Unstable Currency Leads American Airlines To Stop Accepting Pesos In Argentina

American Airlines has stopped accepting Argentine pesos, and its website now lists all prices for flights departing from Argentina in US dollars. The move comes in response to instability in Argentina’s economy and the recent devaluation of the peso.

Economic uncertainty continues

Back in December, Argentina’s new president, Javier Millei, devalued the peso by 50% to combat rampant inflation at the heart of the country’s economic crisis. The recent inflation rate has reached 160%, and as a result, it currently takes about 810 Argentine pesos to buy 1 dollar. President Milay made no secret during his campaign of his desire to close Argentina’s central bank and move toward the US dollar.

Simple Flying has reached out to American Airlines for comment. This is not the first time the airline has stopped accepting Argentine pesos.according to messengerThe airline suspended payments in pesos in 2015 due to exchange rate issues with the US dollar.

Up to 5 flights a day from the US to Buenos Aires

American Airlines flies year-round to Buenos Aires (EZE) from two hubs in New York (JFK) and Miami (MIA), and seasonally from Dallas (DFW). Oneworld member companies deploy Boeing 787 and 777 aircraft on their routes, which, depending on configuration, can carry from 234 to 304 passengers. Before the pandemic, the airline also flew from Los Angeles (LAX) to Argentina’s capital. Currently, American Airlines offers daily flights between Buenos Aires and New York, and three daily flights to Miami.

Photo: HMBSoFL Photo | Shutterstock

The airline faces competition from Delta Air Lines and Argentina Airlines on the New York route, and competition from Argentina Airlines on the Miami route. Argentina’s flag carrier operates 272-seater Airbus A330-200 aircraft on this route, and its fleet currently includes 10 aircraft. channel airlines, the average age is 12.9 years. Other long-haul routes the airline flies from Buenos Aires include Madrid (MAD), Punta Cana (PUJ), Cancun (CUN), and Havana (HAV).

Photo: Greg K__ca | Shutterstock

Last year, Air Argentina returned to profitability and carried more passengers than ever before (16 million in total), but it remains to be seen how the devaluation of the peso will affect SkyTeam members. Since President Milay took office on December 10, he has supported Argentina’s aviation industry, announcing plans to implement an open skies policy and privatize Argentine Airlines.

You may also like: How will the proposed privatization of Air Argentina change the South American airline industry?

What do you think about American Airlines’ decision to stop accepting Argentine pesos? Do you think other carriers will follow? Share your thoughts by commenting below.