Financial Overview
The global aviation sector is constantly evolving and is influenced by numerous internal and external factors that impact the financial performance of airlines. Due to economic and political challenges, Turkish Airlines' revenue fluctuated over the past decade, and even experienced a loss of half its revenue as a result of the coronavirus pandemic. However, this figure rebounded in the subsequent years, even peaking at over 18 billion U.S. dollars in 2022, a revenue comparable to its global competitors.Over the period given, the primary source of revenue for the company was derived from flight bookings, which accounted for 77 percent of the revenue generated in 2022. In that year, the annual earnings before interest, taxation, depreciation, amortization, and rentals (EBITDAR) amounted to approximately 5.4 billion U.S. dollars, representing a rise of 44 percent in comparison to the previous year' EBITDAR.
Path to Net Zero Aviation – Where Turkish Airlines Stands?
As an IATA member airline, Turkish Airlines is committed to achieving net-zero emissions by 2050, as set in the Paris Agreement in 2015. The aviation industry is a significant polluter, yet it is also one of the most challenging industries to decarbonize. In 2022, global commercial airlines were projected to emit 671 million metric tons of CO2. The main approach adopted by the airlines to attain the emission targets by 2050 is to enhance the utilization of Sustainable Aviation Fuels (SAF). Therefore, in the forthcoming years, the aviation industry will increasingly require Sustainable Aviation Fuels. In particular, it is estimated that 449 billion liters of SAF will be needed by 2050 to effectively decarbonize the industry.The carbon dioxide emission level of Turkish Airlines in 2022 was around 23 million metric tons, which was 40 percent higher than the previous year's emission level and a new record since 2015. The airline aims to tackle global warming with the latest generation of aircraft and a heavy reliance on the SAF. As of 2022, the average age of the Turkish flag carrier’s fleet was 8.7.
