Argentina is fundamental for its strategy in Latin America

78 years ago, Iberia landed for the first time in Buenos Aires. That one in 1946 was not just any flight: it was the first transatlantic operation of the Spanish company. Today, Iberia is close to operate three flights daily between Madrid and Buenos Aires -as of October 27– and consider that the Argentine market is “a fundamental piece” of its strategy in Latin America.

In 2023 the region was a sales record, And hand in hand with this phenomenon, the company decided to grow in capacity: in 2024 it went from 4.6 to 5.3 million seats available between Latin America and Spain.

“Argentina is among our first routes, and that is why we are encouraged, because of the history and the interest of Argentines for flying to Spain and Europe,” says Marina Colunga, Commercial Director for Latin America at Iberia, who arrived in the country to participate in Aviation Day Argentina, the meeting that brought together leaders of tourism and the continent’s airline industry.

Iberia flies to 18 airports in 16 countries in the region, and the three daily frequencies that will begin soon in our country are already operating in Mexico and Colombia.

The prospects are encouraging and the bet is challenging: a third flight for Argentina means mobilizing two thousand people -coming and going- every day.

The decision is based, among other reasons, on changes detected in the consumption pattern of passengers in post-pandemic times: “Many do not see the trip as an expense but as an investment. There is an appetite for travelingand based on that and other projections, we decided to put this third frequency,” says Colunga.

Will it be a good opportunity to get better rates? “As capacity increases, opportunity to achieve better deals It is real,” says the director. But the key information in this is anticipation, essential to get good prices.

“In this sense – Colunga expands -, we create tariff families for the passenger to choose between three different options. The needs are not the same for everyone; In a family where five travel, perhaps they do not need to check five suitcases. Then you can buy a more restrictive rate for some – and cheaper –, and a broader one for the rest.”

He also highlights that Iberia’s “competitive advantage” is “in the value of what we offer.” And in this she is clear: “We do not aim to be the cheapest airline, but the one that offers the best value fare. The service on board, the food, the experience of customization and years of experience… everything is a competitive advantage.”

The aircraft with which Iberia operates – such as the A350 – are also part of its strength, due to their sustainability: An Iberia plane emits, on average, 17% less carbon footprint than the average for the route between Buenos Aires and Spain.

Sustainability is one of the pillars of the airline, and an aspect in which it is working with “firm and concrete steps.”

“The conversation about sustainability is at different points of development in the different markets where we operate. In Europe it is part of the agenda in a more advanced way than what is seen in Latin America. And since we are a European company, for us it is a key piece of the strategy and we have a commitment (from the IAG group) to have flights with net carbon footprint emissions by 2050”explains Colunga.

Some might consider this a color fact, but she defines it as a “competitive advantage”. The explanation is that, beyond individual travelers, Iberia works and does business with other companies, and it is common, in the corporate environment, for many companies to request emissions data before sitting down to negotiate.

In the strategy linked to sustainability there are critical elements such as sustainable fuel (SAF): Iberia planes are now ready to use it, although there is still little supply worldwide.

The fact of having a renewed fleet, with airplanes that use less fuel – the Airbus 350 reduce fuel use by 35% – and that weigh less, adds other actionssuch as the management of food waste, the use of water, the elimination of plastics on the plane, the use of paper at the airport. Different pieces of a strategy that aim for the same objective.

“Part of sustainability has to do with everything that is generated in the destinations where we operatebecause every plane that travels from point A to point B generates jobs,” explains Colunga.

On the Argentina route, for example, 12,500 jobsbetween direct and indirect. “Sustainability is more than emissions,” says the Commercial Director for Latin America at Iberia.

The aftermath of the pandemic, Colunga assures, is a separate chapter, since it brought several changes in the behavior of travelers, and also in the company’s decisions.

Part of the positioning strategy of the Spanish company, and its growth in Latin America, has been the Iberia Plus loyalty program. And once again, the Argentine market supports: between January and July 2024 the program recorded more than 27,000 registrationswhich represents a growth of 12%.

Another trend is the blazer (business+leisure), which are business trips combined with vacations. In the reactivation of this type of trip, many choose to extend their stay to take advantage of a few days of pleasure, and others decide to share the trip with someone (family, friends).

Partly for this, and also as a way of enhance the Hub in MadridIberia relaunched the stopover: the possibility of staying in Madrid for a few days, as part of a flight to another destination, without paying more for it. Although the stopover concept is not new, it is working phenomenally for Iberia, especially in the Argentine market: 10 percent of all stopovers contracted in Iberia are from Argentina.

It is clear that Argentines know Iberia. No one hesitates to answer where that company is taking you. “He link with Madrid is natural and it is a definitive strength. I think the opportunity comes in relation to the fact that at this moment our Madrid Hub has grown a lot; We connect with Iberia flights to 142 destinations; and adding the allied airlines, to 383 destinations,” explains Colunga.

And he adds: “Where we have an opportunity is to take advantage of the strong positioning that the brand has to fly to Europe and strengthen ourselves as an alternative to flyingFor example, to Tokyo, which is a new flight that we will also operate from October 27. “When someone thinks about going to Japan, they know that Iberia is coming.”

The numbers seem to support this plan: 40% of people who fly with Iberia continue beyond Madrid.