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Turkey’s tourism industry is grappling with the fallout from the India-Pakistan conflict, with Turkish Airlines’ share price dropping by over 10% in the past month. The downturn comes after Turkey’s public support for Pakistan following India’s military operation, dubbed Operation Sindoor, which targeted terrorist installations in Pakistan and Pakistan-occupied Kashmir.
As a result of Turkey’s pro-Pakistan stance, Indian travelers are canceling their trips to Turkey en masse. According to MakeMyTrip, flight bookings to Turkey have fallen by 60% in just one week, while cancellations surged by 250%. In 2023, over 287,000 Indian tourists visited Turkey, spending an estimated $350–400 million.
The impact is now evident in the stock market. Turkish Airlines’ share price (Turk Hava Yollari AO) has dropped from 312.75 Turkish Lira to 280 Turkish Lira, a decline of 10.47% as of May 27. Analysts attribute this sharp fall to the expected loss of business from Indian tourists in the coming quarters.
“Turkish Airlines’ stock has come under pressure due to mass cancellations and a sharp drop in fresh bookings from India,” explained Avinash Gorakshkar, Head of Research at Profitmart Securities. “The market is factoring in the expected business loss.”
From a technical perspective, Anshul Jain, Head of Research at Lakshmishree Investments, noted that the stock has failed to maintain a breakout pattern and is now showing signs of a deeper correction. “Bears will initially target the pattern low of 257.5 Turkish Lira, with a potential further drop to 230 if support levels break,” Jain added.
With muted business expectations and a bearish technical outlook, Turkish Airlines’ stock faces continued pressure in the near term.
