Turkish Airlines posts Q3 2024 profits of $1.3 billion

Dubai: Turkey’s flag carrier, Turkish Airlines, posted profits of $1.3 billion on Thursday from its main operations during the third quarter of this year. The airline also reported a 5.4% increase in passenger capacity, carrying 24.5 million passengers.

The airline said it achieved growth amid a rather turbulent time for the aviation sector, including global geopolitical tensions, supply chain disruptions in aircraft production, and engine issues. It attributed its growth to “its agility and extensive flight network.”

From July to September 2024, Turkish Airlines’ total revenues increased by 4.9% year-on-year to $6.6 billion, even with the high base effect from the same period in 2023.

“Passenger revenues, which accounted for 84% of the total, increased to $5.6 billion driven by the strong contribution from the Far East region,” the airline explained in a statement.

The carrier’s third-quarter cargo revenues rose 47% year-on-year to $911 million.

Turkish Cargo increased the cargo transported by 16.8% compared to the same period in 2023. It became the world’s third-largest air cargo carrier in September, with a market share of 5.7%, citing data published by the International Air Transport Association (IATA).

“Due to competitive pressure on passenger unit revenues along with the negative impacts of global inflationary environment and engine problems on costs, Profit from Main Operations recorded as $1.3 billion in the third quarter of 2024,” it explained.

The airline’s EBITDAR amounted to $2.3 billion, and its EBITDAR margin stood at 35.2%, exceeding its historical average and peers. “Financial income generated through Turkish Airlines’ effective and dynamic portfolio management also played a key role in supporting net profit,” it said.

Fleet growth

The carrier aims to expand its fleet to 800 aircraft by 2033 as part of its 100th Anniversary strategy. In spite of bottlenecks in aircraft production, the airline increased its number of aircraft by 9% in the first nine months of the year to 467.

“As a part of its diversification strategy to minimize financing costs and currency risks while growing its fleet, Turkish Airlines became the first airline outside of China to finance three Airbus A350 aircraft in Chinese Yuan in the third quarter,” it said.

The airline also secured a sustainability-linked loan for two fuel-efficient A321-Neo aircraft, marking its entry into sustainable finance.

The airline currently employs over 93,000 workers, along with its subsidiaries. “Turkish Airlines proudly represents its nation in the global air transportation industry with its unique flight network, modern fleet, superior service, and successful performance,” it said.