Türk Hava Yollari Anonim Ortakligi (THYAO) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 13.7% YoY to $20.942bn; profit from main operations increased 2.9% to $2.859bn.

• Reported net income reached $6.021bn, including a $3.106bn one-off inflation-accounting gain; excluding that effect, net income was $2.915bn.

• Passenger growth and higher capacity supported revenue, while cargo revenue and 4Q operating profit remained under pressure.

Financial highlights

• 4Q revenue was $5.119bn, up 7.3% YoY; passenger revenue rose 7.8% to $4.141bn, while cargo revenue fell 3.3% to $787mn.

• FY gross profit rose 11.2% to $4.882bn; net operating profit slipped 1.6% to $2.673bn, while profit from main operations rose 2.9% to $2.859bn.

• FY reported net income increased 121% to $6.021bn; before inflation accounting, net income was $2.915bn versus $2.725bn in 2022.

• Total operating expenses rose 16.3% to $18.269bn; fuel expense declined 3.6% to $6.232bn, while personnel expense rose 52.1% to $3.256bn.

Outlook and guidance

• 2024 fuel hedging stood at 37%; the stated break-even fuel price was $83 per barrel.

• AJet was incorporated in 2023 as an AnadoluJet spinoff and was set to operate independently in 2024, with fleet renewal, international network expansion and ancillary revenue initiatives.

• Future route plans span the Americas, Europe, Middle East, Africa and Asia, including Denver, Sydney, Glasgow and Phnom Penh.