JetSmart Adds A321neos In Argentina As Market Liberalizes

JetSmart is accelerating its expansion in Argentina by basing three Airbus A321neos in the country, a move that will significantly increase its capacity and allow for the addition of new domestic and international routes.

The Chilean ULCC plans to have added three of the 240-seaters to its Argentinian operation by March, which will help to boost domestic seat capacity by 86% and international capacity by 13% during the first quarter (Q1) of 2025 compared to the same period last year.

Backed by Indigo Partners, JetSmart has steadily grown its presence in Argentina since launching operations there in 2019. The introduction of the three A321neos will increase JetSmart’s fleet in the country to 15 aircraft and make it the first carrier in Argentina to operate the largest member of Airbus' latest-generation narrowbody family.

The expansion comes as Argentinian President Javier Milei pushes for sweeping liberalization of the aviation sector, including the proposed privatization of state-owned Aerolíneas Argentinas and the deregulation of domestic airfares. His administration has also signed several new open skies agreements in recent months, including with the Dominican Republic, Ethiopia, Mexico and Turkey.

Speaking at Routes Americas 2025 in Nassau, Bahamas, JetSmart executive Victor Mejía welcomed the regulatory changes. “This is something we have been waiting for,” the chief commercial officer said. “Argentina is a real focus for growth for us right now.”

JetSmart is using its expanded fleet to capitalize on growing demand for low-cost air travel in Argentina, where it competes against Aerolíneas Argentinas and Flybondi. According to OAG Schedules Analyser data, the carrier has increased its capacity share on domestic routes to 17.8% during Q1 of 2025, up from 10.5% a year ago. Similarly, its capacity share on international routes has risen from 4.2% to 6.5% over the same time period.

In April, the ULCC intends to further expand its network within Argentina by adding new domestic routes from Buenos Aires Aeroparque to Resistencia and Trelew, while also increasing international frequencies to Asunción, Paraguay, with a fifth weekly flight. 

“The market has become more dynamic,” Mejía said. “The rules of the game are competitive, and they force us to compete and fly.”

However, Mejía acknowledged that Argentina’s often changing political landscape remains a factor in long-term planning. “We know that when the opportunity comes, we need to be there, but when the tide shifts, we need to adjust,” he added.

Peter Cerda, IATA’s regional vice president for the Americas, acknowledged the huge benefits of Argentina’s deregulation efforts but cautioned that implementing and sustaining these changes presents significant challenges for airlines. “Argentina has probably seen the most dramatic aviation policy shift in the last 15 years,” he said at Routes Americas 2025.

“But it is difficult for airlines to automatically stop one thing and put an airplane somewhere else. When the political pendulum shifts every four years, there’s no guarantee that the current government’s policies will remain in place. It takes two to three years to launch a new route—not just putting planes in the air but navigating regulatory and operational complexities. In this environment, change isn’t easy.”

Francisco Medela, ACI-LAC’s industry affairs director, agreed, but stressed that greater liberalization is essential for the region’s long-term aviation growth. “A liberalized environment won’t necessarily bring new routes overnight, but it creates a more predictable framework for airlines to invest. Stability is key for long-term network planning,” Medela said.

Cerda highlighted that in order for Argentina and the wider Latin American market to fully realize the benefits of aviation liberalization, governments must commit to long-term policies that remain consistent across political cycles.

“The best example is Panama,” he said. “Regardless of what political party is in power, they understand that the canal and air transportation—Copa Airlines—are priorities for the well-being of the country, both financially and socially. You continue to see how much that market has grown, how well it's connected, and how Copa consistently outshines others because it provides more connectivity and gives passengers the freedom to choose.”

Cerda added that Argentina has the potential to follow a similar path, but achieving sustained growth will require more than just deregulation—it will need long-term policy consistency, regulatory clarity and government support for aviation infrastructure.