LATAM confirms no return to domestic operations in Argentina
LATAM Airlines confirmed it will not resume domestic operations in Argentina. At the launch of the extension of its Joint Venture with Delta to include the country, it emphasized its continued focus on international connectivity to its hubs.
During the official launch of the LATAM–Delta Joint Venture for the Argentine market, Federico Jäger, VP of Global Indirect Sales & Strategy at LATAM Airlines, confirmed that the group does not plan to resume domestic flights in Argentina.
“Currently, we have no plans to operate domestic flights in Argentina, like we did previously with a local subsidiary and regular operations. That is not something defined or planned today,” said Jäger. “LATAM, like all companies, is always evaluating potential commercial opportunities, but at this moment, operating in Argentina is not on our roadmap. However, we do believe there are many opportunities to bring passengers to Argentina and connect them with the world.”
Florencia Scardaccione, LATAM's Commercial Director in Argentina, added, “Over the past year and a half, we’ve resumed many routes from the interior of the country that connect with our main hubs. Today, we fly not only from Buenos Aires but also have a significant and growing presence in Córdoba, Mendoza, Rosario, Salta, and Tucumán. We're working to ensure that not just Buenos Aires, but the entire country connects with Latin America and the world.”
LATAM Argentina ceased operations in June 2020, a decision driven by several factors, including the competitive environment following the entry of low-cost carriers, an unfavorable exchange rate, and the operational paralysis caused by the COVID-19 pandemic.
Before closing, the subsidiary was already facing financial difficulties, reporting nearly USD 300 million in losses over the three years leading up to the shutdown. Attempts to implement a restructuring plan involving union negotiations over productivity and efficiency failed to materialize.
The closure resulted in the loss of 1,700 jobs. By 2019, LATAM was the second-largest domestic carrier in Argentina, transporting 3.1 million passengers with a fleet of 13 Airbus A320s.
A logical, if unfortunate, decision
LATAM’s strategy to focus on international connectivity through its hubs in Santiago, Lima, and São Paulo stands in contrast to Aerolíneas Argentinas, which dominates the domestic network, and low-cost carriers Flybondi and JetSMART, which compete aggressively in the local market.
Even though the updated regulatory framework now allows LATAM to operate domestic routes using ninth freedom rights—without needing a locally certified subsidiary—the strategic choice to stay out of the domestic market makes sense, particularly after its agreement with Aerolíneas Argentinas.
That partnership allows LATAM to leverage existing capacity in a growing market, without the need to become a fourth major player in an already crowded space. With two well-established carriers holding 75% of the market—and Flybondi bringing the total to 99%—trying to carve out a small market share poses significant risk.
Moreover, LATAM’s interest clearly lies in the international market, where its operations already perform well. Its focus on long-haul connectivity and its new alliance with Delta offer a compelling value proposition for high-yield passengers traveling long distances.
Desde 2017, haciendo periodismo aeronáutico. Award-Winning Journalist: Ganador de la edición 2023 de "Periodismo de Altura", otorgado por ALTA. Facts don't care about your feelings.
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