Turkish Airlines announces it will not distribute dividends due to serious losses

Turkish Airlines Company is among the few flagship companies in the Turkish economy. It is also a brand contributing so much to the promotion of Turkey country abroad. It goes without saying it has well deserved the global reputation it possesses today, thanks to incredible efforts also supported by the government. Today, however the competition is so tough that these extra efforts might end up as a heavy financial burden for any company, as is the situation in THY case.

In fact, management of Turkish Airlines (THY) which suffered serious losses last year, has declared that it would be appropriate not to distribute dividends and transfer losses to losses of previous years as there are no distributable profits in the legal records. In the statement made by the Company to the Public Disclosure Platform (KAP), it was declared that a net loss of as 47 million TL (47.000.000 TL) according to the financial statements for the period of 1 January 2016 – 31 December 2016 was incurred, and a financial period loss of (6.467.842.402 TL) net was calculated according to advance tax statement as per legal records.

To recap the issue from a very simple point of view, the management tool called “THE BUDGET” is more important today than ever for any company to survive in the brutal competition environment prevailing today. The thing is sometimes it take a bitter experience to learn this lesson. Therefore, if there is one thing business professionals should pay much attention to, it is a solid and healthy budget on the table.