American Airlines not considering new Brazil or Argentina routes


American Airlines likely will not expand in Argentina or Brazil in the near future. Photo: American Airlines. 

American Airlines likely will not expand in Argentina or Brazil in the near future. Photo: American Airlines. 

American Airlines is not seriously considering adding more destinations in Brazil and Argentina, executives told employees this week in a newsletter. 

American is by far the most powerful U.S. carrier in South America, and its extensive route network there, especially from Miami and Dallas/Fort Worth, has served it well. But currency issues of late in Venezuela and Argentina have been a drag on the company's earnings. 

American was forced earlier this year to slash flights to Venezuela and it estimated in June that it had almost $800 trapped in the country The Argentina problem is not as dire, and American hasn't cut flights to the country. But it has placed some limits on how tickets can be purchased. 

Here's what the American employee newsletter released Thursday says about the future of possible South American growth, specifically to Brazil and Argentina.  One of American's most recent new destinations is Viracopos, Brazil. Los Angeles to Sao Paulo is also another relatively recent route. 

"In the past we’ve looked at Cordoba, and we’ve also looked at other destinations in northern Brazil. However, at this time with the repatriation issues in Argentina and with the capacity issues in Brazil, we are not looking to add new routes. Of course, we will continue to evaluate the market for opportunities."

What do you think? If you ran American, would you add flights in South America? What markets?