The flag carrier Aerolíneas Argentinas has posted the best year financial result since its nationalization in 2008. While it may sound like a good report, in 2022, the airline recorded a net loss of $246 million.

The best result?

On Wednesday, Argentina’s National Audit approved the financial results of Aerolíneas Argentinas, which saw it in the black for $246 million. Nonetheless, the flag carrier’s administration celebrated the number. In a statement, the airline said,

“This is the best financial result since the National State took the decision to recover control of Aerolíneas in 2008. It represents a deficit reduction of 43.7% compared to 2021 and 64% compared to 2019 when losses reached $667 million.”

Pablo Ceriani, Chief Executive Officer of Aerolíneas Argentinas, said the carrier has improved its results year after year, even when facing the most complex global crisis in aviation’s history – the COVID-19 pandemic. He added that Aerolíneas is now a more efficient company, generating direct and indirect income benefiting everyone. “And we did it by opening new routes, flying more, and incorporating new business units.”

Requesting less money from the state

There has been plenty of criticism of Aerolíneas Argentinas over the years. The state-owned carrier has heavily depended on local taxpayers to keep on flying. It has been protected at all costs to the extent that only in the last few years have other airlines been able to gain some market share in the Argentinian domestic segment.

Last year, the company used 67% of the budget allocated by the Argentinian government. It employed about 47 billion pesos (or about $353 million). 2022’s budget also represented 50% of what the company received in 2021. Between 2008 and 2022, the state company received around $8 billion in government funds.

So far, in 2023, Aerolíneas has received six billion pesos ($27 million). This amount –according to the airline– corresponded to last year’s budget, meaning the carrier has not used the amount allocated by the government for 2023. This year, the company was budgeted to receive $412 million.

“Thus, the company not only requires less investment from the State but also reduced its share in the national budget: during 2023, Aerolíneas represents 0.31% of public expenditure, while in 2019, it was 0.48%. Finally, in 2022, Aerolíneas contributed 109 billion pesos to the national and provincial treasury in taxes, contributions, and fees. This is more than double what it received, 128%,” the airline stated.

What did Aerolíneas Argentinas achieve in 2022?

Last year, Aerolíneas Argentinas carried 11.67 million passengers. This year, the company expects to surpass 13 million travelers. The airline operated a network of 38 local destinations, 48 domestic routes, and 21 international destinations. The company held a 63% domestic market share and a 23.34% international share.

Throughout the year, the company signed a leasing contract to acquire two Boeing 737-800BCFs (of which the first arrived a few days ago), received new Boeing 737 MAX jetliners, and renewed its long-haul Airbus A330 fleet.

What do you think of Aerolíneas Argentinas’ financial result last year? Do you think the company will ever be profitable? Let us know in the comments below.

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  Aerolíneas Argentinas

  IATA/ICAO Code:

  AR/ARG

  Airline Type:

  Full Service Carrier

  Hub(s):

  Ezeiza International Airport, Aeroparque Jorge Newbery

  Year Founded:

  1949

  Alliance:

  SkyTeam

  CEO:

  Pablo Ceriani

  Country:

  Argentina

  Region:

  South America