In a significant shift in commercial policy, starting March 1st, Aerolíneas Argentinas will no longer allow the accumulation of miles and ticket redemption for officials traveling with tickets paid for by public agencies.
This measure, as explained by the company to the state agency Telam, responds to the airline’s need to reduce significant costs that this practice has represented in the past. The Argentine flag carrier faced a cost of 2.364 billion pesos (approximately US$ 2.7 million) in 2023 alone due to the redemption of miles accumulated on official trips.
Until now, tickets purchased by governmental entities allowed passengers to accumulate miles. Last year, Telam details, around 80 million miles were credited to officials who traveled for state reasons, resulting in the redemption of more than 10,000 tickets for personal use, including about 1,000 executive class tickets.
The accumulation of miles for trips paid for by the State has been identified as a source of liabilities in dollars for the company, leading to this strategic decision. «The company’s decision is made considering that it is a benefit that originates from a payment from the State, and that it generates a debt in dollars to the State itself,» stated Aerolíneas Argentinas.
This happens as the airline faces the intention of Argentine President Javier Milei of privatizate it.
In line with a focus on improving productivity and efficiency, Aerolíneas Argentinas has highlighted that the commercial and operational decisions taken in this phase of management are designed to align with objectives of resource optimization and improvement of economic results towards the end of the year.
The airline also reported on its positive performance in the summer season, with a record of more than 1.3 million passengers transported in January, a 12% increase compared to the same month last year, and a notable improvement in its punctuality.
