Turkish Airlines’ profits slipped amid higher costs in the third quarter, a period in which strong cargo growth helped offset flat passenger revenue.
The Star Alliance carrier boosted revenue 5% year on year to $6.63 billion in the three months ending 30 September 2024.
Notably, while passenger revenue was virtually flat at $5.55 billion versus the same quarter last year, cargo sales jumped 47% year on year to $911 million. The latter growth was driven by strong demand from the Far East.
Operating costs over the same period rose 14% year on year to $5.42 billion, 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 $1.35 billion in the third quarter, while net profit was down a fifth at $1.54 billion.
The growing role of cargo amid heightened cost pressures continues a trend already evident in the second quarter. 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.