Turkish Airlines targets 72.4 mln passengers, $12 bln sales in 2016

ISTANBUL

REUTERS photo

Turkish Airlines said it expects passenger numbers to reach 72.4 million in 2016 and sales revenues to reach $12.2 billion, in a written statement to the Public Disclosure Platform (KAP) on Jan. 12. 

“The total number of passengers carried is targeted to reach 72.4 million, made up of 30.6 million on scheduled domestic routes, 40.8 million on scheduled international routes, and the rest on charter and hajj flights,” said the company, which carried 61.2 million passengers in 2015. 

By the end of 2016 the overall fleet size is planned to have risen to 339, made up of 240 narrow-body, 87 wide-body, and 12 cargo aircraft, Turkish Airlines stated, adding that with six new routes added, the total number of destinations served will reach 290. 

The company said its target of generating $12.2 billion in sales revenue was based on the assumption of an average 1.1 euro-dollar parity, a 3.14 dollar/lira parity, and average jet fuel (including hedges) of $647 per ton.

While the passenger load factor is expected to be 78 percent, the total Available Seat Kilometers (ASK) is expected to reach 186 billion, an increase of 21 percent compared to 2015, according to the statement. 

The ASK capacity increase is expected to be 11 percent in Turkey, 31 percent in the America region, 27 percent in the Africa region, 23 percent in the Far East region,  17 percent in the Europe region and 17 percent in the Middle East region.

2015 targets revised

International sales originating in Turkey constitute around 15 percent of the company’s total revenue, the statement also added. 

Turkish Airlines closed last year with a total of 61.2 million passengers carried over 12 months, a drop of around 12 percent from the previous year. Its 77.9 percent load factor marked a 1.4 percent drop. 

The national carrier revised down its 2015 forecasts for the year-end passenger number from 63 million to 61.7 million and the load factor estimate from 80.3 percent to around 78 percent last September.

The company also revised down its 2015 revenue target from $12 billion to $11 billion last August amid pressures from the foreign exchange fluctuations. Turkish Airlines has yet to announce its official 2015 revenue figures. 

Meanwhile, back in May 2015, the company announced that its decision to convert international ticket sales originating in Turkey from euros to U.S. dollars had been approved by the International Air Transport Association (IATA). 

“Our decision has been improved by the IATA and has been put into action,” said Turkish Airlines in a separate written statement late on May 26, 2015. 

Turkey’s national flag carrier made this decision due to the sharp fluctuations in foreign exchange rates and the rising price of the dollar, according to sector representatives.