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The Rise Continues… TARGET 2023 THE RISE CONTINUES… ANNUAL REPORT 2014 2014 AT A GALANCE AND 2015 TARGETS GLOBAL POSITION TARGET With 108 countries, With 264 destinations, With its 219 Turkish Airlines is Turkish Airlines is international 2023 the largest carrier the 4th largest airline destinations, Turkish worldwide in in regard to flight Airlines is the largest #1 regard to number #4 network around the #1 airline in regard of flying countries. world. to international destinations. With its 32 million With its capacity international (available seats per passengers, Turkish km/mile), Turkish #7 Airlines is 7th largest #13 Airlines is the 13th 2014 2015 Targets airline in the world. largest airline in the world. FLIGHT NETWORK AND OPERATIONAL DEVELOPMENT Total Passengers 63.0 219 INTERNATIONAL, 45 DOMESTIC DESTINATIONS IN 108 COUNTRIES 54.7 million million With the ongoing construction of the New Airport in 10.0% Change in ASK 8.3% Change in RPK Istanbul, Turkey is preparing to become the world’s EUROPE 8.3% Change in Number of Passengers aviation hub. As Turkish Airlines, we continue to rise 103 14.6% Change in Cargo and Mail FAR EAST 18.9% Change in ASK (available for higher targets with Turkey’s most challenging seats per km) NORTH 31 Fleet 20.3% Change in RPK (revenue project. AMERICA passenger kilometers) TURKEY 20.8% Change in Number of 261 293 21.5% Change in ASK 8 Passengers 15.8% Change in Cargo and Mail 45 20.2% Change in RPK 17.9% Change in Number of Being among the first 10 airline companies of the Passengers 18.5% Change in Cargo and Mail world, we’re “flying high” to higher targets. With our MIDDLE EAST 0.3% Change in ASK innovations, investments and matchless services, 4.3% Change in RPK 4.3% Change in Number of we’re decisively flying towards a more challenging 33 Passengers International Flight 23.4% Change in Cargo and Mail future. Destinations 219 227 14.6% Change in ASK AFRICA 12.8% Change in RPK SOUTH 28.2% Change in ASK 11.3% Change in Number of Our plans are ready, and our route has been set. AMERICA 24.8% Change in RPK 42 Passengers 21.6% Change in Number of 15.2% Change in Cargo and Mail 2 Passengers 9.4% Change in Cargo and Target 2023. Mail Global Market Share 1.8% 1.9% ISTANBUL NEW AIRPORT About Istanbul TARGET 2023 New Airport 150 million 2023 PASSENGER TARGET passenger capacity 120 MILLION 271 2023 TURNOVER TARGET aircraft capacity USD 24 BILLION 54.7 6 2023 FLEET TARGET runways 48.3 Istanbul New Airport, scheduled to open and 450> start providing services in 2017, will add a strong 39.0 11.1 momentum to the growth trend in Turkey’s civil 181 32.6 aviation sector that continues for the last 12 years. passenger bridges 9.8 2023 WORLD This giant project that will carry Turkish Airlines 29.1 into future, will also turn Istanbul, which already is 8.2 MARKET SHARE TARGET 5% a natural hub due to its geographical position, into 25.1 261 one of the world’s largest aviation centers. 7.1 22.6 245 5.4 19.6 219 4.5 1.8 196 16.4 4.7 1.6 13.6 174 After becoming the best in Europe, 3.7 1.4 to become the best airline company 11.3 158 1.2 2.8 in the world; to greater success, and 10.0 145 2.3 1.0 towards a future full of pride. 9.7 142 0.9 2.1 134 1.8 0.8 THE RISE 120 0.7 1.6 110 0.7 CONTINUES 102 0.6 100 0.6 0.5 0.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2023 24.2 TOTAL SALES INCREASED BY 29% AND REACHED TL 24.2 BILLION, GROSS OPERATING PROFIT AMOUNTED TO TL 1.359 BILLION, AND NET PROFIT REACHED TL 1.819 BILLION. 18.3 TURKISH AIRLINES REGISTERED A STEADY PROFIT PERFORMANCE OVER THE PAST FIVE YEARS AND ACHIEVED AN EBITDAR MARGIN OF 18.3%. 54.7 IN 2014, TURKISH AIRLINES CARRIED 32 MILLION INTERNATIONAL AND 22.7 MILLION DOMESTIC PASSENGERS, MAKING FOR A TOTAL OF 54.7 MILLION PASSENGERS. With the ongoing construction of the Istanbul New Airport, Turkey is prepared to become a global aviation hub. Together with the most ambitious project in Turkey, in order to reach even greater targets, we will continue our rise. As one of the world’s top-10 airlines, we are aiming high. Through our innovations, investments, and incomparable service, we are flying toward a more ambitious future via our commitments. Our plans are ready, our course is certain. The Goal: 2023. 6 RUNWAY ISTANBUL NEW AIRPORT 150 MILLION PASSENGER CAPACITIES 350 DESTINATIONS 181 NUMBER OF PASSENGER BRIDGES 271 AIRCRAFT PARKING CAPACITY Aim of 2023 One of the most important projects in civil aviation worldwide is coming to life in Istanbul. With the completion of the Istanbul New Airport construction project, which is in progress in Istanbul and is one of the greatest projects in global civil aviation, a new chapter in Turkish civil aviation will commence. Turkish Airlines, which will have a private terminal in this giant creation, aims to serve 135 million passengers with quality service by 2023. The new airport is NEW AIRPORT WITH THE ISTANBUL CAPACITY INCREASED PASSENGER planned to serve approximately 200 million passengers after all its stages are completed. Total Passenger Increase (millions) Aim of 135 54.7 48.3 39.0 32.6 29.1 ‘10 ‘11 ‘12 ‘13 ‘14 2023 261 TOTAL NUMBER OF AIRCRAFT 35 NO. OF AIRCRAFT EXPECTED TO JOIN THE FLEET IN 2015 100 NO. OF WIDE-BODY AIRCRAFT IN THE FLEET 50 BY 2016 NO. OF NARROW-BODY AIRCRAFT NUMBER IN THE FLEET BY 2018 Aim of 2023 By 2023, we will have the world’s largest and most modern fleet globally, with more than 450 aircraft. Turkish Airlines serves a total MODERN & YOUNG FLEET MODERN & YOUNG of 264 flight destinations in 108 countries and operates the most comprehensive network worldwide. Turkish Airlines is continuing to progress with its efficient growth policy, and it targets to grow more vigorously with a planned fleet of more than 450 aircraft by 2023. Fleet Progress Aim of 450 261 233 202 179 153 ‘10 ‘11 ‘12 ‘13 ‘14 2023 108 219 NUMBER OF COUNTRIES INTERNATIONAL FLIGHT DESTINATIONS 45 264 DOMESTIC FLIGHT 18 DESTINATIONS NUMBER OF CITIES NEW DESTINATIONS LAUNCHED IN 2014 Aim of 2023 As the airline with the most comprehensive flight network, we aim to raise our share in the aviation industry to 5%. Turkish Airlines provides flight services to 264 destinations (45 domestic) in 108 countries. The Company’s international destination INCREASING MARKET SHARE STEADILY coverage is greater than any other airline in the world. Having developed an efficient growth policy with its flight network, provided in difficult regions, such as Central, West and North Africa, the Company aims to increase its existing share of 1.8% in the global aviation industry to 5% by 2023. Additionally, the Company is recording more successful growth in regard to cargo transportation each year, and is raising its standing in the transportation market. Market Share Growth (%) Aim of 5.0 1.8 1.6 1.4 1.0 1.2 ‘10 ‘11 ‘12 ‘13 ‘14 2023 4 “BEST AIRLINE IN EUROPE” IN 2011, 2012, 2013, AND 2014 (FOR 4 YEARS CONSECUTIVELY) Aim of 2023 Our aim is to be chosen as the best airline each year, and to become the best airline in the world. With the services provided both before flight, in-flight, and the after flight lounge THE MOST PREFFERED AIRLINE service, Turkish Airlines offers a variety of choices to make passengers pleased through all stages of their experience. As a result, Turkish Airlines is proud to have won the “Best Airline in Europe” award for 4 years consecutively, and with the innovations implemented to make customers feel special, firm advances to become the world’s best. Our catering subsidiary, Do&Co, provides catering services to more than 60 domestic and international airlines, and is awarded each year with high honors. Aim of 2023 Our subsidiaries will contribute to Turkish Airlines’ strength and increase its profitability… With its existing subsidiaries and new subsidiaries planned for the future, the Company aims to serve domestic and international airlines in many fields in addition to Turkish Airlines. Turkish Technic is growing to become a significant HIGH SYNERGIES POWERFUL SUBSIDIARIES CREATE Maintenance and Repair Center in the market. TCI is in quick progress with its production of cabin interior systems, and in providing other airlines with products. TSI, completing the first local aircraft seat production, is also advancing in seat design and manufacturing, as well as spare parts and modifications. Turkish Opet, owner of the largest integrated jet fuel facility, has been the market leader for the past two years. With the new customers in its portfolio, TGS grows further each year. 1.7% 97,197 1.7% DECREASE IN FUEL CONSUMPTION PER ASK 91,197 TON DECREASE IN CARBON EMISSIONS Aim of 2023 Sustainability practices for a better environment, a more livable world, and efficient business SUSTAINABILITY processes… In addition to practices for customers and employees, Turkish Airlines implements projects in order to show its concern for the environment. With ground and flight training programs, the company contributes significantly to many domestic and international institutions to train quality human resources in addition to THY’s personnel. Turkish Airlines manages to keep fuel consumption figures per ASK below the average, and is positioned at a very special point, leaving many of its competitors behind.
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