Turkish Airlines’ Financial Performance Results in Profit in Its Second Quarter 2023

Turkish Airlines’ financial performance continues in the profit zone in the figures released for the second quarter of this year. This shows that the airline is continuing to make a profit following on from the profitable first quarter of this year as well as the year-end in 2022 where Turkish Airlines also posted an overall profit for the year.

Turkish Airlines has not only been successful at performing financially but has also shown its environmental credentials by being an early pioneer in the use of Sustainable Aviation Fuel (SAF). As we know SAF consists of a mixture of plant-based fuels which produce less carbon dioxide and other greenhouse emissions that are bad for the environment and are associated with global warming. The cost of adapting to and using SAF has not affected Turkish Airlines’ financial performance which possibly as a result of its endeavors is continuing in the black.

However, as we know airlines in general have been having difficulties in recent times. During the pandemic, governments around the world restricted international travel meaning that demand for flights slumped. Turkish Airlines’ financial performance, like that of many other airlines, was heavily affected by this. To make matters worse, when pandemic restrictions were lifted there was a surge in demand for flights which airports and airlines struggled to cope with. This is because they were short staffed having laid off many during the pandemic when demand was less. At this time, because many staff were now in other fields, they were struggling to re-recruit. In addition to this, the subsequent war in Ukraine would have also affected Turkish Airlines’ financial performance as it increased the cost of SAF.

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Turkish Airlines was one of the early pioneers in the use of SAF. ©Turkish Airlines

Turkish Airlines’ Financial Performance

In terms of Turkish Airlines’ financial performance, the company made a profit 635 million US dollars in the three months up to 30th June 2023. This is approximately 10% higher than the 576 million US dollars made in the three months up to 30th June 2022. It is also significantly higher than the 233 million US dollars made in the first quarter. This shows that the company is benefiting from summer bookings which tend to improve profits at this time of year.

In terms of Turkish Airlines’ revenue (total money received), the company has made a figure of 5.149 billion US dollars in the three months up to 30th June 2023. This was approximately 13.6% higher than the 4.535 billion US dollars made in the same time period in 2022. This shows that Turkish Airlines has improved in its ability to attract customers. The fact that profits have improved by 10% but revenue has improved by slightly more at 15.6%, indicates that Turkish Airlines financial performance has fared slightly worse when it comes to cost control when compared to the same time in the previous year. There was a slight improvement in the cost control in the previous quarter so overall cost control in the past 6 months has remained approximately the same. However, the slight reduction in the ability to control costs would need to be checked on by the company.

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Turkish Airlines has fared slightly worse in its ability to control costs. ©Turkish Airlines

The Company’s Response

The company’s response to Turkish Airlines’ financial performance was very positive saying that the company has triumphed over what it describes as the negative circumstances affecting the industry since 2020.  Turkish Airlines has also been named as Europe’s leading network carrier in terms of number of daily flights operated for the last three years for the European Organization for the Safety of Air Navigation. This status has been maintained in the Second Quarter of this year. Its commitment to the environmental causes such as reducing its carbon footprint (as has been the case with the adoption of SAF) has also been rewarded the title “Most Sustainable Flag Carrier Airline” by World Finance.

As one can see, Turkish Airlines’ financial performance continues to grow strong. In addition, its environmental credentials including its continued use of SAF have been acknowledged and rewarded. The slight reduction in its ability to control costs would need to be checked on possibly. We have to wait to see how this progresses.

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Amuthan Chandrarajan
Amuthan Chandrarajan
Aviation Reporter - Amuthan has a background in residential and commercial real estate. He also has a keen interest in aviation and travel and has visited many countries. Amuthan has a sound knowledge of business and finance.  He has gained a Master of Business Administration and has become a Chartered Management Accountant.