Turkish Airlines secures loan to...

Deal ‘provides confidence’ as carrier eyes carbon-neutral goal

Turkey’s flag carrier Turkish Airlines has secured financing for two Airbus A321neo aircraft with a multicurrency Japanese Operating Lease with Call Option (JOLCO) structure.

The deal includes a sustainability-linked loan facility, which is in line with the carrier’s commitment to reducing the carbon intensity of its fleet.

The airline said the new-generation aircraft the finance has been secured for have demonstrated environmental performance and will assist in its goal to become carbon-neutral by 2050.

The JOLCO structure is a popular operating lease model in aviation finance, allowing the lessee the option to purchase the aircraft at a pre-determined price, either during the lease period or at the end of the term.

The deal was structured by global financial services group Société Générale and is closely tied to Turkish Airlines’ ongoing efforts to meet its Sustainability Performance Targets (SPTs).

Murat Şeker, Turkish Airlines Board Member and Chief Financial Officer, said: “As an airline that has been recognised as the ‘Most Sustainable Flag Carrier Airline’ by World Finance for three consecutive years, we are proud to integrate sustainability into our aircraft financing processes.

“This agreement is not just about renewing our fleet but about ensuring that we are doing so in a manner that promotes sustainable growth and reduces our environmental impact.”

Over the last decade, Turkish Airlines has secured nearly $16 billion in financing for its fleet and operations.

It plans to expand its fleet in the coming years, with sustainability remaining a core pillar of its strategy.

The airline’s said its long-term goal of becoming carbon-neutral by 2050 will be underpinned by ongoing investments in greener technologies, efficient aircraft and environmentally responsible financing solutions.

For more information, visit www.turkishairlines.com

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