India-Pakistan crisis: Turkish Airlines share price crashes 10% in one month
India-Pakistan conflict: Turkey’s tourism industry is reeling under the effect of the India-Pakistan conflict, with the shares of Turkish Airlines crashing over 10% in the last one month.
Turkey’s public support for Pakistan after India’s military operation against terrorist installations in Pakistan and Pakistan-occupied Kashmir sparked widespread cancellations from Indian travellers to the country.
MakeMyTrip, earlier this month, said flight bookings to Turkey have dropped by 60% in the last one week and cancellations surged by 250%.
Against this backdrop, Turk Hava Yollari AO or Turkish Airlines shares declined from 312.75 lira to 279.75 lira, shedding 10.55% during this period.
“Turkish Airlines’ share price has been under pressure due to the recent cancellation of flights for Indian tourists. Fresh bookings from India to Turkey also hit significantly after Turkey stood with Pakistan after Operation Sindoor. Hence, the market is discounting the business loss that the aviation company is expected to incur in the upcoming quarters,” Avinash Gorakshkar, Head of Research at Profitmart Securities, told Mint.
As many Indian tourists visit Turkey, the aviation stock may see more downside, predicted Gorakshkar, following the quarterly results announcement, as the company’s guidance is expected to remain muted in the upcoming quarters.
Turkish Airlines: Stock outlook
Anshul Jain, Head of Research at Lakshmishree Investments, commenting on the technical outlook for the stock, said, “Thyao has given a failed breakout from a 45-week-long rounding pattern at 331 Turkey Lira and is now unwinding trapped longs. The breakdown signals a structural failure, and the ongoing decline suggests bearish momentum may intensify.”
He added that bears will initially target the pattern low of 257.5 levels. A decisive breach below this support will likely open the gates for a deeper correction toward 230, Jain predicted, adding that until then, the stock remains under pressure and should be avoided for fresh longs.
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