From left, Martín Vallcorba, Uruguay's Economy and Finance Ministry undersecretary; Uruguay's Tourism Minister Pablo Menoni; and Aeropuertos Uruguay CEO Diego Arrosa.
Uruguay has launched a public-private air connectivity fund offering airlines financial incentives for increasing inbound tourism and opening new international routes.
The program, jointly financed by the Tourism Ministry and airport operator Aeropuertos Uruguay, will provide as much as $2.5 million annually to eligible domestic and foreign airlines operating scheduled international services to the country.
Payments will be based on the number of additional foreign tourists carried to Uruguay, with performance assessed every six months against the equivalent period a year earlier. Airlines must submit passenger, route and country-of-origin data to qualify.
Tourism Minister Pablo Menoni said the initiative “rewards growth” by linking public support directly to measurable increases in inbound traffic rather than simply paying airlines to add scheduled capacity.
The program will initially operate for one year and renew automatically for up to four years. Eligible airlines must hold authorization from Uruguay’s National Civil Aviation and Aviation Infrastructure Directorate.
The fund begins as international capacity to Uruguay is expanding. OAG Schedules Analyser data shows airlines are scheduled to provide approximately 774,500 departure seats on international routes from Uruguay during the northern winter 2026-27 season, up 17.9% from about 656,900 a year earlier.
Montevideo Carrasco International Airport accounts for about 689,000 international departure seats, an increase of 15.3%. Capacity from Punta del Este International Airport rises 43.8% to approximately 85,500 seats, reflecting its importance as a seasonal inbound tourism gateway.
Brazil remains Uruguay’s largest international market, with more than 302,000 departure seats during the season, up 26.2% year over year. Argentina ranks second with about 106,600 seats, followed by Spain with 91,900, Panama with 79,700 and Chile with 79,200.
Among the largest increases, JetSmart is adding Montevideo flights to Santiago and Recife, while LATAM Airlines is introducing service to Asuncion. Iberia is adding a limited Montevideo-Barcelona operation alongside its Madrid route, and Arajet is scheduled to serve Punta Cana.
Other new airport pairs include Montevideo-Porto Alegre and Punta del Este flights to Belo Horizonte and Sao Paulo Viracopos.
The incentive program also comes as Uruguay prepares to join a wider effort to liberalize South American aviation. Argentina, Brazil, Chile and Paraguay signed an MOU in July establishing a road map for progressively opening their markets. Uruguay is expected to join once it completes its domestic administrative procedures.
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