Turkish Airlines reports record profit of $2.4bn

Turkish Airlines recorded a profit from main operations of $2.4 billion in 2024 despite global geopolitical and economic tensions, bottlenecks in aircraft production, and engine issues, the airline said.

 

It said the group outperformed industry averages in capacity, passenger numbers, and profitability over the past 20 years. Accordingly, the company maintained its consistent profitability under a challenging post-pandemic operating environment, reducing its net debt by $8.3 billion in just three years. 

 

Firmly advancing towards its 100th anniversary goals, Turkish Airlines demonstrates its dedication to sharing its success by announcing a cash dividend of $260 million and remains committed to investor returns with its current share buyback programme, it said. 

 

Turkish Airlines’ total revenues in 2024 increased by 8.2% year-on-year to $22.7 billion. Passenger revenue rose by 4% under intensifying competition, while cargo revenue grew by around 35% compared to 2023. Strengthening Türkiye’s position as a global transfer hub through its strategic initiatives and state-of-the-art infrastructure, Turkish Cargo increased its annual cargo volume by over 20%, becoming the world’s third-largest air cargo carrier according to data published by the International Air Transport Association (IATA). 

 

Representing significant value for the Turkish economy, approximately $18 billion of the company’s total revenue was recorded as export revenue while total assets reached around $40 billion, growing 18-fold since 2002.

 

As an indicator of Turkish Airlines’ operational cash generation capability, EBITDAR (Earnings Before Interest, Tax, Depreciation, Amortization, and Rent) totalled $5.7 billion with a margin of 25.3%, aligning with the company’s long-term targets.

 

Turkish Airlines Chairman of the Board and the Executive Committee Prof Ahmet Bolat stated: “Turkish Airlines continues to set industry benchmarks with its strong financial performance and strategic growth as showcased by our 2024 results. Despite global challenges, we remain committed to delivering our award-winning service, expanding our global network, while providing long-term value for our investors, employees, and of course our guests. As we move forward towards our 100th anniversary, we take pride in strengthening Türkiye’s position as a key player in global aviation and forge ahead on our journey to the top.”

 

Aiming to expand its fleet to more than 800 aircraft by 2033 as part of its 100th Anniversary Strategy, Turkish Airlines increased its number of aircraft by 12% in 2024 to 492, despite bottlenecks in aircraft production. Targeting to minimise costs and currency risks while expanding its modern fleet, the company continued its diversification strategy in aircraft financing and completed a total of $1.8 billion in aircraft financing throughout the year.  – TradeArabia News Service