CAAP Hikes Domestic Passenger Fee in Argentina

DALLAS — On October 9, 2024, Corporación América Airports ( CAAP), one of the largest private airport operators globally, announced an increase in domestic passenger fees at airports in Argentina. 

The country’s airport regulator, ORSNA, issued Resolution No. 29/2024, which raises the fee from ARS2,540 to ARS5,685 for flights departing from airports managed by the company’s subsidiary, Aeropuertos Argentina 2000 (AA2000). 

The new fee applies to tickets issued from the date the resolution was published and comes into effect for travel taking place 30 days later.

Deregulation of Argentina's Skies

Argentina's domestic air transport market is changing, as the government deregulated the business and allowed foreign carriers to operate.

In September 2024, President Javier Milei signed Decree No. 844/2024, allowing international airlines to fly domestic flights without registering aircraft or employing local personnel. The decree also attempts to make the market more competitive by fostering fair competition, deregulating rates, and allowing for greater frequency distribution flexibility.

The decree also enables foreign crews and planes to operate in Argentina. Argentina's Airline: Aerolíneas Argentinas (AR), Argentina's largest airline, offers flights to over 66 national and international destinations. However, the government plans to privatize the airline.

Flybondi (FO) is a local low-cost airline that has seen its customer base grow in recent years. JetSMART Argentina (WJ) is a Chilean carrier with a 15% share of the local market. Argentina's air transport market is predicted to grow by 92% over the next 20 years, supporting almost 565,000 jobs and generating approximately US$22.5 billion in GDP.

About Corporación América Airports

Corporación América Airports is a crucial player in the airport concession business, operating 52 airports in six countries across Latin America and Europe, including Argentina, Brazil, Uruguay, Ecuador, Armenia, and Italy. 

In 2023, the company handled 81.1 million passengers, reflecting a significant recovery post-pandemic. The numbers exceeded 2022 by 23.7%. The company is publicly traded on the New York Stock Exchange under the "CAAP."