Investigation of foreign exchange rate risks of Borsa Istanbul airline passenger transportation companies

Recently, the high volatility in the exchange rates in Turkey have brought the importance of taking measures to exchange rate risk for the companies in real sector. The effect of exchange rate changes can be higher in sectors that income or expenses are in foreign currencies or that use foreign currency in their activities. In the tourism sector, the fact that the airline passenger transportation companies are operated in international activities due to their income and expenditure based on currency is an important factor that could exposed to exchange rate risk. The purpose of this study is to evaluate the exchange rate risks by examining the financial reports that published by the airline passenger transportation companies whose shares are traded in the Borsa Istanbul. In accordance with this purpose the financial reports of two airline passenger transportation companies whose shares are traded in the Borsa Istanbul were examined for 2017. As a result of the study, it was determined that the publicly traded airline passenger transportation companies in Borsa Istanbul had currencies that US Dollar, Euro, Turkish Lira, British Pound and Japanese Yen and both companies have been exposed to exchange rate risk. In the study, it has determined that according to the 8-month average of the year 2018, assets of company A has lost value and assets of company B has gained value, affected by the change in foreign exchange rates. In addition, in the study it has been determined that a company has a small amount of derivative products based on currency and the other does not have any derivative products based on currency