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.
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.
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.
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.