SunExpress, a joint venture between Turkish Airlines and the Lufthansa Group, recently celebrated the airline's 35th anniversary. To celebrate this anniversary, CEO Max Kownatzki gave important insights into the development of the airline and future strategic plans at an event held in Antalya, Turkey.
SunExpress has developed from a small charter airline that primarily brought German tourists to the Turkish Riviera, becoming a major player in international air traffic. In 2024, the airline carries over 15 million passengers and is looking forward to an impressive expansion in the global aviation industry.
SunExpress Travel: From Charter Airlines to International Providers
Since its founding in 1990, Sunexpress has developed significantly. The tourism market's origins as purely charter-based airlines are increasingly changing as airlines diversify their capabilities and expand into scheduled flights. Today, SunExpress is one of Türkiye's largest airlines, regularly linking European cities with popular destinations in Türkiye. A significant portion of that revenue still comes from the tourism sector, particularly through tour operators, but the new business sector is also making a significant contribution to growth.
In 2024, the airline achieved a milestone by carrying over 15 million passengers. A key part of this success comes from the ever-growing regular flights, appealing to more and more business travelers, in addition to traditional tourist routes. Revenue from tour operators still accounts for 45% of SunExpress's total revenue, but the company has successfully used other sources to diversify revenue and reduce the seasonality of its business model.
Fleet Growth and Strategic Partnerships
The next few years will be marked by the expansion of a large fleet. In an ambitious move, SunExpress is set to operate 85 aircraft in 2025, while the airline will operate 85 aircraft by 2025, and has already ordered the 132 Boeing 737 Max 8S. Airlines have particularly high hopes for the Boeing 737 Max 10. This not only allows SunExpress to achieve a wider range, but also opens new markets in Asia and Europe. The planned range ranges from Iceland in the western part of the country to India in the east.
However, Kownatzki also admitted that delivery of Boeing Max aircraft is not progressing smoothly. Delivery delays by manufacturer Boeing are a major issue as they are important due to the planned expansion of the fleet and associated business strategies. Despite the technical performance and economic efficiency of the new aircraft, SunExpress faces challenges that affect not only the growth of the fleet, but also long-term planning.
Addressing seasonality and growth in new markets
A key issue with SunExpress is addressing the strong seasonality of air traffic. Winter months, especially, brings challenges as most flights are run in the summer months. To compensate for fluctuations in demand, the airline has developed innovative solutions. This includes, among other things, marketing new travel products aimed at increasing Turkey's year-round destination appeal. An example of this is a special offer for golfers that includes access to numerous golf clubs in Türkiye.
Additionally, the airline was able to achieve an astounding load factor of 2024% in the winter of 90. This is an exceptional achievement for the month of the November offseason. Another measure of stabilizing revenue over the winter is leasing the aircraft to other operators. For example, in the winter of 2023/2024, two Boeing 737-800 aircraft were leased to South African Airlines. The success of this project increased the number of leased aircraft to four in the following season.
In addition to expanding its products in Türkiye, SunExpress is also focusing on new markets. The UK and Ireland markets have become increasingly focused since 2022, especially important. SunExpress currently has 11 destinations in the UK Isles and plans to expand the network further. Airlines are expanding in other markets, such as the Middle East. Starting in June 2025, the airline will begin linking from Antalya to Amman, Jordan.
Challenges and competitive pressures
Despite its steady growth and expansion, Sunexpress faces fierce competition. In the Turkish home market, airlines are competing with other up-and-coming airlines, such as Pegasus, and are expanding their capabilities. Kownatzki stressed that the market provides ample space for multiple operators, but acknowledged that margins suffered from increased competition. The high costs, particularly due to increased wages due to the inflationary trend in the Turkish economy, have put pressure on airline profitability.
The competitive pressure and high operating costs are due not only to domestic flights in Türkiye, but also to international markets. Therefore, airlines are forced to continue to find efficient solutions to stabilize their operational figures despite rising costs.
Outlook: Strategic Development and New Partnerships
SunExpress is committed to continuing to develop and expand its business model. Airlines are currently investigating new opportunities for greater integration into other areas of the aviation industry. One promising direction is in-house training, which already trains 160 pilots. Additionally, SunExpress is working with several Turkish educational institutions to address the shortage of skilled workers in the aviation industry and create unique capabilities in the region.
Sunexpress wants to expand its role in sales. Airlines already function as distributors for other airlines, such as Air Cairo in Egypt and Electra Air in Bulgaria. Kownatzki sees this as an opportunity to further expand its business model in new markets.
