Legal challenges, however, threaten to disrupt its growth strategy. U.S. regulators have ordered Aeroméxico and Delta to dissolve their joint venture by January 2026, citing anticompetitive effects in U.S.-Mexico City routes, according to a Seeking Alpha report. The airlines have appealed the decision, arguing that the joint venture provides critical revenue stability and network synergies. Delta has criticized the U.S. Department of Transportation's reasoning as "arbitrary and capricious," while Aeroméxico warned of substantial financial and operational costs if the partnership is terminated. The outcome of the appeal could reshape U.S.-Mexico air travel dynamics and impact Aeroméxico's ability to maintain profitability post-IPO.

The IPO also raises questions about investor sentiment in the volatile aviation sector. While U.S. airline stocks have shown signs of recovery in 2025, macroeconomic risks such as fuel price volatility and capacity constraints at Mexico City's airports remain concerns, as noted in Capital.com's IPO guide. Aeroméxico's management has indicated that post-IPO proceeds will prioritize debt reduction and fleet investments, with dividend payouts contingent on achieving net leverage below 2× EBITDA.

As the airline navigates regulatory hurdles and market competition, its U.S. listing represents both an opportunity to secure growth capital and a test of its ability to adapt to evolving industry conditions. The outcome of its IPO and legal battles will likely influence investor confidence in Latin American aviation and set precedents for future cross-border airline partnerships.