With the globalization of economic relations and trade, the severity of competition in airline companies is increasing and unit revenues are decreasing. In this environment, traditional cost accounting systems may be insufficient to produce solutions in the face of changing cost structures and increasing demand of airline companies. On the other hand, airline companies that manage their costs effectively and make continuous improvement gain a competitive advantage. Strategic cost management approaches have been developed to provide the necessary strategic information for businesses to gain competitive advantage. The aim of this study is to investigate the application of the target costing method, which is one of strategic cost management approaches, in airline companies.

The results compiled with a questionnaire consisting of open-ended and multiple-choice questions on the feasibility of target costing, applied to the authorities on cost management in airline companies operating in Turkey, were analyzed and evaluated. It has been concluded that the target costing method is partially applied in the airline companies participating in the research or that some features of the method are used in cost planning. It is expected that airline companies and companies operating in similar service sectors will benefit from the results of the research and contribute to the literature of the article.