Turkish Airlines plans to save $250M this year

Published 23.08.2016 22:53

Turkish Airlines (THY) Board and Executive Committee Chairman İlker Aycı said the company has revised its budget for 2016 to save $250 million, cutting down on expenditures, adding that it will also take proactive measures against the problems arising from security concerns in different geographic locations, particularly Europe.

Despite the 10 percent increase in its total assets, THY closed the first half of the year with $411 million in losses. In addition to slow global growth, due to the terror attack at Istanbul's Atatürk Airport in late June and a failed coup attempt on July 15, THY experienced an exceptional year, and according to news by Dünya daily, it is getting ready to take steps aiming to minimize the effects of these negative developments on the success of the company.

Regarding the issue, stressing that THY has not made any changes on its long-term goals, Aycı said they have been working hard to compensate the losses in the second half of the year.

In this respect, Aycı reminded that on Monday they announced the revised budget for 2016, underlining their focus is to expend $250 million in the revised budget. Aycı said the targeted saving will be achieved not through diminishing the expenditures allocated for revenue creating resources, but through more efficient and careful planning both in operations such as the frequency of flights and expenditures such as reparation and technical services for its aircraft, fuel oil and marketing and advertising.

In addition to these measures, Aycı also said the fact that U.S.-based credit rating agency Moody's reduced THY's note to Ba2 with a negative outlook in July will have a negligible effect on THY on the financial side of things. Aycı stressed that THY can easily find funds when necessary, and it currently does not ne ed large amounts of financing sources, adding that in the future, the company may benefit from different financial instruments. Moreover, Aycı announced that THY is planning to meet with groups of investors in important financial centers like London and New York in the upcoming weeks as well as teleconferences that they will organize with investors.

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