On March 5, 2024, Aerolíneas Argentinas implemented changes to its fare structure, introducing some “low cost” concepts for selecting ancillaries on domestic routes. The modifications are mainly aimed at the “Promo” and “Base” fare categories, which offer the lowest prices.
For the “Promo” fare, the option to carry on hand luggage will be removed, including only a backpack or handbag of up to 3 kilograms in the fare.
For the “Base” fare, checked luggage will no longer be included, but passengers will still be able to carry on hand luggage of up to 8 kilograms and a personal item of up to 3 kilograms.
Furthermore, in the Promo, Base, and Plus families, the penalty for changes is unified into a single fee, eliminating the distinction between pre/post departure changes and no-show changes.
Adding luggage to the “Promo” and “Base” fare categories will incur an additional cost of ARS 10,499 (~USD 10) for all domestic destinations or ARS 8,677 for flights to Tierra del Fuego.
It is important to note that these changes only apply to domestic flights and tickets purchased from March 5 onwards. Tickets acquired before this date are not affected by the new fare structure.
Is Aerolíneas Argentinas moving to a low-cost model?
This adjustment marks the first significant modification in the fare structure since 2018, a move driven by the need to compete with low-cost airlines. Currently, Flybondi and JetSMART together hold a 40% market share of domestic passenger movement. However, it is worth mentioning that Aerolíneas Argentinas operates in 27 destinations not served by low-cost carriers.
In a regional landscape increasingly influenced by low-cost airlines, traditional airlines like Avianca and LATAM have already adopted this concept in their domestic and regional flights. European airlines have also made similar changes to remain competitive against low-cost carriers. Although, of course, the adoption of a “low-cost” model goes much further than charging for additional products and also encompasses other areas of an airline.
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While it adapts to certain low-cost characteristics, Aerolíneas Argentinas stands out as one of the few regional airlines that still offers a business class. By the end of 2023, Pablo Ceriani hinted at a plan to reconfigure the Boeing 737 Next Generation and Boeing 737 MAX airplanes, replacing business class with a Premium Economy, on par with GOL, LATAM, or Avianca.
See also: “In Latin America, the Low Cost model does not exist”: Germán Efromovich, unfiltered
For now, Aerolíneas Argentinas will not introduce the sale of onboard services, a feature often associated with low-cost airlines. The airline will maintain its offer of complimentary snacks on domestic and regional flights.
Currently, Avianca stands out as the only airline that has opted for a paid onboard menu for its domestic and regional flights, while others continue to offer complimentary menus, except for low-cost airlines like SKY, JetSMART, Arajet, and Flybondi.
