- Turkish Airlines secured financing for two Airbus A321neo jets using a multicurrency JOLCO structure with a sustainability-linked loan.
- The deal, structured by Société Générale, aligns with the airline’s targets to reduce fleet carbon emissions and supports its goal of becoming carbon-neutral by 2050.
- Over the past decade, Turkish Airlines has secured $16 billion in financing and won over 30 awards for its innovative financial models.
Turkish Airlines, Turkey’s flag carrier, has successfully secured financing for two Airbus A321neo aircraft using a sophisticated multicurrency Japanese Operating Lease with Call Option (JOLCO) structure. The financing deal, announced by the airline on Friday, September 20, includes a sustainability-linked loan facility, reflecting Turkish Airlines’ commitment to reducing its environmental impact while pursuing fleet expansion.
According to the airline, the financing was secured at one of the lowest costs in the industry, underscoring its expertise in leveraging award-winning financial models to drive growth and sustainability.
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. In this case, the deal was structured by Société Générale, a leading global financial services group, and is closely tied to Turkish Airlines’ ongoing efforts to meet its Sustainability Performance Targets (SPTs).
These targets include reducing the carbon intensity of the airline’s growing fleet as part of its broader environmental strategy. The key performance indicator (KPI) linked to the loan focuses on minimising the fleet’s carbon footprint, aligning with the company’s goals to improve sustainability metrics.
Murat Şeker, Turkish Airlines’ Board Member and Chief Financial Officer, expressed his satisfaction with the deal, emphasising its significance for the airline’s sustainability agenda. “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,” said Şeker.
He further highlighted the strategic importance of this financing arrangement in supporting the airline’s ambitious goal to become carbon-neutral by 2050. “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,” he added.
Turkish Airlines, which boasts one of the world’s largest and most modern fleets, continues to lead in the aviation finance sector with innovative financing models. Over the last decade, the airline has secured nearly $16 billion in financing for its fleet and operations, receiving over 30 international awards for its leadership in aviation finance.
Prestigious organisations such as Global Transport Finance and Airfinance Journal have repeatedly recognised the airline’s financial strategies, praising its ability to secure low-cost funding while adhering to best practices in sustainability.
The airline’s finance team has been pivotal in negotiating competitive financing terms, allowing Turkish Airlines to expand its fleet while maintaining industry-leading cost efficiencies. As the global aviation industry faces increasing pressure to meet environmental standards, Turkish Airlines remains committed to integrating sustainability into all facets of its operations, from aircraft financing to operational practices.
The airline’s dedication to sustainable aviation is further supported by its adoption of new-generation, fuel-efficient aircraft like the Airbus A321neo, which contributes to lower emissions and improved fuel economy.
In the coming years, Turkish Airlines plans to expand its fleet, with sustainability remaining a core pillar of its strategy. The airline’s 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.