Ultra-low-cost carrier Jetsmart is expanding rapidly in South America. In 2024, the airline carried twice as many passengers as in 2022, but looking at its home market of Chile, development is slower, with a mere 17% growth on domestic routes in the same time frame.

Jetsmart is focusing on international routes from Chile (70% growth from 2022 to 2024) and expansion in foreign markets. For example, Jetsmart commenced operations in Colombia in 2024 and ended the year with eight aircraft stationed there.

On the other hand, looking at Chilean passenger traffic statistics in first two months of 2025, we can see a 17% decline compared to the same period last year (see chart below). The fall is solely attributable to domestic operations as 31% fewer passengers were carried in 2025 to date.

As of February 2025, Jetsmart’s total fleet comprised 44 A320 and A321 aircraft, and it was recently awarded a prize for the youngest fleet, with an average age of 3.2 years. The fleet has grown from just 17 planes in mid-2022, and the plan is to operate 100 aircraft by 2029.

The airline operates domestic routes in Argentina, Peru, and Colombia, in addition to Chile. It also operates international routes to Brazil, Ecuador, Paraguay, and Uruguay, and expansion across the continent will likely continue in the short term. Jetsmart’s statistics show that 15-20% of its passengers travel by air for the first time, suggesting that the airline is truly stimulating the market in South America with its ultra-low-cost offer.

Chilean Home Market Development

Jetsmart was founded in 2017 and gained a 17% market share in the Chilean domestic market by 2021. From 2022, however, when the fleet growth from 17 to 44 aircraft commenced, that share has declined.

LATAM, as the traditional airline in Chile, stepped up and grew strongly after emerging from a restructuring process. The airline carried 13% more domestic passengers in 2024 than in 2019, while both Sky and Jetsmart paused their growth.

This is contrary to the international passenger development, where LATAM has only just recovered to 2019 volumes and Jetsmart continues to increase its market share, now at 11% versus LATAM’s 49% (see chart below).

Jetsmart's Foreign Markets

Outside Chile is where the majority of the new Jetsmart fleet has gone. The Argentinian branch received four A320 aircraft last year, creating a fleet of 12, and three more A321s will be added before June this year.

The Colombian branch only started operating in 2024, and there are now eight aircraft stationed there. The Peru operation commenced in mid-2022 and has also grown to eight aircraft.

Some 80 aircraft are yet to be delivered, to reach a fleet of 100 aircraft by 2029 and 124 when the order is complete. The aim for the Colombian branch is to have 20 aircraft in the short term if airport infrastructure expansion allows, in terms of slots. Jetsmart is particularly looking at international expansion in Colombia, with the United States, Mexico, and the Caribbean all target markets.

With the next new aircraft deliveries in Argentina, and the ambitions for Colombia, it seems the short-term strategy for the airline continues to be international development, whether it is international routes from Chile or expansion of the airline’s international branches.

The Chilean domestic market is therefore expected to see slow growth in the short term, stimulated mainly by LATAM. The 80 new Jetsmart aircraft to be delivered in the next few years can, however, provide capacity to reboot the domestic market in Chile in the mid-term, alongside the rest of the continent.