A report from the Institute of Economic Research of the Stock Exchange showed that Argentina continues to lead the ranking of the most expensive domestic and international flights in South America.
The main reasons why the prices of neighboring countries in which domestic flights They are minors, it is because in Argentina “high operating costs of Aerolíneas Argentinas and, furthermore, it is the second country in South America with higher tax burden on tickets“. If airlines are taken into account low costThese are more competitive with the regional market, but they also have a high tax burden.
On the other hand, on the international stage, traveling around the world from Argentina prices double (compared to Ecuador and Colombia) or triple (Chile, Peru or Brazil) compared to South American countries. The cause is due to the amount of taxes and fees that passengers pay per fare.
The causes of the high costs in Argentina of the domestic flights are explained based on two causes: One of them is the lack of competition and market concentration. “Last year, Aerolíneas Argentinas had more than six times as many flights as JetSMART, the one that followed it in the ranking. In the first half of 2023, the state company registered 4.6 times more flights than Flybondi.” In addition, the effect of cross-subsidies due to the flag carrier’s aviation policy is added: “to cover the cost of traveling to destinations with little demand, you must transfer them to the price of the most demanded destinations (as is the case of the Buenos Aires route – Cordoba). indicates the report.
Fees and taxes on the actual price of the flight: aviation security fee, airport fee, security fee, VAT and provincial charges. To these must be added that the flag carrier now charges a “fee” for issuing via the web
the tickets.
The extra charges to the flights contract with the countries of the region since Peru or Colombia only count
with two additional charges: VAT or sales taxes, and the airport or shipping tax. Or even, Chile and Brazil do not apply taxes and only the airport or boarding tax is charged to the airfare.
It is already expensive to travel within Argentina, but it is even more so do it to the outside Since the prices, in addition to the taxes and fees charged by the destination country, the national government adds: aviation security fee, airport fee, security fee, immigration fee and tourism tax (ticket fee) , to which are added for paying the PAIS Tax in pesos, the advances corresponding to the Income Tax (Perception RG 4815) and, when they exceed 300 dollars a month for consumption, the advances corresponding to the Personal Assets Tax (Perception GR 5272).