Santiago-based low cost carrier Jetsmart SpA will “undoubtedly study its options” after losing all nine of its Santiago-Lima weekly flight slots in a competitive bidding process this week, Chief Executive Officer Estuardo Ortiz said.

Chile’s civil aviation authority on Monday auctioned 13 so-called frequencies, with Latam Airlines presenting the highest bid for 10 and three going to rival Sky Airline, according to Diario Financiero. Nine had been previously operated by Jetsmart. 

Ortiz didn’t specify what other options the company may have. “It’s a shame because it will lead to lower competition and affect consumers,” Ortiz said at an interview on the sidelines of the Alta Airline Leaders Forum. Jetsmart had filed a complaint with Chile’s antitrust court requesting a suspension of the auction but that request was rejected.

Still, Jetsmart’s outlook is very positive as demand for domestic flights in South America has practically recovered to pre-pandemic levels, Ortiz said. “We expect passenger traffic to grow 56% in October from a year before,” he said.

Jetsmart plans to receive six more Airbus 320neo aircraft by the end of the year, Ortiz said. Jetsmart provides domestic flights in Chile, Argentina and Peru and international flights to Colombia, Brazil and Uruguay.

The company is also awaiting more guidance from Pratt & Whitney to determine whether its planes are among those affected by its trouble-ridden engines, which have led to some airlines grounding planes, Ortiz said.