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Istanbul’s New Airport Is Boosting a Budget Airline Instead of Turkish Airlines

  • New hub’s drag on Turkish Airlines gives Pegasus shares a lift
  • Budget carrier’s stock has outperformed its peer all year
Istanbul Airport

Istanbul Airport

Photographer: Kostas Tsironis/Bloomberg

Updated on

Istanbul’s new airport was meant to benefit Turkey’s flag carrier, but it boosted its budget rival instead.

Pegasus Hava Tasimaciligi AS stock has outperformed Turk Hava Yollari AO, or Turkish Airlines as the company is known, by more than 95 percentage points this year. The divergence is being amplified by bets that it stands to gain amid setbacks that have plagued its rival, which is now flying primarily from a new airport 20 miles outside the city center.