United Airlines has decided to cease operations in Uruguay beginning next June 7 which means the end of the company's flights to Montevideo. However United will continue to operate from Argentina and Brazil.
According to United sources in Montevideo in the coming weeks an official release will explain the company's reasons for abandoning Montevideo. "There are several motives for the drastic decision", but no further details were offered. Industry sources in Montevideo said that although United had a relatively good market position and reputation in Uruguay, (but below that of competitor American Airlines) some of the reasons for ceasing flights are linked to the company's ongoing international financial difficulties and the low profitability of its Montevideo/Chicago route. Most air traffic to United States from Uruguay is to Miami and New York. Local reports indicate that Uruguay Transport officials were surprised by the news. United Airlines must report its decision to the country's Civil Aviation authorities, "which so far has not happened". However at Montevideo's international airport Carrasco, rumors about the company's decision were known "for some time". Montevideo's Carrasco airport traffic has lately grown regionally but has also become an international flights feeder of Sao Paulo and Buenos Aires hubs.