Turkish Air’s profit beats estimates on surge in cargo sales

Turkish Airlines reported Q3 profit that beat expectations as cargo operations and reductions in staffing costs boosted earnings. The shares soared the most in eight months. Net income at Turkey’s flagship carrier was 6.3b liras ($563m), according to a statement on Thursday, 35% higher than the top of a range of analyst estimates. That compared with a loss of 946m liras in 2020, when much of global travel was grounded due to the Covid-19 pandemic. The results are the latest sign that the aviation industry is recovering quickly from the coronavirus crisis, with both Lufthansa and Air France-KLM reporting healthy figures and outlook in recent days. The dropping of border restrictions by most governments outside Asia has led to a surge in pent-up demand, while the opening of key transatlantic routes starting next week is expected to give another boost. Turkish Airlines is among carriers to have taken advantage of a booming freight business even while passenger travel has been subdued. The company is looking to spin off its cargo operations into a separate unit to unlock value for investors and to have a more efficient management. Cuts in staff expenses to below 2019 levels due to salary reductions and the depreciation of the Turkish lira also buoyed the earnings, the company said.<br/>