Turkish Airlines’ profit slips in Q3 despite cargo strength

Turkish Airlines’ profits slipped amid higher costs in Q3, a period in which strong cargo growth helped offset flat passenger revenue. The Star Alliance carrier boosted revenue 5% year on year to $6.63b in the three months ending 30 September 2024. Notably, while passenger revenue was virtually flat at $5.55b versus the same quarter last year, cargo sales jumped 47% year on year to $911m. The latter growth was driven by strong demand from the Far East. Operating costs over the same period rose 14% year on year to $5.42b, including a 54% year-on-year increase personnel costs. The carrier also flags the cost impact of the continued groundings of a portion of its Pratt & Whitney GTF-powered Airbus narrowbody fleet. As a result, the carrier’s profit from main operations fell 22% to $1.35b in Q3, while net profit was down a fifth at $1.54b. The growing role of cargo amid heightened cost pressures continues a trend already evident in Q2. While Turkish Airlines’ freight revenue for the first nine months of 2024 was up 40% year on year, its passenger turnover increased only 3% year on year during the nine-month period.<br/>