Will Latam Airlines Return to Argentina's Domestic Skies After New License?

December 27, 2025 at 09:30 AM•2 min read

Latam Airlines received a full license from Argentina's Milei government to operate domestic flights, signaling a potential return to the market it exited in 2020.

Key Points

1Latam Airlines received full 'ninth freedom' rights to operate domestic flights in Argentina without a local subsidiary.
2The license is a core component of President Milei’s 'Open Skies' policy, aiming to end state-protected monopolies.
3Latam Argentina exited the market in 2020, holding approximately 20% market share at the time.
4The airline stated that an immediate return to the Argentine domestic market is not imminent, pending commercial conditions.

Argentina’s government has granted Latam Airlines a full license to operate domestic flights within the country. This move is a key part of President Javier Milei's broader Argentina Open Skies policies aimed at liberalizing the aviation sector.

The new regulatory framework allows the Chilean-Brazilian carrier to compete directly with existing airlines. The license was formalized through Transport Secretariat Provisions 46/2025 and 47/2025.

Regulatory Shift and Freedom Rights

This regulatory change grants Latam broad “ninth freedom” rights. This rare privilege, also called full cabotage, allows a foreign airline to operate flights between two points within Argentine territory. The airline can do this without needing to establish a local subsidiary.

Latam is now permitted to transport passengers and cargo on regular and non-regular domestic routes. The new rules impose no restrictions on flight frequencies, destinations, or aircraft size. This flexibility allows the carrier to deploy aircraft from its fleet, which includes models from manufacturers like Airbus. Provision 47/2025 also mentions a strategic “fifth freedom” route. This route connects Santiago with Buenos Aires and continues to Rio de Janeiro. Fifth freedom rights allow the airline to pick up passengers in the Argentine capital and fly them onward to Brazil.

Under the new rules, Latam has met all legal requirements under bilateral treaties signed between 1996 and 2024. This lifts bureaucratic hurdles, meaning the airline will not need new clearances for each new route.

Market Impact and Latam's Stance

This decision by the Milei government aviation sector is seen as ending state-protected monopolies. It significantly increases competition for carriers like state-owned Aerolíneas Argentinas and low-cost rivals Flybondi and Jetsmart. The International Air Transport Association (IATA) defines these freedom rights as crucial for global air service expansion.

Latam Airlines previously held a significant Latam return to Argentine market share. The former Latam Argentina subsidiary folded in 2020, citing an unviable economic and regulatory climate. At the time of its exit, the carrier held about a 20% share of the local domestic market.

Despite the legal approval, Latam issued a statement confirming that an immediate Latam Airlines Argentina domestic flights comeback is not planned. The airline noted that a return will depend on improved commercial and economic conditions. The path is now clear for a rentrée, should market factors align. This development is a major story in commercial aviation news and can be followed on sites like flying.flights.