Turkish Airlines’ financial performance has resulted in a profit in the first quarter of 2024. In the three months up to 31st March 2024, the airline made a net profit of 226 million US dollars. This is a reduction when compared to the same time in the previous year by 3% when the company made a profit of 233 million US dollars.
Nevertheless, the company still made a profit which is good news for the company. This follows on from a profitable year end, where the company made over two times the profit made in the previous year well as a profitable third quarter.
In terms of revenue Turkish Airlines’ financial performance resulted in a figure of 4.769 billion US dollars which is 9.6% higher than the 4.353 billion US dollars made in the three months up to 31st March 2023. This indicates Turkish Airlines is becoming more popular with customers. The fact that Turkish Airlines’ revenue has increased by 9.6% whereas profit has fallen by 3% indicates the fact that cost control has become an issue over the past year.
Quadrupled Market Share
In terms of the market share, which essentially means the proportion of customers that come to Turkish Airlines when compared to others, the airline has improved by 4 times in the last two decades. This is a considerable achievement given the fact that the pandemic has affected all airlines and many airlines have been set back heavily during the pandemic.
As we know during the pandemic, governments around the world introduced restrictions to international travel so demand for flights slumped affecting Turkish Airlines’ financial performance with all other airlines. Even when restrictions were lifted airlines suffered because there were staff shortages as many had been laid off during the pandemic when demand was less. As a result there were flight delays and cancellations due to congestion at airports with mandatory restrictions hampering financial recovery.
Expanded Network
Even though Turkish Airlines did suffer during the pandemic, it has recovered well now ranking also as number one in terms of the number of international destinations offered. In addition, the company has also gained a reputation for its environmental credentials for being one of the early adopters of Sustainable Aviation Fuel. The airline has also been credited for offering the most number of destinations with either direct flights or with fewer changes. The new route to Melbourne in Australia has also brought the sixth continent of Australasia into Turkish Airlines’ network.
As one can see the airline has expanded and also improved in popularity. However Turkish Airlines’ financial performance has not improved over the past year. Nevertheless, the airline was still profitable in this quarter. We have to wait to see how this progresses.