Turkish Airlines’ net profit surpasses $1 billion for first time in history
According to consolidated financial statements Borsa Istanbul received from Turkish Airlines (THY), the profits of Europe’s leading carrier exceeded $1 billion for the first time in 2015, and net profit was declared at $1.069 billion. Operating profits were $895 million. When assessed in Turkish lira, net profits increased more than 65 percent compared to 2014, to reach TL 2.9 billion ($984.27 million). Operating profits rose more than 72 percent to reach TL 2.5 billion. Sales revenue in 2015 increased 19 percent to TL 28.8 billion.
President of THY’s executive committee, İlker Aycı, said that 2015 was a very fruitful year for Turkish Airlines. Ayci said, “[As proven] through its financial statements, Turkish Airlines has preserved its place among the most profitable carrier companies in 2015, despite the intense competition in the sector, the political and economic instabilities experienced in the region, and the currency fluctuations directly affecting the sector.”
THY’s success story became a case study at the Harvard Business School (HBS) in February. The case study, called “Turkish Airlines: Widen Your World,” explored the company’s transformation from a regional actor into a global powerhouse in the international aviation industry, and discussed its fast and profitable growth in the sector.
THY Deputy Chair and CEO Temel Kotil visited HBS in Boston in the beginning of February to speak to a class of second year MBA students.
“Ten years ago, Turkish Airlines was considered a regional airline. Today, we are one of the industry’s largest carriers, serving 287 worldwide destinations to business and leisure travelers. We offer the largest number of countries and international destination choices to our passengers,” Kotil told HBS students.
Kotil, considered the best CEO in Turkey by the Harvard Business Review Turkey, continued: “We went from national carrier to a global airline serving 113 countries in a short period of time, and I’m truly honored to have had the opportunity to share our success story, our journey with these brilliant young minds at Harvard.”
“Forecasts for the sector predict approximately 7 percent passenger and capacity growth in 2016. Turkish Airlines plans to achieve 21 percent capacity and 18 percent passenger growth in 2016,” a case study authored by HBS Professor Juan Alcacer and HBS Istanbul Research Center’s Executive Director Esel Çekin said.
“Anticipated passenger traffic passing through Istanbul from Europe to the Middle East and Asia and from North America to the Middle East will triple in the next 20 years. Given this potential, Turkish Airlines expects continued growth over that period.”