THY looking at acquisition opportunities in Asia, South America

Turkish Airlines (THY) is exploring potential acquisition opportunities across Asia and South America as part of its broader strategy to expand its global presence, according to a senior executive. The announcement comes amid ongoing efforts to strengthen its position in international aviation markets. Murat Şeker, chairman of Turkish Airlines, stated during a recent interview with Bloomberg TV that the company’s focus will shift increasingly toward regions outside of Europe and the Middle East. The national carrier made headlines earlier this year when it finalized a deal to acquire a minority stake in Spain’s Air Europa in August. Şeker called this agreement “a key step” in the company’s growth trajectory, suggesting that similar strategic investments could follow in Asia and Latin America. These regions represent untapped markets with growing demand for air travel, particularly as global connectivity continues to evolve. Şeker outlined the company’s current ambitions, stating that Turkish Airlines now has “a bigger horizon in Asia, the Far East, in Europe and in Latin America.” This expansion aligns with the airline’s existing partnerships, such as its collaboration with Germany’s Lufthansa in the leisure-focused SunExpress brand. The partnership has allowed Turkish Airlines to tap into European vacation markets while maintaining a distinct identity in the regional aviation sector. Market dynamics have played a role in shaping the airline’s strategy. Şeker noted that demand levels have largely returned to pre-pandemic norms after a temporary surge linked to the Iran war. During that period, airspace closures in the Middle East and a general reluctance among passengers to fly over the Gulf led to increased traffic through Turkish Airlines’ routes. However, as regional airlines have resumed more standard operations, passenger numbers have stabilized. The geopolitical situation also impacted fuel prices, with the closure of the Strait of Hormuz during the conflict disrupting jet fuel supply chains. This caused a spike in operating costs for many carriers, including Turkish Airlines. Now that these disruptions have eased, the company is better positioned to pursue new ventures without being constrained by rising expenses. In addition to its geographic expansion, Turkish Airlines is working to finalize agreements with CFM International, a leading aircraft engine manufacturer. Şeker expressed confidence that these discussions would reach a resolution soon. The airline currently holds orders for nearly 420 aircraft, encompassing both Airbus and Boeing models, with further negotiations underway for an additional 100 Boeing planes. Looking ahead, Turkish Airlines aims to enhance its long-haul capabilities by introducing ultra-long-range aircraft starting in late 2027. These new planes will enable the carrier to offer direct flights to destinations in Australia and South America, significantly broadening its route network. This initiative is part of the airline’s 2033 strategy, which includes replacing and expanding its fleet to approximately 800 aircraft. As of the end of May, Turkish Airlines operated a fleet of 542 planes, serving more countries than nearly any other carrier globally. With its sights set on continued growth, the airline is positioning itself to meet increasing demand while adapting to evolving industry challenges. The company’s latest moves suggest a commitment to diversification and long-term sustainability in international aviation.