Aerolíneas Argentinas reported this Monday (4) that it projects to achieve profits of USD 32 million during the 2023 fiscal year, which would represent the first time its balance sheet exits the red since its nationalization in 2008. Moreover, this year they will not execute any of the funds assigned to the budget by the national government.
This news comes a week after Javier Milei assumes the presidency of the Argentine Republic, who before and during his campaign, and even after winning the second round, stated that his intention is to privatize all public companies, proposing a specific plan for Aerolíneas Argentinas that would consist of transferring ownership to the workers with working capital for one year, so that they can then be responsible for making it economically sustainable.
See also: The Future of Argentine Commercial Aviation under President Milei
In August, Aerolíneas Argentinas had already advanced a half-year balance with losses for USD 48 million, a figure 61% lower than the same period in 2022, and 81% less than in 2019, which marked the trend of deficit reduction after obtaining red numbers of USD 667 million in 2019, USD 654 million in 2020, and USD 439 in 2021.
The company also detailed through a statement that revenues in 2023 would be at USD 2.126 billion, 24% more than in 2022, and 34% more than in 2019, highlighting also the USD 100 million obtained from the capital market through a trust administered by the Bank of Investment and Foreign Trade.
See also: Aerolíneas Argentinas obtains USD 100 million in the capital market
“Aerolíneas demonstrated, in a very short time, that with a serious and responsible Business Plan, sustainability is possible. And we did it without using the budget assigned by the State, with a record number of passengers, more planes, more destinations, more routes, and adding value to the entire tourism sector,” said Pablo Ceriani, president of Aerolíneas Argentinas.
Aerolíneas Argentinas also highlighted these data:
- In 2023 they transferred ARS 176 billion to the state (USD 1 = ARS 900 in the free market or ARS 376 at the government-controlled rate), versus ARS 6 billion received corresponding to the 2022 budget, which in turn was executed only at 67%.
- They expect to close the year transporting a record number of 14.05 million passengers, projecting that in 2024 they will surpass 16 million.
- In the last 4 years they incorporated three new destinations and 18 new routes, totaling 39 destinations in Argentina (21 of them without competition), and 52 routes without passing through Buenos Aires.
- Internationally they reach 22 destinations (including Porto Seguro starting in January 2024).
- In 2023 they reached a total of 84 operational aircraft, which also represents a record. They project that there will be 90 in December 2024, the date they estimate the new E195-E2s will start to arrive.
- This year they also added the first two pure cargo planes.
- The CEFEPRA, a training center for crews, generates savings of USD 7.6 million per year, and also generated revenue of USD 2 million by providing services to third parties.
- The maintenance area generated income of USD 4.9 million for services to other airlines.
