Turkish Airlines changes direction, no dividend due to geopolitical risks

2026-04-11 08:51:00, Kosova & Bota CNA

Turkish Airlines (THYAO.IS) has carried out a complete management shake-up, replacing its CEO and chairman, while also deciding not to pay dividends from 2025 profits, citing geopolitical instability and increased uncertainty in its operating environment.

The Turkish carrier said Ahmet Olmustur, previously commercial director, has been appointed executive director following the retirement of executive director Bilal Eksi.

In a statement to the Public Disclosure Platform (KAP), Turkish Airlines said Murat Seker was appointed chairman of the board, replacing Ahmet Bolat, who resigned.

The changes come at a time when the global aviation industry faces volatile fuel prices, capacity pressures and ongoing disruptions related to conflicts in the Middle East.

The board also appointed Metin Gulsen, previously senior vice president of accounting and financial control, as chief financial officer, while Harun Ba?turk, previously senior vice president of regional sales, was appointed chief commercial officer.

In a separate statement, the airline said it had decided not to distribute any dividends from its 2025 net profit of 118.2 billion liras ($2.65 billion), choosing instead to retain profits to preserve cash.

"The decision reflects the view that maintaining a strong cash position best serves the long-term interests of shareholders, given the ongoing environment of war in the Middle East and the uncertainty it brings," the company said.

The move marks a significant change from Turkish Airlines' recent shareholder payouts. The carrier last paid no dividends for 2023 earnings, while in 2025 it approved a cash dividend of 6.88 gross liras ($0.1540) per share (5.85 net liras) from 2024 earnings.

Turkish Airlines has paid dividends only once in the last five years, distributing cash to shareholders last year.

Passenger data on Thursday showed a 16% year-on-year increase in passenger numbers in March, even as the war in Iran affected the region. The load factor rose by 6.1 percentage points compared to the same month last year.

For the January-March period, Turkish Airlines carried 21.3 million passengers, 12.7% more than a year earlier.

Oil prices rose sharply after the war began on February 28. The conflict has led to widespread airspace closures, including over Russia and Ukraine in northern Turkey, as well as over neighboring Syria, Iraq and Iran.

Turkish Airlines shares rose 1.1%, while Turkey's main BIST 100 index (.XU100) rose 1.37%./ CNA