Turkish Airlines (THY) holds a significant position within both the domestic and international transportation networks. Renowned as a global brand, THY distinguishes itself through its substantial revenue, contribution to foreign currency inflow, exceptional service quality, extensive reach across numerous countries, and a commendable management approach.
Turkish Airlines from 2020 – 2023
As of 2022, THY ranks as the 9th airline globally in terms of passenger carriage, a testament to its success. In preparation for heightened competition with international giants, Turkish Airlines is gearing up for new aircraft acquisitions, underscoring its commitment to maintaining a prominent position in the aviation industry.
Despite the severe downturn faced by global airline transportation in 2020, leading to significant revenue losses, the sector has shown impressive signs of recovery since mid-2021. During this period, THY not only fortified its standing in global airline transportation but also ascended to higher echelons through strategic measures and prudent investments.
As one of Turkey's most accomplished companies, Turkish Airlines continues to navigate the aviation landscape with resilience and success.
A Global Brand: Turkish Airlines
Forbes reports that Turkish Airlines (THY) currently holds the 8th position globally among airline companies when considering total value, profit, and assets. In 2023, THY achieved a valuation of $20 billion, a profit of $2.8 billion, and total assets amounting to $32 billion, surpassing counterparts from countries like China and Canada.
Despite having a workforce of over 40 thousand employees, which is comparatively fewer than some other airlines, THY has excelled in delivering higher income and service quality. A notable illustration of THY's success is evident when contrasting it with other airlines. For instance, Air Canada, the 10th largest airline globally, reported a loss of $1.31 billion despite employing 43 thousand individuals. Similarly, China Southern Airlines, ranked 9th globally, faced a substantial loss of $4.8 billion while having a workforce of 100 thousand.
THY stands out with a remarkable profitability per employment ratio when compared to many other airlines, particularly in comparison to carriers from developed countries. THY's adept management of assets and impressive profitability rates contribute to its superior performance.
Covering 130 countries worldwide
Covering nearly 130 countries worldwide, THY emerges as one of the airlines with the broadest global reach. Even though Air France, Emirates, and British Airways fall behind THY in terms of the number of countries served, it appears challenging for them to catch up. Additionally, as the second-largest airline in terms of destinations served, THY finds itself in competition with major carriers from countries such as the USA, China, and Canada. The driving force behind THY's success lies in its ability to thrive within the competitive landscape of global aviation.
A Success Story of Turkey: THY
In 2022, Turkey's service exports totalled $90 billion, contributing to a rise in total exports to $254 billion. Turkish Airlines (THY) emerged as the leading exporter, reaching $15.8 billion, surpassing its closest competitor, Ford Automotive, by a considerable margin, as Ford exported $6.3 billion. Turkish Petroleum Refineries followed with $4.1 billion. THY alone accounted for 4.6 percent of total exports, outshining numerous economic sectors in terms of output, profit, and value, underscoring its substantial potential. This dominance is evident as THY exceeded the output of sectors employing millions, even doubling the exports of the mining sector.
In terms of foreign exchange earnings per employment, THY demonstrated a remarkable performance. In 2023, with Turkey's total exports projected to approach $260 billion and service exports to reach $120 billion, THY is poised to maintain its impressive success, reaching an export capacity of $17.5 billion. When evaluating THY's success on a national scale, it outpaces countries such as Paraguay, Lebanon, Georgia, and Kyrgyzstan in terms of exports alone.
In terms of total company value, THY annually generates more economic value than many neighbouring countries. The anticipated expansion of THY's aircraft fleet, coupled with the potential doubling of its export capacity, is expected to significantly contribute to the country's foreign currency reserves. Furthermore, the growth in THY's aircraft fleet is likely to generate additional employment opportunities and elevate airline usage rates in the medium term.
The global transformation of Turkish Airlines 2003 – 2023
The transformation of Turkish Airlines (THY) from carrying 10.4 million passengers with 65 aircraft in service, achieving a $150 million profit, and reaching 103 destinations in 2003 to becoming a global brand is a noteworthy subject deserving academic research and documentation.
The company's remarkable evolution can be attributed, in part, to the increase in the number of airports in Turkey and its management approach characterised by a global vision. Between 2003 and 2013, THY experienced substantial growth, with the total number of passengers escalating from 10.4 million to 48.3 million. Although the profitability level did not exhibit a significant leap during this period, the expansion in the number of destinations soared from 103 in 2003 to 342 in 2022, solidifying THY's status as a global brand. Demonstrating a commendable financial performance, THY recorded a profit in all but two years from 2003 to 2023, surpassing the achievements of many other companies.
Beyond its financial success, THY holds a symbolic value for Turkey's corporate image, flying the Turkish flag to 130 countries and 342 destinations globally. This significance is heightened when considering its role in the tourism sector, contributing significantly to the $54 billion tourism income anticipated for Turkey in 2023. THY's service quality and flights play a crucial role in this thriving sector.
Operating flights to 39 countries, 60 cities, and 60 airports in Africa, THY plays a pivotal role in Turkey's African vision. The airline significantly contributes to Turkey-Africa relations by strengthening the continent's global connections, increasing transportation and trade volume, and fostering cultural rapprochement. Presently, THY's flights have a substantial impact on the trade volume between Africa and Turkey, reaching $30 billion. As a global brand, THY undeniably plays a key role in the recognition of Turkish companies, contracting services, and tourism, both within the continent and worldwide.
The company's global success can be attributed to several key factors:
- Consistent public support and an accessible airline service policy
- Embracement of a company policy with a global vision
- Enhancement of the national airline infrastructure
- A steadfast commitment to maintaining a service quality-focused approach
- Implementation of a quality human resources policy
- Active engagement in global competition and adherence to a competitive service policy by Turkish Airlines
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