Turkish aviation shrugs off COVID-19 and a currency crisis
Turkey's currency seems to have been in decline for ever. The Turkish lira (TRY) has lost 89% of its value against the US dollar (USD) over the past 10 years and halved over the past year. However, Turkish aviation continues to fly in the face of its fall in fortune.
Both Turkish Airlines and Pegasus Airlines have significant revenue and costs in hard currencies. Moreover, the weaker TRY makes Turkey a more competitive tourist destination and inbound bookings to the country have doubled since Jan-2022.
Turkey's weekly seat capacity is now at 97% of 2019 seat capacity levels, which is well above the Europe average of 88% in the week of 30-May-2022. Turkish Airlines and Pegasus Airlines are both above 100% of 2019 capacity.
Although currency decline and inflation have dampened the domestic recovery in recent weeks, Turkey's large internal market has increased Turkish aviation's resilience in the COVID-19 crisis.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.