Background on Aerolíneas Argentinas
Aerolíneas Argentinas, the flag carrier airline of Argentina, has reported its first accounting net profit since 2008. The company, which was re-nationalized in 2008, has seen a significant turnaround with a net profit of 271,000 million Argentine pesos (approximately $129.1 million) in 2024.
Historical Context and Relevance
Since its re-nationalization, Aerolíneas Argentinas has faced financial challenges, with an average annual operational loss of 400 million USD (EBIT) over the past 16 years. However, in 2023, the company managed to reverse its losses, reporting a contingent loss of 385,000 million Argentine pesos (approximately $17.6 million), a 170% improvement from the previous year’s loss.
Key Financial Achievements in 2024
Aerolíneas Argentinas’ 2024 financial results showcase a remarkable transformation:
- Net Profit: The airline reported a net profit of 271,000 million Argentine pesos (approximately $129.1 million).
- Gross Profit Before Interests and Taxes (EBIT): For the first time, Aerolíneas Argentinas achieved gross profits of $56.6 million.
- Operational Milestones: The airline’s revenues surpassed operational costs, marking a significant milestone in its recent history.
The airline attributes this success to improved commercial programming, including the cancellation of loss-making routes, and lower fuel costs compared to the previous period.
Market Share and Workforce
According to ANAC data, Aerolíneas Argentinas held a 58% market share in the local market during June 2024, down from 62% in the same month of the previous year. Despite this slight decrease, the airline still leads its category.
In terms of workforce, Aerolíneas Argentinas has reached its lowest number of employees in the past 15 years, with a reduced average of staff per aircraft in its history. Through voluntary retirement programs, 1,600 employees left the company, eliminating 85 managerial positions, including eight directorships, 20 managements, and 57 additional roles.
Government Support and Future Plans
Since its return to state ownership in 2008, Aerolíneas Argentinas has received approximately $8 billion. The airline confirmed that, as of mid-2025, it did not request any transfers from the National Government.
The Argentine Ministry of Economy also approved Aerolíneas Argentinas’ Action Plan and Budget for 2025, projecting a favorable operational result of around 59,000 million Argentine pesos (approximately $2.7 million) for the current year. Furthermore, the plan anticipates a year with zero contributions from the National Treasury.
Key Questions and Answers
- What is the significance of Aerolíneas Argentinas’ 2024 financial results? Aerolíneas Argentinas reported its first accounting net profit since 2008, with a net income of $129.1 million and gross profits before interests and taxes (EBIT) of $56.6 million.
- How did Aerolíneas Argentinas achieve this financial turnaround? The airline attributes its success to improved commercial programming, the cancellation of loss-making routes, and lower fuel costs compared to the previous period.
- What is Aerolíneas Argentinas’ current market share? In June 2024, Aerolíneas Argentinas held a 58% market share in the local market, down from 62% in the same month of the previous year.
- How has Aerolíneas Argentinas managed its workforce? The airline has reduced its workforce to the lowest level in 15 years, with a smaller average of staff per aircraft. Through voluntary retirement programs, 1,600 employees left the company.
- What government support has Aerolíneas Argentinas received since 2008? Since returning to state ownership in 2008, Aerolíneas Argentinas has received approximately $8 billion. The airline confirmed that, as of mid-2025, it did not request any transfers from the National Government.
- What are Aerolíneas Argentinas’ financial projections for 2025? The Argentine Ministry of Economy approved Aerolíneas Argentinas’ Action Plan and Budget for 2025, projecting a favorable operational result of around $2.7 million (59,000 million Argentine pesos) for the current year. The plan anticipates a year with zero contributions from the National Treasury.
