Argentina's government authorized an industry-wide increase in domestic air fares, answering calls by local airlines that prices were outdated and creating market distortions.

The measure seeks to "guarantee appropriate air traffic public service" and "protect the local air market," according to a statement by the government's transport authority agency.

The air-fare increase impacts mainly coach-class tickets and may vary within a price band determined by the government.

With the increase, a round-trip ticket from Buenos Aires to the southern city of San Carlos de Bariloche, a popular tourist destination, now may cost from 748 pesos (USD$196) to up to 1428 pesos (USD$375).

Argentina's airline industry is controlled by Aerolineas Argentinas, a state company that has been posting million of dollars in losses.

The measure will also impact cargo carrier Austral, controlled by Aerolineas Argentinas and Lan Argentina, the local unit of Chilean LAN.