874$ Mn Net Profit Of Turkish Airlines Inc. For The Year 2008

Turkish Airlines has announced its Consolidated Financial Results for the year 2008. According to its financials, THY was able to achieve 26% increase on Net Profit of $874 mn. Revenues increased by 26% to $4,719 mn; 78% of scheduled revenue was from international traffic and 22% was from domestic traffic. In the operating costs, fuel cost’s portion increased by 7 points from pervious year to 34%. The number of aircraft in its fleet increased by 25% in 2008 from 102 to 127 aircraft. Parallel to revenue increase, traffic results also increased compared with previous year. Accordingly, number of passenger carried increased by 15% to 22.6 mn, cargo-mail increased by 8% to 203 thousands tons. Available Seat Km (ASK) and Revenue Per Km (RPK) increased by 11% and 13% respectively, which increased the L/F by 1.2 points to 73.9%
The fuel price rose at the peak to around USD 140/barrel in the half of the year from USD 100/barrel beginning of the year but sank to USD 40/barrel at the end of 2008. Although, USD/Ton fuel expense increased by 44% in average, which has resulted $441 mn additional cost, Operating Profit increased by 25% to $488 mn. Other income and expense had been affected negatively by the loss in the assets value, because of the global crises thus, Operational Income declined by %19 to $452 mn. As a result, with 10.3% gross profit margin and 9.6% profit margin stands in good position compared to the industry average. The appreciation of foreign exchange rates had a positive effect on financial income and expenses which had an impact on the Net Income as well.

On the other hand, Turkish Airlines continues with the tender procedure which has started at the beginning of 2008 with the manufacturers Boeing and Airbus for the purchase of 25 firm, 10 optional total of 35 Wide Body Long-Haul aircraft with double aisle and 50 firm, 20 optional total of 70 Narrow Body Medium-Haul aircraft with single aisle according to the fleet plan for 2009 – 2023. Furthermore, purchasing decision of 4 A321-200 aircraft from Airbus has been finalized and aircraft joined the fleet already. In addition, in March 2009 the decision was made to purchase 5 777-300ER aircraft from Boeing to be delivered one aircraft each month starting from October 2010 until February 2011.

Consolidated Financial Results for the full year of 2008
- Net Profit $874mn (+26%)
- Profit Before Tax $1,006 mn (+252 %)
- Operating Revenue $4,719 mn (+26%)
- Assets $5,205 bn (+ 23%)
- Passengers carried 22.6 mn (+15%)

In the light of the above, Turkish Airlines,upholding its ambition of reinforcing global player position in the aviation industry with the help of its strong brands and solid financial base, targeting to mark success in the coming years.