The global aviation sector is leaving behind the biggest crisis in its history with the heaviest losses that spanned over 18 months.
During these difficult times, Turkish Airlines managed to wrap up the third quarter of 2021 with 722 million USD real operating profit and 735 million USD net profit despite the effects of the crisis caused by the Covid-19 pandemic.
The total revenue of the company during the third quarter of 2021 was at 3.4 billion USD, 85 percent of the same period of 2019. As for the cargo revenue which is 28 percent of the total revenue, it recorded a 132 percent increase compared to the same period in 2019.
Despite all the difficulties affecting the demand due to the crisis, the flag carrier managed to limit its operational loss with the steps taken to lower the costs, resulting in a 19 percent decrease in total expenditures during the third quarter of 2021 compared to the same period of the 2019. As a result, EBITAR (earnings before interest, taxes, amortization, and rent), which shows the cash generation potential of the company, was at 1.387 billion USD, a 7 percent increase compared to the same period of 2019. The EBITAR margin increased by 8.3 points compared to last year and became 40.7 percent.
During the third quarter of 2021 which saw the global carrier reaching 81 percent of its Q3 2019 passenger capacity, Turkish Airlines carried a total of 16.5 million passengers with a 82.4 percent load factor on domestic flights and 69.6 percent load factor on international flights. The flag carrier strengthened its identity as a global airline with its wide flight network, strong frequencies, and superior hygiene standards. With this identity, the global carrier managed to successfully transfer its capacity from suspended routes to profitable ones. As of the end of September, the flag carrier possessed a fleet of 372 aircraft, 243 narrow-body and 105 wide-body, along with 24 cargo aircraft.
As Europe’s leader in terms of flights operated during 2020, Turkish Airlines maintained its leading position during the first nine months of 2021. The flag carrier managed to turn the crisis into an opportunity by focusing on cargo transportation and making several passenger aircraft in its fleet available for Turkish Cargo. According to the August 2021 data, the global carrier became the fourth biggest air cargo carrier in the world.
Turkish Cargo saw its revenues increase by 45% in the third quarter of the year, helping the overall airline beat pre-pandemic performance.
The cargo business reported cargo revenues of $969m for the period, compared with $668m last year.
The increase mostly came from a recovery in its passenger flying which saw cargo revenues increase by 174% to $307m, while freighter revenues improved by 19.1% to $662m.
Performance would also have been boosted by a recovery in overall cargo demand and higher freight rates.
Alongside its fully utilised freighter fleet, the airline is deploying around 15 widebody passenger aircraft for cargo operations.
That is five more aircraft than it was flying in the second quarter.
Meanwhile, the overall airline reported operating profit that was 9% higher than pre-crisis 2019 levels at $697m for the third quarter. Net profit was 12% above pre-crisis 2019 levels at $735m.
Employing approximately 60 thousand people combined with its subsidiaries, Turkish Airlines continues to proudly fly its flag among the giants of air transportation as the brand that steers its sector with its unparalleled flight network, modern fleet, outstanding cargo performance and successful crisis management. With the end of the pandemic and consequent rise of aviation, the flag carrier airline will increase its pace towards the summit of the sector and will continue to produce added value for the country and aviation sector with an effort greater than any before.
