Aerolineas Argentinas - still losing money

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  • Not too many airlines are losing money right now with ticket prices at the highest for some time - here is an analysis of Aerilines lstest financial results.


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    Still Not Profitable: Aerolineas Argentinas Posts Best Financial Result

    BYDANIEL MARTÍNEZ GARBUNO
    PUBLISHED 1 DAY AGO

    The carrier has not been profitable since nationalized by the state in 2008.


    SUMMARY

     Aerolíneas Argentinas has posted a net loss of $48 million in the first half of 2023, a significant improvement from its $667 million net loss in 2019. The airline's current administration is focused on turning the company around and has seen a 61% reduction in losses compared to 2022, the best year since its nationalization.


    Aerolíneas Argentinas is having its best financial year since 2008 but still posted a $48 million net loss during the first half of 2023, according to the company’s latest statement. This net loss, nonetheless, represents an 80% decrease compared to 2019’s $667 million net loss.

    Reducing losses

    Aerolíneas Argentinas’ current administration is focused on turning the state company around after years of inefficiency and massive net losses. 2023 seems to be the airline’s best year since the Argentinian state acquired the brand in 2008.

    The flag carrier showed in its semi-annual financial statement a 61% reduction in losses compared to 2022, the best year since its nationalization. Aerolíneas Argentinas also noted it had not received the funds allocated in the country’s budget for the carrier for this year. Instead, Aerolíneas Argentinas has received six billion Argentinian pesos (about $17 million) from the 2022 budget, of which only 70% has been employed, the company explained.


    If we take the results from 2019, the last year before the pandemic, the reduction in net losses exceeds 80%. That year, Aerolíneas had a negative result of $667 million during the year. In 2022, the airline posted a yearly net loss of $246 million.

    Pablo Ceriani, Chief Executive Officer at Aerolíneas Argentinas, said,

    “It's an excellent result and, projected in the short or medium term, indicates that we are on the path to economic sustainability. Today, we have a company with historically low levels of losses, flying to new destinations, with new domestic routes, more airplanes, and passenger records.”

    He added that the financial results demonstrate that growth is the appropriate route to achieve an economically efficient carrier with a strategic role in connectivity and the country’s development.

    How’s the recovery going?

    Aerolíneas Argentinas is powered by a fleet composed of 81 aircraft. According to data from ch-aviation, the state carrier currently operates nine Airbus A330-200s, eight Boeing 737-700s, 29 B737-800s (plus two 737-800BCFs for cargo-only operations), seven MAX 8s, and 26 Embraer E190s, inherited from its merger with Austral, also a former government-run company.


    In July, the company set a new record for carried passengers in a single month with 1.25 million. This number represents a 12% increase compared to July 2019, showing the recovery of the South American aviation market beyond pre-pandemic figures. During the month, Aerolíneas reached the highest record of carried passengers in a single day with 46,331, surpassing the 2018 figure of 45,769.

    Aerolíneas Argentinas said the main domestic destinations were Bariloche (116,000 passengers), Córdoba (75,000), and Mendoza (60,000). Meanwhile, Sao Paulo was the airline’s leading international destination, with 41,000 passengers.

    To record this, Aerolíneas Argentinas expanded its capacity by 10% compared to pre-pandemic figures. Moreover, the carrier focused specifically on increasing the seat offer to leisure winter destinations.

    Pablo Ceriani said the growth this year is encouraging for the entire Argentinian airline industry. “Today, Aerolíneas operates to 3 new domestic destinations and 12 more federal routes than in 2019. And it does so by investing, generating more revenue, and moving towards sustainability,” he added.

  • Only 2 observations at this UK ungodly hour.


    When I was in Bariloche in February, I was surprised to see the local office of Aerolineas Argentinas permanently closed. I'm fairly certain I have a photo of the sign on the front door. When, as above, Bariloche is cited as as a main destination one wonders why the office is closed. Yes, much is booked online these days but still. Take a visit to their main office down near Plaza de Mayo and experience the wait to book a flight in person.


    I haven't looked at their accounts (yet) but I'd be fascinated to see how they arbitrage their foreign currency transactions.

  • ''The carrier has not been profitable since nationalized by the state in 2008.'' That's why Argentina lags many years behind the first world.


    Normal countries offloaded their loss making flag carriers to the private sector yonks ago. The vast majority of them had far too many staff on very generous t&c's. When the low cost airlines arrived on the scene the game was over for them.

  • Hello everybody,


    I arrive in Argentina on the 11th September...


    For the first time I will be flying JetSMART from AEP to Posadas (PSS)...instead of AA


    For the same price as 10 kg baggage, I get priority boarding, 23kgs, all about 15% cheaper.

    Airbus 230 instead of Embra aire,


    Hasta Pronto...

  • My first 3 or 4 trips to Argentina were on Aerolineas Argentinas from London in the 90s. Leather seats (no surprise there) decent food and drink in economy. They were pretty good.


    But that's 30 plus years or more ago. God, I'm getting old!

  • My first 3 or 4 trips to Argentina were on Aerolineas Argentinas from London in the 90s. Leather seats (no surprise there) decent food and drink in economy. They were pretty good.


    But that's 30 plus years or more ago. God, I'm getting old!

    In the nineties, they were a decent airline. Great bunch of engineers and European quality maintenance.


    Right now , I dont want to make any comments.

  • I flew the opposite way a couple of years ago, and I have zero complain. The flight was very short, the departure airport so small that it seemed excessive to have security check of handbags.

    I did shop a lot priori to boarding and they didn’t make any fuss about my extra shopping bags. Of course, nothing sealed nor official. I bought some more mate, sugar and local produce.

    Very nice experience! I had a window seat and the guy next to me was very young, clearly on his first flight ever, so I offered him my seat because he wanted to take birdeye pics to send to his family and gf. So cute!