As one of the fastest recovering airlines in the sector, Turkish Airlines contributed to its short-term cash management planning by reducing its financing requirement of USD 7 billion for the 2021-2023 period as a result of negotiations with aircraft manufacturers related to the aircraft delivery schedule during the pandemic. Turkish Airlines also reduced its budget for advertising and marketing activities. According to the hygiene rules brought about by the new normal state of affairs, Turkish Airlines simplified its in-flight catering, received discounts on airport payments, and postponed its payments. The company benefited from government support for tax payments. As a result of these various measures, Turkish Airlines achieved total savings of USD 1.1 billion in operational and fixed costs in 2020 and USD 700 million in 2021.
While airlines across the industry reduced their staff numbers and received a total of USD 243 billion in state support during the pandemic, Turkish Airlines successfully navigated through the crisis with its own resources. During a time when many airlines announced billions of US dollars in losses despite receiving state support, Turkish Airlines maintained its cash assets at the highest level by capitalizing on its own resources without receiving direct financial state support thanks to strict financial discipline. From day one, Turkish Airlines maintained its liquidity at pre-pandemic levels through effective cost control.
FROM BOUTIQUE AIRLINE TO THE TOP IN 20 YEARS
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