Financial Times Reports on Turkey's Rapid Growth in the Aviation Sector Post-Pandemic, Surpassing European Competitors
Haber Giriş Tarihi: 22.04.2024 12:55
Haber Güncellenme Tarihi: 22.04.2024 12:55
Kaynak:
AirportHaber
According to a report by the renowned Financial Times, Turkey's aviation sector has experienced rapid growth post-pandemic, surpassing its European competitors. The article highlights that Turkish airlines carried 10% more passengers compared to the pre-pandemic year.
Turkey's two largest airlines, Turkish Airlines and Pegasus Airlines, carried 115 million passengers last year, marking a 10% increase compared to 2019, the year before the pandemic, as reported by the globally acclaimed Financial Times. Similarly, the success of Turkish airports in terms of passenger numbers was also emphasized.
According to a report on Habertürk, based on data from the OAG data firm, Istanbul Airport was the busiest airport in the region in terms of flight numbers last year, with Turkish Airlines ranking as the third busiest airline after Ryanair and easyJet.
The rapid expansion of Turkey's aviation sector compared to its competitors has also positioned the country as a dominant player in the European market, according to the report. This growth has been attributed to investments in improved infrastructure and fleets by airlines and airports in the country, as well as the swift recovery of capacity following the pandemic.
Andrew Charlton, an Aviation Advocacy Consultant, commented on the matter, stating, "Turkey is a developing country with a demographic rise that has the potential to become middle class and propel the entire country forward. Therefore, policy adjustments will set sail for growth."
Turkish Airlines increased its Available Seat Kilometer (ASK) value, an important capacity measure for the sector, by approximately 25% last year compared to 2019, while Pegasus also increased its capacity by building its fleet despite the pandemic.
According to the International Air Transport Association (IATA), Available Seat Kilometers (ASK) across the sector shrank by 5.6% during the pandemic, with many carriers laying off staff. Turkish Airlines, after placing orders for over 200 Airbus aircraft in December, plans further expansion. Similarly, Pegasus expects to receive delivery of 68 single-aisle Airbus jets for medium-haul flights over the next five years.
While a second runway recently opened at Istanbul Sabiha Gökçen Airport, expansion works are ongoing in the capital Ankara and the tourism hub of Antalya. Turkey's dominant tourism sector has also been a driving force for the aviation industry. Tourism revenues reached a record $54 billion last year, with expectations to reach $60 billion in 2024 due to a strong increase in foreign visitor numbers, thanks to the weak currency.
According to FactSet data, Turkish Airlines' revenue increased by nearly 14% to $21 billion in 2023, placing it among the top 10 global airlines in terms of sales. Profit before interest, taxes, depreciation, and amortization rose by 11.7% to $5.5 billion.
"REVERSE SITUATION IN EUROPE"
In contrast, Western Europe presents a reverse scenario. Major national airline groups like IAG, Air France-KLM, and Lufthansa continue to operate with more restricted schedules compared to 2019, despite cautiously rebuilding their businesses amid the challenges posed by the pandemic.
Moreover, leading airports face difficulties in expansion due to concerns about noise and pollution's impact on local communities and rising carbon emissions from increased flights. London's Heathrow Airport, after decades of struggles to build a third runway, is now focusing on a scaled-down expansion plan, while the Dutch government pressures to reduce flight numbers at Amsterdam Schiphol.
The Istanbul Airport, an $11 billion international transit hub opened in 2019, boasts a massive terminal approximately the size of 200 football fields. It accommodated around 76 million passengers from Istanbul, slightly below Heathrow's 79 million passengers.
"THIS IS CONCERNING" A European airline executive remarked, "Tighter regulation means you can attract people to areas where there is less regulation," while another executive, who preferred to remain anonymous, stated, "This is concerning. In 2019, when pollution costs were cheaper in the EU, we didn't care as much, but now we're thinking 'oh my God.'"
Despite geopolitical tensions, European airlines are closely monitoring the growth of Turkish airlines and Gulf carriers connecting the East and West through transfers, and this trend is expected to continue, according to analysts.
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A Noteworthy Article from the Financial Times
Financial Times Reports on Turkey's Rapid Growth in the Aviation Sector Post-Pandemic, Surpassing European Competitors
According to a report by the renowned Financial Times, Turkey's aviation sector has experienced rapid growth post-pandemic, surpassing its European competitors. The article highlights that Turkish airlines carried 10% more passengers compared to the pre-pandemic year.
Turkey's two largest airlines, Turkish Airlines and Pegasus Airlines, carried 115 million passengers last year, marking a 10% increase compared to 2019, the year before the pandemic, as reported by the globally acclaimed Financial Times. Similarly, the success of Turkish airports in terms of passenger numbers was also emphasized.
According to a report on Habertürk, based on data from the OAG data firm, Istanbul Airport was the busiest airport in the region in terms of flight numbers last year, with Turkish Airlines ranking as the third busiest airline after Ryanair and easyJet.
The rapid expansion of Turkey's aviation sector compared to its competitors has also positioned the country as a dominant player in the European market, according to the report. This growth has been attributed to investments in improved infrastructure and fleets by airlines and airports in the country, as well as the swift recovery of capacity following the pandemic.
Andrew Charlton, an Aviation Advocacy Consultant, commented on the matter, stating, "Turkey is a developing country with a demographic rise that has the potential to become middle class and propel the entire country forward. Therefore, policy adjustments will set sail for growth."
Turkish Airlines increased its Available Seat Kilometer (ASK) value, an important capacity measure for the sector, by approximately 25% last year compared to 2019, while Pegasus also increased its capacity by building its fleet despite the pandemic.
According to the International Air Transport Association (IATA), Available Seat Kilometers (ASK) across the sector shrank by 5.6% during the pandemic, with many carriers laying off staff. Turkish Airlines, after placing orders for over 200 Airbus aircraft in December, plans further expansion. Similarly, Pegasus expects to receive delivery of 68 single-aisle Airbus jets for medium-haul flights over the next five years.
While a second runway recently opened at Istanbul Sabiha Gökçen Airport, expansion works are ongoing in the capital Ankara and the tourism hub of Antalya. Turkey's dominant tourism sector has also been a driving force for the aviation industry. Tourism revenues reached a record $54 billion last year, with expectations to reach $60 billion in 2024 due to a strong increase in foreign visitor numbers, thanks to the weak currency.
According to FactSet data, Turkish Airlines' revenue increased by nearly 14% to $21 billion in 2023, placing it among the top 10 global airlines in terms of sales. Profit before interest, taxes, depreciation, and amortization rose by 11.7% to $5.5 billion.
"REVERSE SITUATION IN EUROPE"
In contrast, Western Europe presents a reverse scenario. Major national airline groups like IAG, Air France-KLM, and Lufthansa continue to operate with more restricted schedules compared to 2019, despite cautiously rebuilding their businesses amid the challenges posed by the pandemic.
Moreover, leading airports face difficulties in expansion due to concerns about noise and pollution's impact on local communities and rising carbon emissions from increased flights. London's Heathrow Airport, after decades of struggles to build a third runway, is now focusing on a scaled-down expansion plan, while the Dutch government pressures to reduce flight numbers at Amsterdam Schiphol.
The Istanbul Airport, an $11 billion international transit hub opened in 2019, boasts a massive terminal approximately the size of 200 football fields. It accommodated around 76 million passengers from Istanbul, slightly below Heathrow's 79 million passengers.
"THIS IS CONCERNING" A European airline executive remarked, "Tighter regulation means you can attract people to areas where there is less regulation," while another executive, who preferred to remain anonymous, stated, "This is concerning. In 2019, when pollution costs were cheaper in the EU, we didn't care as much, but now we're thinking 'oh my God.'"
Despite geopolitical tensions, European airlines are closely monitoring the growth of Turkish airlines and Gulf carriers connecting the East and West through transfers, and this trend is expected to continue, according to analysts.
Kaynak: AirportHaber
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