Turkish Airlines Shares Climb After Earnings Beat Forecasts
By Mauro Orru
Turkish Airlines shares rose on Thursday after the group posted earnings and revenue ahead of analysts' expectations, boosted by strong travel demand during the summer.
Shares of Turk Hava Yollari, as the Turkish flag carrier is formally known, rose more than 4.5% in morning trading to TRY228.00.
The group on Wednesday posted a net profit of $1.92 billion, up 27% on the year. Earnings before interest, taxes, depreciation, and amortization climbed 19% to $2.40 billion, while net operating profit rose 10% to $1.58 billion.
The carrier handled 25.2 million passengers in the quarter, 9.6% more than last year. Revenue grew 4.2% to $6.32 billion.
Turkish Airlines was expected to post Ebitda of $2.22 billion and revenue of $6.31 billion based on company-compiled consensus, Citi analysts wrote in a note. The group's net operating profit is about 4% higher than consensus mostly thanks to lower fuel costs, they said.
The group paid $1.69 billion for fuel in the quarter, 20% less than last year, but not enough to lower costs overall. 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.
Carriers have been grappling for months with inflation-driven costs that mainly stem from higher salaries, but also air-traffic control charges and airport fees.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
November 02, 2023 05:25 ET (09:25 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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