Turkish Airlines’ operating profit slipped 25% year on year in the second quarter to $591 million amid heightened cost and unit revenue pressure, despite reporting a near 10% jump in revenue.
The Star Alliance carrier generated almost $5.7 billion in revenue in the three months ending 30 June 2024. While its passenger revenue was up only about 4% year on year, to $4.6 billion, amid competitive pressure, Turkish Airlines notably boosted its cargo revenue by 48% year on year, to $885 million.
“Turkish Cargo captured a significant share of the accelerated e-commerce growth in the second quarter of this year,” the company says, adding it also gained from shippers seeking alternatives to counter disruptions in the Suez Canal. The carrier increased its cargo volume by almost one third over the first half of the year.
But Turkish’s costs climbed 16% year on year in the second quarter to more than $5.1 billion – including a 30% rise in personnel costs. Consequently, the carrier’s second-quarter operating profit slipped by one quarter year on year, to $591 million.
Turkish’s net profit, however, was boosted by a “sizeable contribution” from its investment portfolio. This helped lift its second-quarter net profit 49% year on year, to $943 million.
