Turkish Airlines plans to almost double its fleet and passenger capacity over the next ten years. In its vision that was outlined on April 13, the carrier says it wants to have a fleet of over 800 aircraft in 2033, up from the current 435. The number of passengers carried should double to 170 million. Turkish Airlines wants to double in size in ten years’ time.
2033 will be the 100th year since Turkish Airlines was founded. The airline has already seen tremendous growth in the past decade, helped by an aggressive growth strategy and the opening of the new Istanbul airport. During the Covid-crisis, Turkish was one of the most active airlines. It ended 2022 with a net profit of $2.7 billion, although this included $2.2 billion in deferred tax liabilities.
The 10-year strategy plan set the following targets for 2033. Turkish wants to achieve consolidated revenues of over $52.2 billion, up from $18.2 billion in 2022. It wants an EBITDAR margin of between 20 and 25 percent during 2023-2033. Last year, this margin was 29.2 percent.
Already forced to review its operations to cut costs and improve efficiency, the strategy includes a further improvement of efficiency, “maintaining cost discipline and creating new opportunities to generate additional revenues in order to sustain our strong financial performance.”
The fleet should get to 813 aircraft by 2033, which should help grow the passenger network to 400 destinations up from 350 this year, of which 345 international versus the current 295. Passenger capacity should double by an average growth rate of seven percent, getting the number of passengers carried from 85 to 171 million over the next ten years. Turkish Airlines also wants to grow its share in the cargo market, “doubling the transported cargo volume (from 1.6 to 3.9 million tonnes) and positioning Turkish Cargo among the top three cargo carriers globally by 2033.”
The fleet plan to 800+ aircraft. (Turkish Airlines)
On the list is also improving customer experience and brand recognition by offering a customized service across all service channels, the completing the cabin transformation plan to enhance the in-flight experience. The Miles & Smiles loyalty program should grow in size and active members. This should get Turkish to a top 3 ranking among airlines in providing the best digital experience by implementing new projects in digital transformation.
From 75.000 employees, Turkish and its subsidiaries want to double in size to 150.000 employees. But it intends to establish its low-cost subsidiary AnadoluJet as a separate subsidiary, reposition its brand, and restructure its revenue and cost structures. The airline should grow the fleet to 200 new generation aircraft from the current 72, making it even more of a direct competitor to the other Turkish low-cost airline Pegasus.
Sustainability is also part of the strategy plan by increasing the number of new generation aircraft in the fleet, purchasing more sustainable aviation fuel (SAF), and expanding the number of LEED-certified buildings to boost renewable energy usage. Turkish wants to become carbon neutral by 2050 through the implementation of carbon emission offsetting projects.
Active as a journalist since 1987, with a background in newspapers, magazines, and a regional news station, Richard has been covering commercial aviation on a freelance basis since late 2016.
In 2022, he has gone full-time freelance. Richard has been contributing to AirInsight since December 2018. He is also writing for Airliner World and Aviation News and until July 1 2023 in a part-time role with Dutch website and magazine Luchtvaartnieuws. Twitter: @rschuur_aero.