Turkish Airlines reports profit rise of 26 per cent

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In a time when many airlines around the world are posting losses, Turkish Airlines has announced its consolidated financial results for last year, revealing a 26 per cent increase in year-on-year net profits – up to $874 million.

Overall revenues increased by 26 per cent over the previous year, to $4,719 million. Of that amount, 78 per cent derived from international traffic and 22 per cent from domestic.

The size of the carrier’s fleet grew by 25 per cent during the year – from 102 to 127 planes. The airline noted that an increase in passenger traffic paralleled its revenue growth.

Passenger numbers rose by 15 per cent, year-on-year, to 22.6 million and cargo volumes increased by eight per cent, to 203,000 tons.

Although fuel expenses increased by 44 per cent for the year, resulting in additional operating costs of $441 million, the airline’s operating profit increased by 25 per cent, to $488 million. Other income and expenses were adversely affected by the loss in asset value due to the global financial crisis.

Operating income fell by 19 per cent, to $452 million.

“As a result, the 10.3% gross profit margin and 9.6% profit margin stand in good position compared to the industry average,” the airline said. “The appreciation of foreign exchange rates had a positive effect on financial income and expenses which had an impact on the net income as well.”

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