Turkish Airlines Delays Deliveries
Turkish Airlines has deferred delivery of various Boeing and Airbus aircraft. The airline is coping with low demand for air travel due to a variety of reasons. The main reason is the continued terrorist attacks and threats in Turkey, but the political instability has impacted the top and bottom line of the Turkish airlines as well.
Turkish Airlines slows down narrow body deliveries
Turkish Airlines has slowed down deliveries for at least some of the single-aisle aircraft that it ordered from Airbus and Boeing. The airline has 92 unfilled orders for the Airbus A321neo, and 75 for the Boeing 737 MAX family aircraft. The delivery of 39 aircraft to be delivery between 2018 and 2020 has been deferred.
Financial results
Following the coup d’état and the subsequent political climate and instability has cost the Turkish carrier. The airline booked $644 million in losses for the first 6 months of 2016, versus a profit of $970 million FY 2015. The deferral of deliveries fits the cuts in frequency and the lower passenger growth for the airline.
— — — — — — — — — — — — — — — — — — — — — — — — — — — — — —
Article written by partner:
AeroAnalysis was founded in June 2015 and commenced operation in July 2015. In 2013 AeroAnalysis started publishing its work on investing research platform SeekingAlpha, primarily covering the aerospace industry from a unique angle, combining knowledge about investing and aerospace products into unique write-ups that spark healthy discussions and give meaningful insight to investors.