Q1 2025 Turk Hava Yollari AO Earnings Call Transcript
Key Points
- Turk Hava Yollari AO (IST:THYAO) resumed operations to Benghazi and Damascus, expanding its network to 300 international destinations.
- The company achieved a 91% on-time performance, the highest level in two decades.
- Passenger capacity rose by 4.3%, surpassing pre-pandemic levels by more than 40%.
- Turkish Airlines holidays platform went live globally, offering new revenue generation opportunities.
- Successful implementation of Europe's first simultaneous triple runway operations at Istanbul Airport increased air traffic movement capacity by 25%.
- The company faced a $50 million impact from a February snowstorm in Istanbul.
- Profit from main operations was negative $76 million due to inflation and Turkish lira depreciation.
- Approximately 40 aircraft are grounded due to GTF engine issues, affecting capacity.
- High inflation in Turkey led to increased personnel and operating costs.
- The company experienced slower revenue growth and a decline in EBITDAR by 15% year over year.
(Operator Instructions) They are: Associate Professor, Murat Seker, member of the Board and Executive Committee as well as the Chief Financial Officer; and Mr. Mehmet Fatih Korkmaz, Head of Investor Relations. Speakers, it's over to you.
Thank you very much, Rob. Good afternoon, everyone, and thank you for joining us today. Since the beginning of this year, economic uncertainty stemming from the US policy change has added a new layer of complexity to the challenges that our industry is facing processing pressures from geopolitical tensions, aircraft production bottlenecks.
And engine reliability issues are amplified by the unpredictable nature of tariffs and their effects on consumer behaviour.
In this rapidly evolving and volatile operating environment, we are leveraging our capabilities to their full extent while actively countering market overreactions on our share price with our ongoing buyback program.
As you may recall, Turkish Airlines
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