Turkish Airlines Posts Surge in Profit After Strong Summer — Update

   By Mauro Orru 
 

Turkish Airlines reported higher profit and revenue for the third quarter amid strong travel demand during the summer.

Turk Hava Yollari, as the Turkish flag carrier is formally known, on Wednesday posted a net profit of $1.92 billion, up 27% on the year. The carrier handled 25.2 million passengers in the quarter, 9.6% more than last year.

Overall revenue climbed 4.2% to $6.32 billion. However, revenue at the airline's cargo business fell 29.5% to $618 million.

Expenses increased 2.3% on year to $4.74 billion, as the airline paid more for personnel, maintenance, ground handling as well as passenger services and catering. The group paid $1.69 billion for fuel in the quarter, 20% less than last year, but not enough to offset higher costs elsewhere. Airlines have been grappling for months with inflation-driven costs that mainly stem from higher salaries, but also air-traffic control charges and airport fees.

Turkish Airlines hasn't been immune to the recall of jet engines by Pratt & Whitney. The carrier said in September that it expects to ground more than 10 planes by the end of the year for inspection due to suspected contaminated metal in some parts that could lead to cracking.

The carrier counted 429 aircraft in its fleet at the end of September and, while the expected number of aircraft to be grounded appears small in proportion, the carrier has already seen a loss in passenger capacity due to the grounding of planes in August, a company spokesperson said in September.

The airline flies to more than 330 destinations, and is among a rare few that still operate direct flights to Russia after the invasion of Ukraine.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

November 01, 2023 12:28 ET (16:28 GMT)

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