The company, founded in 1921, had suspended its operations in August 2010 and was under a form of bankruptcy protection allowing the company to negotiate with creditors and make restructuring plans.
Investors expressed interest in the company but a financial rescue never materialized despite extensions given by the court to provide the company more time to find a solution.
A district judge on Friday declared the company "in a state of bankruptcy" and ordered the sale of "rights and assets" to pay back lenders, the Federal Judicial Council said in a statement.
Two subsidiaries, Click and Link, were also declared bankrupt.
When it suspended operations, Mexicana had $US786 million ($A854 million) in assets and debts totalling $US864 million.
The airline used to fly to 22 countries, carrying 22,000 passengers per day.
