Impact of India-Pakistan Tensions on Turkish Airlines
In the past month, Turkish Airlines has experienced a dramatic drop of 10% in its share price, largely influenced by the ongoing tensions between India and Pakistan. The conflict has led to significant consequences for Turkey’s tourism sector, particularly as many Indian travelers are reconsidering their plans to visit.
Following India’s military operation called Operation Sindoor against terrorist installations within Pakistan and Pakistan-occupied Kashmir, Turkey has publicly sided with Pakistan. This support seems to have deterred Indian tourists, who make up a significant portion of Turkey’s visitors.
Travel services company MakeMyTrip reported that flight bookings to Turkey have decreased by 60% within the last week, while cancellations skyrocketed by 250%. This trend underscores how Turkey’s political stance is affecting Indian travelers’ decisions.
According to Nishant Pitti, the founder of EaseMyTrip, over 287,000 Indian tourists visited Turkey in 2023, marking a 25% increase from the previous year. He estimated that each Indian tourist spends between $1,200 and $1,500 during their visit. Overall, it’s projected that Indian tourists might spend around $350–400 million in Turkey this year.
Due to these recent events, shares of Turkish Airlines fell from 312.75 Turkish Lira to 280 Turkish Lira, indicating a loss of approximately 10.47%. Avinash Gorakshkar, Head of Research at Profitmart Securities, noted that the drop in share price is linked to the sharp decline in bookings and rising cancellations from Indian travelers. He anticipates that the airline may face ongoing challenges in the upcoming quarters.
Market analysts also suggest that the stock could continue to decline, especially after the release of quarterly financial results. Anshul Jain, Head of Research at Lakshmishree Investments, observed a bearish trend in the stock’s performance, indicating potential further losses if the share price drops below critical support levels.
In summary, the current geopolitical situation is hurting Turkish Airlines and Turkey’s tourism industry, impacting both businesses and travelers alike.
