Turkish Air net income climbs 18%

Turkish Airlines reported an 18% increase in net income in dollar terms during the first half of 2023 from a year ago, with passenger revenues offsetting a decline in the cargo unit. 

The national carrier’s total revenue rose 25% during the same period to $9.5 billion while profits stood at $868 million, driven by a 50% surge in passenger income, according to earnings data published on Wednesday. That compensated for a decline of about 42% in cargo to $1.2 billion. 

The company’s presentation for the first half results show it posted a 27% increase in international passengers, as Turkish carriers focus on overseas markets due to a domestic airfare price cap and runaway inflation at home. 

Turkish Airlines plans to almost double its fleet of aircraft to 800 over the next decade. The carrier, 49.1%-owned by the nation’s sovereign wealth fund, has set a target of 171 million travelers by 2033.

The company’s shares rose 86% in Istanbul trading this year, compared with a 35% increase in the benchmark index. Seventeen analysts have a buy rating on the company while three recommend holding the shares.