Türk Hava Yollari Anonim Ortakligi (THYAO) Q3 2024 earnings summary

Executive summary

• Navigated a challenging environment with geopolitical conflicts, macroeconomic uncertainties, delayed aircraft deliveries, and rising operational costs.

• Total revenues for 3Q'24 rose 4.9% year-over-year to $6.63bn, with 9M'24 revenues up 7.8% to $17.06bn.

• Net income for 3Q'24 declined 19.6% year-over-year to $1.54bn, and 9M'24 net income was $2.71bn.

• Cargo revenues surged 47.4% in 3Q'24, driven by strong Asian demand and sea freight disruptions.

• Miles&Smiles loyalty program surpassed 20 million members; new business class Crystal Suites introduced.

Financial highlights

• Total revenues rose 5% year-over-year to $6.6 billion, marking the highest quarterly revenue.

• EBITDA reached $2.3 billion with a 35% margin, down 5 percentage points from last year due to higher personnel expenses.

• Net income was $1.5 billion in Q3 and $2.7 billion for 9M'24, marking the 13th consecutive profitable quarter.

• Free cash flow for the first nine months was $2.2 billion, raising liquidity to $7.4 billion.

• Operating expenses rose 14.7% year-over-year in 9M'24, with personnel costs up 41.6%.

Outlook and guidance

• Bookings for Q4 remain strong despite geopolitical tensions.

• Passenger capacity growth expected at 5%-8% in 2025, down from 8% in 2024.

• 2024 revenue expected to increase 8%-9% over 2023; EBITDAR margin guidance maintained at 24%-27%.

• The Group has signed agreements for 413 aircraft deliveries between 2024 and 2045, with a list price value of $49,538 million.

• Investment incentives totaling $4,524 million are available for future use, with $141 million utilized in the period.