ALTA presents the Argentina Aviation Insight: Analysis and Perspectives of the Argentine Air Market
This report, based on data provided by the Amadeus Travel Intelligence platform, classifies and analyzes the main demand and capacity indicators of aviation in the country, as well as the most relevant airports and city pairs in terms of volume and growth
August 29, 2024
Panama, September 2, 2024 - Argentina's commercial aviation market recorded a total demand of 28.6 million passengers in 2023, with the domestic market accounting for 58% of this figure. These data are part of the Argentina Aviation Insight, a report prepared by the Latin American and Caribbean Air Transport Association (ALTA), which provides a comprehensive overview of the aviation sector in Argentina.
This report, based on data provided by the Amadeus Travel Intelligence platform, classifies and analyzes the main demand and capacity indicators of aviation in the country, as well as the most relevant airports and city pairs in terms of volume and growth.
The document reveals that, in 2023, total air traffic in Argentina grew by 32% compared to 2022, driven mainly by the international segment, which saw an increase of 38.2% compared to the previous year.
In 2023, the international market to and from Argentina had a total capacity of 14.3 million seats offered and transported 11.9 million passengers. Latin American and Caribbean airlines accounted for 71% of international capacity, with 10.1 million seats, marking a 40% growth compared to 2022. The Argentina Aviation Insight also highlights that 29 airlines operated in Argentina's international market, covering 74 city pairs, with an average flight distance of 3,568 km.
In contrast, the first half of 2024 presented a mixed scenario, marked by moderate global growth and a notable disparity between the performance of domestic and international markets.
Overall, the Argentine aviation industry experienced a 2% increase in total passenger traffic compared to 2023. However, this growth masks the reality of a domestic market facing significant challenges, in contrast to a more robust international segment, according to José Ricardo Botelho, Executive Director and CEO of ALTA.
“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,” explained Botelho.
“In response to these challenges, the Argentine government has initiated a series of reforms in its aviation policy, aiming to align the domestic regulatory framework with international standards, particularly those of Mercosur countries. These reforms, which include the modernization of the Aeronautical Code and technical regulation by the National Civil Aviation Administration (ANAC), aim to provide the market with the necessary flexibility to improve the sector’s competitiveness,” added Botelho.
Highlights of the Argentine Air Market
According to the report, Argentina consolidated in 2023 as the fourth-largest aviation market in Latin America in terms of Available Seat Kilometers (ASK), representing 6.3% of the region’s total capacity. The country registered a total capacity of 34.3 million seats, of which 58% correspond to the domestic market.
The Buenos Aires (AEP) - Mendoza route was the most in-demand in the domestic market, with 1.29 million passengers and 1.51 million seats, achieving a load factor of 85%. Additionally, this city pair also led passenger growth, with an increase of 341,000 in 2023. Meanwhile, the Buenos Aires (AEP) - Córdoba route stood out for the largest increase in seat capacity, with 435,000 additional seats. Aeroparque Airport (AEP) recorded the highest growth in terms of seat capacity and boarded passengers, with over 2.5 million seats and 2 million additional passengers compared to 2022.
Argentina has great growth potential, with a per capita travel rate of 0.58, which has remained stable since 2017. In contrast, the per capita travel rate in the Latin American and Caribbean region is 0.62, having grown by 10% compared to 2017. Countries like Chile and Colombia have increased their travel rates by 8% and 23%, respectively, since 2017. Additionally, Argentina ranks 18th out of 20 in the competitiveness index of the Latin American and Caribbean Air Transport Association (ALTA), indicating ample opportunities for improvement, particularly in areas related to passenger taxes, fees, and contributions, as well as in reducing the operational costs of airlines. Improvements in these aspects would not only boost the country’s competitiveness in the aviation sector but also create a more favorable environment for air traffic growth.
"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", says Botelho.
Check out the full report here.
