The involvement of private capital in Aerolíneas Argentinas, criticism of the actions of unions in conflict with the company, and the 70% reduction in operational deficits, along with a 13% cut in the workforce during the first half of the year compared to 2023, were the central topics addressed by company president Fabián Lombardo in an internal communication to employees.
“This week, we completed the most important management initiative of the year: the voluntary retirement and early retirement program. Thanks to the efforts of all departments and over 1,500 employees who chose to seek new opportunities, we will end the year with a workforce of around 10,400 employees—a 13% reduction compared to the end of 2023. This brings us closer to industry standards, a huge achievement for Aerolíneas Argentinas,” Lombardo said in the opening of his message.
He added that “this is not our only milestone. In the first half of this year, we reduced the operating deficit by more than 70%, from $272 million to $79 million. In July alone, we generated a genuine profit of more than $20 million. The last time we saw a positive operating result during the winter season was in 2017.”
“This proves that our efforts are paying off and reinforces our goal of halving the annual deficit compared to 2023. If we succeed, there won’t be a reason to celebrate, but we will demonstrate to the industry and the Argentine public that we are on the right track to steer the company in the correct direction. Initiatives like canceling unprofitable routes and relaunching overnight flights show that we can respond quickly to seize new opportunities,” Lombardo continued.
Looking ahead, Lombardo emphasized that “the future of Aerolíneas Argentinas will undoubtedly be more promising the more it evolves to resemble other industry competitors, especially if we open up to new partners and alliances in the market. We must move beyond the notion that Aerolíneas’ identity is defined by its ownership. What has remained constant throughout the company’s history is the unwavering commitment of its people. That is its true essence, and one of its greatest assets.”
He also addressed the ongoing union conflict that threatens flight operations, stating, “Today, we face a complex union conflict that endangers this future. It’s unacceptable that every attempt we made to mitigate the impact of successive, unexpected strikes was met by union changes designed solely to harm our passengers. We must remember that our customers are the lifeblood of this company, especially one that still operates thanks to taxpayer support. All Argentines made a tremendous effort this year, and we are not an exception.”
“I want to make it clear that we have met with union representatives on several occasions, offering proposals that involve significant effort on our part. Still, we received no positive responses. Only the APTA union understood the situation and chose to support our proposals, for which we are grateful. I deeply regret this situation, which tarnishes the sacrifice of all those who want Aerolíneas Argentinas to move forward, maintaining its image, service, and commitment to those who choose to fly with us,” the executive stated in the letter.
Lombardo made it clear that he will not allow “abusive and harmful practices against passengers to dictate the direction of management. Threats, public shaming, and the outdated tactics of heavy-handed unionism have no place in today’s Argentina. I urge union leaders to use good judgment and unblock the possibility for workers who genuinely need urgent salary adjustments to receive them, within the framework of what is viable and in the current context of the country.”
He concluded by expressing his belief that “our differences today will become anecdotal in the near future when Aerolíneas Argentinas reaches its full potential. I trust that we can resolve these issues through good faith from all parties,” and ended by thanking the employees for their ongoing efforts.
