Following two consecutive years of positive financial results, Aerolíneas Argentinas (AR) will not ask for more state subsidies. The state-owned Argentine carrier has rejected the idea of more government funding, even despite the rising fuel costs. Argentina’s government continues to pursue the carrier’s privatisation, but state subsidies have been rejected.
Speaking to Reuters on Oct. 20, chief executive Fabián Lombardo said the state-owned airline had become financially self-sufficient through workforce reductions, operational efficiencies, and cost controls. He confirmed that the government transfer to the airline took place two years ago and that the company did not expect additional funding.
Financial growth of Aerolíneas Argentinas
In 2025, Aerolíneas Argentinas reported a net profit of $155.7 million, its second consecutive profitable year since renationalising in 2008. The financial turnaround follows years of government support and investment. According to the airline, it received more than $8 billion in direct state transfers between 2008 and 2023. It had also announced its largest fleet renewal plan just over two months ago.
Lombardo reiterated that President Javier Milei’s administration remained committed to privatising the airline. He said:
“The company had to keep flying, but without losing money for the state.”
Any sale would require congressional involvement; President Milei said the management’s responsibility was to prepare the company financially and operationally for whatever decision the government ultimately makes.
Flybondi’s exit
Aerolíneas Argentinas has benefited from the exit of Flybondi (FBZ) from the market. Lombardo said the airline moved quickly to capture part of the nearly 300,000 seats left available by Flybondi’s bankruptcy, increasing the domestic market share for Aerolíneas Argentinas to approximately 70%.
The carrier is also pursuing a fleet renewal programme involving A330-900Ns and 14 B737 MAX aircraft, financed through its own resources.
If your national airline stopped receiving government support, would you still trust and fly with it? Let us know in the comments below!
