Fuel Costs Push Argentina’s State Airline Into First-Half Loss
Aerolíneas Argentinas recorded a loss of about US$63 million in the first half of 2026, ending two profitable years, with management pointing to sharply higher jet fuel expenses. Operating costs climbed 38.3% while revenue grew 20.7%, and the state-owned carrier said it used its own funds rather than requesting Treasury support. It expects fuel costs to exceed its plan by roughly US$150 million for the full year.
Aerolíneas Argentinas is state-owned, so the first-half shortfall of roughly US$63 million appears in public-company reporting rather than shareholder results. The carrier had posted profits in 2024 and 2025 before costs outpaced revenue by a wide margin.
Management attributes the reversal to Jet A-1 prices that climbed about 90% after the Middle East crisis. Fuel added more than US$100 million in first-half expense; EBIT was a US$84 million loss, while EBITDAR remained positive at US$64 million. The airline covered the gap internally and projects a full-year fuel overrun near US$150 million.
The loss may sharpen scrutiny of state-company finances as Argentina’s government manages fiscal pressures. Passengers could face higher fares or fewer route choices if fuel costs stay elevated, while employees and suppliers may see tighter cost discipline. Because the carrier says it avoided new Treasury support, near-term effects on public accounts may be limited, though bondholders could still watch whether fuel-driven losses persist and whether they eventually require policy responses.