Fast-growing airline posts much deeper Q1 loss
A first quarter loss at fast-growing Turkish Airlines was much worse than expected despite rising sales, the news agency Reuters reports. Turkey’s flag carrier is fighting tough competition from low-cost competitors.
The net loss for the quarter widened to TRY226.3 million (€80 million), ten times the loss of a year ago. Yet sales rose to TRY5.13 billion from TRY3.59 billion year-on-year.
Growing low-cost competition comes from carriers such as Pegasus, Onur Air, Atlas Jet and IzAir, all of which serve domestic routes within Turkey or, in some cases, short-haul routes abroad.
“Competition with Pegasus [in Istanbul] has a major negative impact on its domestic services while competition on European routes hits its international revenues,” aviation expert Efe Kalkandelen said.
[pictured: Turkish Airlines Boeing 737-800; courtesy Turkish Airlines]