Challenges in the Development of Regional Aviation in Argentina

The commercial aviation sector in Argentina experienced a year of significant developments and changes in 2024, marked by the adoption of historic liberalization measures aimed at increasing the country’s air connectivity. The primary objective of these measures is to provide greater access for Argentinians to air transportation at competitive prices.

One of the most notable advancements was the establishment of open skies agreements with several countries, along with regulatory changes that facilitate the entry of foreign airlines into the Argentine market. These measures included the removal of fare restrictions and the streamlining of administrative processes.

Amidst this wave of optimism and transformation, combined with the economic policies implemented by the new government, 2024 concluded with a total of 13.4 million passengers transported on international flights—an increase of 14% compared to 2023. However, the same trend was not observed in the domestic market, which recorded an 8% decline in passenger numbers, ending 2024 with a total of 15.9 million passengers.

Developing regional aviation in Argentina is essential, as the country ranks as the eighth largest in the world by land area and the second largest in South America. Argentina has 2,278 cities and 1,959 airports; however, fewer than 10% of these airports offer regular air services.

This sector experienced its golden age during the 1990s when then-President Carlos Menem implemented a deregulation policy alongside monetary stability. This environment led to the emergence of several regional airlines, with Argentina hosting up to 14 operating carriers in the latter half of the decade.

However, with the economic crisis of the early 2000s, this number was cut in half, reaching only six operators by 2016. During President Mauricio Macri’s administration (2015–2019), the so-called "aviation revolution" was introduced—an initiative aimed at revitalizing air transportation. This policy once again fostered the emergence of new operators, bringing the total number of airlines to 11 by 2018.

Nevertheless, the impact of the COVID-19 crisis, combined with a severe currency crisis, led to another decline. Currently, Argentina has only four active airlines:

In addition to the decline in the number of airlines, there has also been a reduction in the number of airports served by commercial air services:

The year 2025 is expected to be a positive one for regional aviation and has already begun with significant developments. One of the key highlights is the launch of Humming Airways, a new airline that will connect Buenos Aires to four regional destinations that currently lack commercial flights.

?Another noteworthy development comes from American Jet, which plans to expand its fleet and introduce new routes in collaboration with regional governments, such as the government of Santa Cruz. Additionally, several regional governments, including Santa Fe, are working to implement incentive policies aimed at attracting new operators.

Despite these advancements, challenges remain in achieving full regional connectivity across the country, particularly for operators using aircraft with up to 19 seats. As discussed in a previous article, Argentina has the highest navigation and landing fee burden on direct operating costs compared to other countries in the region:?

Furthermore, the government recently increased the airport usage fee for domestic flights (TUAC) by approximately 30%, a decision that runs counter to the needs of air transport users.

While there is much progress to acknowledge, sustained growth in regional aviation will depend on a balanced approach that fosters competition, reduces operational costs, and enhances accessibility. If these efforts continue, Argentina’s regional aviation sector can regain its rightful prominence, driving economic development and greater connectivity across the country.

Liberalization is reshaping Argentina’s aviation industry, but can it unlock the full potential of regional air travel? What do you think? Join the conversation!