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Wed 29 Jun 2016 09:20 AM

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Turkish Airlines suspends flights, offers refund after Istanbul attack

Turkish Airlines, airport operator shares weaken after the attack

Turkish Airlines suspends flights, offers refund after Istanbul attack

Turkish Airlines suspended its flights until 8 am (0500 GMT) on Wednesday, the company said in a statement, after suspected ISIL bombers killed 36 people at Istanbul airport late on Tuesday.

The flag carrier said in another statement any bookings on flights to or from Istanbul Ataturk airport between 28 June and 5 July 2016 would be changed or refunded without any cost, provided the passenger requests this by July 31.

Shares in Turkish airlines and an airport operator fell on Wednesday after the terrorist attack, while the main share index and the lira held firm.

Turkish Airlines shares were down 2.2 percent by 0713 GMT, having fallen 3.2 percent on opening. Shares in TAV Airports, which runs Ataturk Airport on the European side of the city fell as much as 4 percent.

Budget carrier Pegasus, which operates flights using the airport on the Asian side of the city, saw a fall of more than 1 percent in morning trading.

The main stock index was virtually flat, lagging behind emerging market peers.

The lira continued to firm after the normalisation of relations with Israel and Russia boosted sentiment. It stood at 2.8914 against the dollar compared to 2.9156 late on Tuesday. Analysts said such attacks had already been priced in.

Moscow imposed sanctions on Turkey and Russian visitors largely stopped coming after Ankara downed a Russian jet near the Syrian border.

In May foreign visitor arrivals in Turkey saw their biggest drop in at least 22 years as Russians continued to shun their Black Sea neighbour and security fears kept other tourists away.

The benchmark 10-year bond was flat at 9.41 percent on Wednesday

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