Turkish Airlines' 2012 operating profit almost triples; 2013 more doubtful, with 20% seat growth

In 2012, Turkish Airlines saw its operating profit grow almost threefold, with revenues up 26% on passenger capacity growth of 18%. It has the youngest fleet of any significant network carrier in Europe and its 7.0% operating margin puts it behind only Ryanair and easyJet. This financial success is built on one of Europe's most efficient cost structures and a very productive work force. THY's fleet of 211 aircraft will be expanded by the recently announced order for 117 Airbus narrowbodies to add to existing orders for narrow and widebodies from both Boeing and Airbus.

In 2013, Turkish Airlines plans a further 20% capacity increase in pursuit of its expansion strategy based on increasing transfer traffic and is seeing particularly strong growth on routes to Latin American and Africa this year. It does not expect a unit revenue increase, so CEO Temel Kotil will need to engineer a fall in unit costs if profits are to continue to climb. This will not be easy, given likely fuel cost increases and that 2012 was the only year to see a fall in ex fuel unit costs since 2007.