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Unstable Currency Leads American Airlines To Stop Accepting Pesos In Argentina

by Staff

Summary

  • American Airlines has stopped accepting the Argentine peso and now lists prices in US Dollars due to economic instability.
  • Argentina’s president outlined plans to shut down the Central Bank and move towards US Dollars as part of his pre-election manifesto.
  • American Airlines faces competition on its Buenos Aires routes from the likes of Delta Air Lines and Aerolíneas Argentinas.


American Airlines has stopped accepting the Argentine peso, with the carrier now listing all prices on its website for tickets from Argentina in US Dollars. The move comes following increasing instability in Argentina’s economy and the recent devaluation of the peso.


Ongoing economic uncertainty

Back in December, Argentina’s new president, Javier Milei, cut the value of the peso by 50% in a bid to tackle the rampant inflation that has been at the heart of the country’s economic crisis. Inflation recently reached as high as 160%, and as a result, it now takes around 810 Argentine pesos to buy one US Dollar. Throughout his election campaign, President Milei made no secret of his desire to shut down the Central Bank of Argentina and move towards US Dollars.

Photo: Vincenzo Pace | Simple Flying

Simple Flying has reached out to American Airlines for comment. This is not the first time that the airline has stopped accepting the Argentine peso. According to The Messenger, the carrier temporarily suspended payments in pesos in 2015, citing exchange problems with the US Dollar.

Up to five flights per day from the US to Buenos Aires

American Airlines flies to Buenos Aires (EZE) from two of its hubs on a year-round basis – New York (JFK) and Miami (MIA), and from Dallas (DFW) on a seasonal basis. The oneworld member deploys its Boeing 787 and 777 aircraft on the routes, which can carry between 234 and 304 passengers, depending on the configuration. Pre-pandemic, the carrier also flew from Los Angeles (LAX) to the Argentine capital. Today, American Airlines connects Buenos Aires with New York on a daily basis, and with Miami three times per day.

Aerolineas Argentinas Airbus A330-200

Photo: HMBSoFL Photography | Shutterstock

The airline faces competition on its New York route from Delta Air Lines and Aerolíneas Argentinas, and on its Miami route from Aerolíneas Argentinas. The Argentine flag carrier flies its 272-seater Airbus A330-200s on the route, of which there are currently ten in its fleet, according to ch-aviation, with an average age of 12.9 years old. Other long-haul routes operated by the airline from Buenos Aires include Madrid (MAD), Punta Cana (PUJ), Cancún (CUN), and Havana (HAV).

American Airlines Boeing 787

Photo: Greg K__ca | Shutterstock

Last year, Aerolíneas Argentinas returned to profit and carried more passengers than ever before (a total of 16 million) – it remains to be seen what impact the peso’s devaluation will have on the SkyTeam member. Since assuming office on December 10th, President Milei has so far spoken out in favor of Argentina’s aviation industry, with plans to implement an Open Skies policy and privatize Aerolíneas Argentinas.

You might also like: How Would The Proposed Privatization Of Aerolineas Argentinas Change South American Aviation?

What do you make of American Airlines’ decision to stop accepting the Argentine peso? Do you think other carriers will follow suit? Share your thoughts by commenting below.

  • American Airlines Tile

    American Airlines

    IATA/ICAO Code:
    AA/AAL

    Airline Type:
    Full Service Carrier

    Hub(s):
    Charlotte Douglas International Airport, Chicago O’Hare International Airport, Dallas/Fort Worth International Airport, Los Angeles International Airport, Miami International Airport, New York JFK Airport, LaGuardia Airport, Philadelphia International Airport, Phoenix Sky Harbor International Airport

    Year Founded:
    1926

    Alliance:
    oneworld

    CEO:
    Robert Isom

    Country:
    United States

    Airline Group:
    American Airlines Group

    Region:
    North America

    Loyalty Program:
    AAdvantage

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