Company Overcomes Headwinds to Report Strong Performance in Q2 2026
The company has released its second quarter earnings report for 2026, showcasing a strong performance despite facing several headwinds. According to CEO Martín Eurnekian, the adjusted EBITDA ex IFRIC 12 was down 4.5% primarily due to the cargo business in Argentina being affected by an extraordinarily bad year-over-year comparison base, lower seat capacity in the domestic market in Argentina, and non-recurring costs and expenses in Uruguay.
However, the company's diversified portfolio continues to support its overall performance, with four of its six segments delivering double-digit EBITDA growth. The CEO noted that healthy international demand and passenger growth were observed across most markets in the second quarter, while revenue per passenger improved throughout the portfolio, including Argentina.
The financial position remains strong, supported by healthy liquidity, continued cash generation, and low leverage. This gives the company the capacity to invest in existing operations, pursue its acquisition strategy, and return capital to shareholders while preserving financial flexibility. In fact, the board approved a cash dividend distribution for 2026, representing an important milestone in the company's capital allocation strategy.
Traffic trends across markets showed that total passenger traffic remained broadly stable year-over-year at approximately 21 million passengers during the quarter. International traffic increased nearly 6%, with double-digit growth in Armenia and positive contributions across the board, including Argentina. Domestic traffic declined approximately 8% primarily due to lower seat capacity in Argentina.
Looking at individual markets, Argentina recorded a 4% increase in international traffic supported by strong seat capacity growth during April and May, while overall passenger traffic declined around 6%. The country also experienced the strongest increase in international seat capacity among South American markets during the first half of the year. Italy saw an increase in total traffic just over 5%, driven mainly by international passengers, which grew 6.4%.
Despite these challenges, the company remains confident in its ability to deliver strong performance moving forward. The CEO highlighted that the company's diversified portfolio and financial position provide a solid foundation for future growth. As the global aviation market continues to evolve, the company is well-positioned to take advantage of emerging opportunities and continue to drive long-term value creation.
