ARGENTINA · COMPANY NEWS
Key Facts
- —What is happening Argentina’s state-owned flag carrier Aerolíneas Argentinas lost ARS 95,580 million (about US$63 million) in the first half of 2026, after two profitable years, and says jet fuel is to blame.
- —Why it matters The airline says it paid the bill from its own cash and asked the Treasury for nothing, which bears on Argentina’s public-company accounts.
- —The numbers Costs rose 38.3% against 20.7% for revenue, and the company puts the fuel overrun above US$100 million, an operating loss (EBIT) of US$84 million and a positive EBITDAR of US$64 million.
- —Who is who Fabián Lombardo has chaired the airline since late 2023, under President Javier Milei, whose Economy Ministry (headed by Luis Caputo) publishes the state-company budget report behind the figures.
- —What to watch The company expects fuel to cost about US$150 million extra over 2026, 50% above plan, and does not expect a big price drop soon.
- —Power Index Argentina ranks 4th of 14 in The Rio Times Latin America Power Index, with 61.2 points (October 2026 edition).
- —What it means for you The airline is state-owned, so there are no shares to buy, but a fuel-driven squeeze may reach fares and Argentina’s fiscal numbers, which US bondholders watch.
Aerolíneas Argentinas lost about US$63 million in the first half as jet fuel rose roughly 90%. It says it needed no new state money.
Aerolíneas Argentinas, Argentina’s state-owned flag carrier, lost ARS 95,580 million (about US$63 million) in the first half of 2026. It follows annual profits in 2024 and 2025, and the airline blames the price of jet fuel.
The figures come from the Economy Ministry’s budget report on public companies, as reported on Thursday, 22 October, by Infobae and iProfesional. Company sources told both outlets that it covered the loss from its own cash.
Conversions in this article use a rate of ARS 1,527.85 per US$1, taken from open.er-api.com on 23 October 2026. Both outlets give the loss as roughly US$63 million, which matches.
Aerolíneas Argentinas Loss and the Fuel Shock
Costs rose 38.3% from a year earlier in the first half, while revenue grew 20.7%. That gap is the squeeze the airline describes.
Company sources say jet fuel, known as Jet A-1, rose about 90% from the start of the Middle East crisis. They call it the highest price in over a decade, topped only by a brief spike in 2022.
The airline puts the extra fuel cost at more than US$100 million in the first six months. It says the operating result would have stayed positive at the fuel prices written into its 2026 budget.
Its operating result before interest and taxes (EBIT) was a loss of US$84 million. Without the fuel overrun, the company says, EBIT would have been a profit of about US$25 million.
From Profit Back to Loss
First-half EBIT improved from a loss of about US$266 million in 2023 to a loss of US$44 million in 2024. In 2025 it reached a profit of US$66 million.
The company credits cost cuts and higher productivity since 2024 for that turnaround. It adds that it still earned a positive EBITDAR of US$64 million in the first half of 2026.
EBITDAR is a profit measure that leaves out interest, taxes, depreciation, amortisation and aircraft rental. A positive figure means flying itself still generates cash before those items.
For context, see earlier coverage of the resignation of Argentina’s energy and mining coordinator and of Argentina’s country risk above 700 points. Oil’s wider effect is covered in Brazil’s fuel subsidies and US$113 oil, with more in the Argentina section.
No Money From the Treasury
The airline says it has taken no Treasury funds since mid-2024 and does not plan to this year or in 2027. Company sources say the loss was paid from opening cash, with no state contribution or bank loan.
That contrasts with 2008 to 2024, when the airline received state transfers of more than US$8,000 million (US$8 billion). The company’s sources cite this figure.
The airline also says it paid every financial maturity due in the half without refinancing. In June it finished repaying the Global ARSA financial trust, taken out in October 2023 for US$100 million.
By the end of 2025 it had also settled the pending finance-lease payments on its 30 owned aircraft. The company presents this as part of keeping its finances balanced despite higher fuel costs.
What It Means for US Readers
Aerolíneas Argentinas is state-owned and not listed, so there are no shares or ADRs for US investors to trade. The result shows how a fuel shock hits a state company that says it no longer takes Treasury money.
Argentina’s public accounts matter to US bondholders. According to the company, the loss was funded from cash, so it does not add to Treasury spending.
The fuel shock is global, and the airline trade body IATA cut its 2026 profit forecast in June to US$23.0 billion. That is down from US$41 billion, and IATA cites Middle East disruption and high fuel costs.
US travellers flying to Buenos Aires may see this in fares, although the airline has announced no fare change. Nothing in the reports names any US route.
What Is Not Known
The Economy Ministry’s report could not be opened, so the ARS 95,580 million loss and growth rates rest on Infobae and iProfesional. The blame placed on fuel, plus the EBIT, EBITDAR and cash statements, come from company sources, not audited accounts.
It is not known whether fares will rise or routes will be cut because of fuel. Full-year results, and whether the second half was less costly than the first, have not been published.
What Comes Next
The company estimates a fuel overrun of about US$150 million over the full year, 50% above budget. It says the heaviest blow fell in the first quarter, in the low season, with summer tickets already sold.
These reports show no rescue and no fare rise. The next hard data point is the full-year result for 2026, for which no date is announced.
Frequently Asked Questions
How much did Aerolíneas Argentinas lose in the first half of 2026?
It lost ARS 95,580 million (about US$63 million). The figure comes from the Economy Ministry’s report on public companies, as reported by Infobae and iProfesional.
Why did Aerolíneas Argentinas lose money?
The company blames a rise of about 90% in jet fuel prices since the Middle East crisis began. It says the extra cost was more than US$100 million in six months.
Did Aerolíneas Argentinas ask the government for money?
No, according to the company. It says it has taken no Treasury funds since mid-2024 and covered the loss with its own cash.
Is Aerolíneas Argentinas listed on a stock exchange?
No, it is a state-owned company, so there are no shares to buy. Its results appear in the government’s public-company budget report.
Will the loss raise ticket prices?
That is not known. The airline has announced no fare change, and it does not expect fuel prices to fall much soon.
Sources: Infobae, 22 October 2026; iProfesional, 22 October 2026 (both citing the Economy Ministry report on public-company budget execution and Aerolíneas Argentinas sources); IATA, June 2026 industry outlook; open.er-api.com exchange rates, 23 October 2026 (all accessed 23 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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