November 26, 2019 / 6:03 PM / 2 months ago

Turkey's Atlasjet says suspends flights until Dec 21 due to cash flow issues

ANKARA, Nov 26 (Reuters) - Turkish airline Atlasjet has suspended its flights as of Tuesday until Dec. 21, saying the transfer of flights to Istanbul’s new airport had caused it cash flow problems.

“With the transfer of flights to the new Istanbul airport from April 2019, there has been a sharp rise in logistics and operational costs, making it impossible to make up for our losses recorded in the 2016-17 period,” the statement said.

The company also cited lower demand for its flights in the second half of 2018 due to the “fast and aggressive” depreciation of the Turkish lira.

The currency is down 8.5% this year after shedding nearly 30% last year.

Atlasjet said the suspension would allow time for the necessary restructuring and improvement in its cash flow.

Atlasjet offers scheduled flights for passengers and cargo and operates domestic and international routes to Europe, Russia, Kazakhstan, Germany, and the United Arab Emirates. (Reporting by Ece Toksabay Editing by Alexandra Hudson)

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