Turkish Airlines - Strong growth hits a wall as security and political events take a toll, but opportunities still remain
Turkish Airlines has in recent years expanded its operations dramatically, emerging from a local airline to a major global player. This growth has been propelled by the strategic location of its Istanbul hub. With Turkey currently constructing a six runway new airport at Istanbul, potential for growth is strong. However political and security concerns still linger and can adversely affect the company, as happened in 2016 when a string of terrorist attacks and an attempted political coup drove the airline into contraction.Key Highlights
Turkish Airlines is one of the success stories of the airlines industry over the past decade, with the company more than doubling the number of destinations it travels to within the span of ten years whilst also increasing its revenue significantly.
However, despite its growth and the potential for more, Turkish Airlines suffered a real shock in 2016 when its revenues fell and the number of tourists travelling to the country also declined significantly.
Potential for further growth is very real, especially as the new Istanbul airport will allow Turkish Airlines to further expand its operations. The Americas particularly is an area with low penetration at the moment. The weakening of the Lira coupled with an increase in the global tourism industry will also serve to attract tourists to Turkey again.
Explains the reasons fur Turkish Airlines growing so strongly over the past decade.
Explores how the company can continue expanding in the coming years.
Analyzes why Turkish Airlines did not grow in 2016 specifically.
Examines further growth possibilities for the airline company as well as the increasing challenges it will face from competitors.
Reasons to buy
Why has Turkish Airlines grown so strongly in recent years?
Why did its revenues decline in 2016 specifically?
What potential for further growth exists for the company?
Which companies serve as the main competitors to Turkish Airlines?