Can only imagine the sinking feeling in the stomach of thousands of Argentines who purchased cheap flights for their summer holidays to Brazil/ US or elsewhere realising that their vacation just got much more expensive. At least the only requirement to enter Brazil for tourism now is a valid health insurance policy... yay.
Every time something like this happens, demand for travel abroad drops significantly until people can work out ways around it or get comfortable with knowing how much it will actually cost them to travel, and even then it is usually much weaker when it does return while said policies remain in force (combine that with COVID fear and hardship... and the fact that few destinations are open to Argentines...) If you consider that pax. volumes in Brazil are still only around 10% of what they were in JAN, despite having freedom to travel for tourism and having open skies - just imagine what it will look like here if/ when flight activity normalises.
It is another terrible blow for the industry here in the meantime. In my opinion, the best thing most foreign airlines operating to Argentina can do is to simply not operate to Argentina any time soon. Watch and wait it out.
Weak demand + cost uncertainties + labour headaches + currency headaches = big losses.