MAY 10TH, 2016

Turkish Airlines recorded 2 billion 188 million USD of sales revenue in the first quarter of 2016

According to the consolidated financial statements reported to Borsa Istanbul, Turkish Airlines recorded 2 billion 188 million USD of sales revenue in the first quarter of 2016, down 1 percent compared to previous year. The political and economic instabilities over its operating environment and increasing perceived global and regional risks in Turkey and Europe have negative impact on aviation demand and placed additional pressure on yields on a seasonally low quarter. On the other hand, low fuel prices imply increased market capacity and increased competition also reflecting on ticket prices and total revenue. As a result of such factors, Turkish Airlines recorded 214 million USD loss from its main operations in the first quarter of 2016 (17 million USD profit in Q12015)

In the first quarter of 2016, Turkish Airlines realized a capacity growth of 19 percent (available seat km) despite the competitive environment and the geopolitical instabilities effecting direct traffic into Turkey and Europe. Having one of the largest networks in the world and its ability to reach secondary cities, Turkish Airlines have been able to actively manage its capacity to position more capacity on higher network contributor routes and hence recorded 10 percent increase in passenger numbers despite the lower direct traffic, increasing transfer passenger count by 22 percent. Turkish Airlines carried 14.2 million passengers on its 108 thousand flights with a load factor of 74 percent in the first quarter of 2016.

Launching new routes such as Atlanta, Panama, Bogotá Turkish Airlines flies to 49 domestic and 238 international, a total of 284 destinations in 115 countries. One of the youngest airline fleets in the world Turkish Airlines now operates 315 aircraft comprising 80 wide body, 224 narrow body and 11 cargo aircraft.

Within its long term growth strategy Turkish Airlines aims to realize its potential rising from Istanbul’s geographical advantage as a natural aviation hub implying a fleet size of 500 aircraft and over 3 percent global market share. In this context, Turkish Airlines is taking delivery of 43 aircraft in 2016 and will have reached a market share of 2.1% by the end of the year becoming the 10th largest airline in the world.

Turkish Airlines, the biggest exporter of Turkey, holds its cash generation guidance of 20-22 percent EBITDAR margin for 2016 and will continue to manage its healthy and profitable growth.