The Latin American and Caribbean Air Transport Association (ALTA) has released a detailed analysis of Argentina’s aviation market trends, growth, and future potential. The report, titled ‘Argentina Aviation Insight,’ reveals that the country’s aviation sector experienced a significant surge in 2023, with total passenger demand reaching 28.6 million. Domestic travel accounted for 58% of this figure.
The analysis, based on data from the Amadeus Travel Intelligence platform, highlights a 32% increase in total air traffic in 2023 compared to the previous year. This growth was largely driven by a robust international segment, which saw a 38.2% increase year-over-year. In 2023, the international aviation market involving Argentina offered a total capacity of 14.3 million seats and carried 11.9 million passengers. Airlines from Latin America and the Caribbean were responsible for 71% of this international capacity, totaling 10.1 million seats, reflecting a 40% growth from 2022.
While the first half of 2024 saw a moderate global expansion, the Argentine aviation industry recorded a 2% increase in total passenger traffic compared to the same period in 2023. However, this figure masks the underlying challenges faced by the domestic market, which experienced a 7.1% decrease in passenger numbers.
José Ricardo Botelho, Executive Director and CEO of ALTA, emphasized the need for urgent attention to the domestic market. He stated, “In the first six months of 2024, 7.5 million passengers were transported on domestic flights, representing a 7.1% decrease compared to the same period in 2023. This decline highlights that, while international traffic contributes to overall growth, the domestic market urgently requires attention to prevent further erosion in its performance.”
To address these challenges, the Argentine government has initiated a series of aviation policy reforms aimed at aligning the domestic regulatory framework with international standards, particularly those of Mercosur countries. These reforms include the modernization of the Aeronautical Code and technical regulation by the National Civil Aviation Administration (ANAC). Botelho explained, “These reforms aim to provide the market with the necessary flexibility to improve the sector’s competitiveness.”
The report highlights that in 2023, Argentina established itself as the fourth-largest aviation market in Latin America based on Available Seat Kilometers (ASK), accounting for 6.3% of the region’s total capacity. The country’s overall seat capacity reached 34.3 million, with the domestic market contributing 58% of this capacity.
Within the domestic market, the route between Buenos Aires (Aeroparque – AEP) and Mendoza emerged as the most popular, transporting 1.29 million passengers and achieving an impressive load factor of 85%. This route also led in passenger growth, with an increase of 341,000 passengers in 2023. The Buenos Aires (AEP) – Córdoba route recorded the largest expansion in seat capacity, adding 435,000 more seats. Aeroparque Airport (AEP) showed the highest growth in terms of both seat capacity and boarded passengers, with an additional 2.5 million seats and over 2 million more passengers compared to 2022.
Despite these positive aspects, Argentina’s aviation sector possesses significant growth potential. Its per capita travel rate of 0.58 has remained constant since 2017, lagging behind the Latin American and Caribbean region’s average of 0.62, which has seen a 10% increase since 2017. Countries like Chile and Colombia have witnessed even more substantial growth in travel rates during this period. Furthermore, Argentina ranks 18th out of 20 on the competitiveness index by the Latin American and Caribbean Air Transport Association (ALTA), highlighting substantial room for improvement, particularly concerning passenger taxes, fees, and operational costs for airlines.
Botelho emphasizes the need for strategic collaboration to capitalize on Argentina’s growth potential. He stated, “This underscores the need to implement policies and strategies that drive the development of the Argentine air market, with the goal of increasing air traffic and fully capitalizing on the economic benefits of tourism and aviation, both nationally and internationally. Collaboration between the government, airlines, and airport operators is essential to capitalize on the country’s growth potential and ensure that the Argentine air market significantly contributes to economic development and integration with global aviation growth trends.”
