Turkish Airlines to spend USD 2.3 bn on cargo-specialized terminal: Turkey’s flag carrier Turkish Airlines has reportedly greenlit a TRY 100 bn (c. USD 2.3 bn) investment to build a mega cargo terminal. While the exact location of the planned facility was not disclosed, Istanbul is the likely candidate, given its hosting of two other aviation hubs and its status as a commercial epicenter.

Why it matters-

Defending market share: The move is part of Turkish Airlines’ efforts to cement its status as a global air cargo leader and support its 10-year plan — announced in 2023 — to double its cargo volumes by 2033. Istanbul Airport unseated EU giant Frankfurt Airport as Europe’s leading air cargo hub in 2024, driven by 40% cargo growth that far outpaced Frankfurt’s 1.2% growth rate.

But how could a new facility help? New cargo-specialized infrastructure with modern tech is set to improve flexibility and efficiency, helping the carrier move more high-growth, time-sensitive cargo segments, such as pharma products, automotive parts, and aerospace components, according to a 2025 report (pdf) by the International Air Transport Association.

Background: As of September 2025, Turkish Cargo operated a vast network, flying to 134 countries and 375 destinations with a fleet of 28 dedicated freighters, placing third globally after controlling about 6.1% of the global air cargo market share in 9M 2025.

Watch out for the design choices-

It’s unclear whether the new terminal has a ready-to-develop design, but Turkish Airlines faces two choices: whether to build the new terminal as an in-airport or an off-airport facility.

Off-airport facilities have their advantages: To increase capacity and bypass airport space constraints, the aviation industry is increasingly adopting off-airport cargo facilities. If Turkish Airlines adopts an off-airport facility for the new terminal, it can potentially reduce airside congestion and speed up last-mile operations.

Our take: the move could be about improving cargo yields-

High-tech facilities can be a boost for yields: While Turkish Airlines’ cargo volumes rose 5.6% y-o-y in 9M 2025 to 1.6 mn tons, revenues dipped, suggesting a high-volume, low-yield environment driven by the global return of passenger belly capacity. A dedicated, tech-driven terminal could help the carrier lower unit operational costs and recover these margins through advanced automation and faster last-mile turnaround.

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