Turkish airport operator TAV sets sights on new investments abroad

Turkish airport operator TAV Airports is on a trajectory of growth, expanding its passenger base significantly in the initial half of this year and now casting its gaze toward further opportunities.

The company witnessed an upswing in passenger numbers during the first six months, reaching a total of 24 million passengers, marking a surge of 42%. Notably, domestic passenger figures also surged to 15 million, indicating an 18% rise.

Despite the challenges posed by the ongoing conflict affecting passenger flow from Russia and Ukraine, TAV Airports achieved a revenue of 560 million euros ($612.85 million) within this timeframe.

This success can be attributed to heightened traffic from Europe and the Middle East,bolstered by its international operations and service sector collaborations.

At a recent press conference, TAV Airports’ CEO Serkan Kaptan provided insights into the company’s financial accomplishments and outlined its investment strategy.

Kaptan said, “By the close of 2022, we had not only overcome the pandemic’s financial and operational hurdles but also embarked on a trajectory of expansion. The initial half of this year has seen us sustain this growth, with 64% of our total revenue stemming from our international ventures.”

Announcing an EBITDA of 147 million euros in the first six months of the year, TAV Airports’ year-end EBITDA expectation is between 330 and 360 million euros.

Kaptan said, “There has been a serious increase in traffic at Madinah Airport after Saudi Arabia lifted the Umrah and Hajj restrictions. The flight ban between Russia and Georgia, which has been going on for four years, was lifted in May. The number of tourists from Western Europe to Antalya, Bodrum and Izmir increased significantly. The number of passengers coming to our country from Kazakhstan has also doubled. We have more than compensated for the impact of the Russia-Ukraine war.”

TAV Airports, which has purchased Almaty Airport in the last two years and added it to its portfolio, extended the operation period to 2052 in Antalya and 2050 in Ankara, and increased the average operation period from eight to 30 years.

“We have secured the future of the company by making an important breakthrough during the pandemic period. We expect double-digit growth in traffic, turnover and EBITDA for the next three years. Thus, in 2025, we will reach approximately 1.5 billion euro turnover, 500 million euro EBITDA and more than 110 million passengers,” Kaptan said.

Among the new projects TAV Airports is currently following are Nigeria Lagos Airport, Montenegro’s Podgorica and Tivat airports and Kuwait Airport.

“We expect development in Nigeria and Kuwait this year. We are also closely following Montenegro, where we have been prequalified. As of 2025, we will enter a strong growth path with the completion of investments, increase in traffic, increased contribution of service companies and operational leverage,” he said.

The company CEO noted that by 2040, global passenger traffic is expected to more than double to exceed 19 billion.

“This will bring an airport investment of $2.4 trillion. We know the financial and operational capabilities required for airport projects that can meet various needs in our target regions,” he said.

Private jet traffic on rise

Private plane traffic to Türkiye’s Bodrum, one of the most important tourism centers of the Mediterranean, has been increasing for the last two years.

Compared to 2019, the reference year before the pandemic, the number of passengers passing through the general aviation terminal in the first six months of this year increased by 34%. In the first half of the year, general aviation traffic is 3% higher than last year.

Operating the Milas-Bodrum Airport, TAV Airports offers a service focused on speed and comfort in the 1,240 square meter terminal at the general aviation terminal serving private jets.

Milas-Bodrum Airport General Aviation Terminal hosted 11,800 passengers from Türkiye and abroad in 2019. In 2022, the number of passengers reached 17,300; this year, it is expected to reach approximately 20,000.

The United Arab Emirates, Russia, France and Switzerland citizens took the first place when considering the passengers traveling to this airport via private jets.

There are 36 private jet parking positions at the airport, with an average of 25 daily flights.


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