Türk Hava Yollari Anonim Ortakligi (THYAO) Q4 2024 earnings summary

Executive summary

• Full-year revenue exceeded $22.7 billion, with net profit at $3.4 billion, reflecting strong operational resilience, disciplined capital allocation, and industry-leading ROIC.

• Passenger capacity rose by 8.2% year-over-year, surpassing pre-pandemic levels by 35%, with international capacity and passenger numbers materially above 2019.

• Cargo volume increased by over 20%, with cargo revenue up 35% year-over-year, making the company the world's third-largest air cargo carrier by market share.

• Expansion into new markets included Melbourne, Sydney, Denver, Torino, and Santiago, increasing served countries to 131 and international destinations to 299.

• Awards included Guinness World Record for most countries flown, Best Airline in Europe (Skytrax), and Most Sustainable Flag Carrier Airline (World Finance).

Financial highlights

• Total revenues climbed by 8% to $22.7 billion, with passenger revenue up 4% and cargo revenue up 35% compared to 2023.

• Net profit for 2024 was $3.4 billion, down from $6.02 billion in 2023, with a net income margin of 15.1%.

• Profit from main operations declined 16% to $2.4 billion due to cost pressures, but net debt improved by over 20%, falling to $5.7 billion, and leverage dropped to 1.1x.

• EBITDA reached $5.7 billion with a 25% margin; EBITDAR margin was 25.3%.

• Dividend payout of $260 million (7.6% ratio) proposed, marking the first distribution since 2013.

Outlook and guidance

• 2025 guidance targets 6%-8% passenger capacity and revenue growth, with over 91 million passengers expected and EBITDA/EBITDAR margin guidance of 22%-24%.

• Net debt to EBITDA ratio projected at 1.1-1.3x, with gross CAPEX of $4.5 billion, 70% financed.

• Free cash flow margin expected at 8%-12%.

• Cargo performance anticipated to be broadly neutral in 2025 amid global trade uncertainties.

• Dividend policy aims for sustainable payouts and potential share buybacks.