Abstract:

In recent years, the high rate of exchange rates in Turkey has highlighted the importance of taking measures towards the exchange rate risk in real-world. In the sectors that use foreign currency in their activities, income or expenditure from foreign currency, the impact of exchange currency changes may be greater. In the tourism sector, which is one of these sectors, the importance of foreign currency-based income and expenditure, especially because of the international activities of airline passenger transport companies, is an important factor that could lead to the risk of currency. The objective of this study is to evaluate the exchange rate risks and what measures are taken toward it by examining the financial reports published by airline passenger transport companies that trade their shares in Borsa Istanbul and the exchange rate risk management statements. In accordance with this purpose, the financial reports of the two companies that are trading their shares in Borsa Istanbul and are operating in airline passenger transportation for the year 2017 have been examined. The study resulted in the fact that Borsa Istanbul airline passenger transport companies had currencies from U.S. Dollar, Euro, Turkish Lira, British Sterling and Japan's New Currency and both companies were exposed to currency risk. According to the average data of 8 months in 2018, the company’s assets lost value due to change in exchange rates and the company’s assets gained value. The study also found that the company A has a small amount of exchange-based derivative products, while the company B has no exchange-based derivative products.

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