Turkish Airlines reports surprise loss; long-haul boosts Iberia’s traffic results


Turkish Airlines was flat for Thursday (11-Nov-2010), despite reporting a net loss of TRY22.7 million (EUR11.6 million) in the three months ended 30-Sep-2010, despite a 19.8% year-on-year increase in revenue to EUR1294 million. The carrier transported 24.5 million passengers in the first nine months of 2010, an increase of 17.3%.

  • Turkish Airlines reports a net loss of TRY22.7 million in Q3 2010 despite increased revenue.
  • Analysts suggest fleet revaluation and rising fuel costs as possible reasons for the loss.
  • Iberia shows improvement in load factor for October 2010, driven by long-haul operations.
  • Long-haul traffic and revenues increase for Iberia, resulting in improved load factor.
  • European capacity remains stable with a slight decrease in traffic, leading to a steady load factor.
  • Dart Group and Aegean Airlines experience gains, while Eurofly and British Airways face declines in share prices.

The loss was a surprise to analysts, which stated fleet revaluation and increasing fuel costs may be responsible. Turkish stated in Aug-2010 that an increase in oil prices had lifted its jet fuel costs by 64%.

See related CAPA Profile: Jet Fuel

Long-haul operations boost Iberia's traffic results

Iberia (-2.3%) declined despite reporting a 2.4 ppt year-on-year improvement in load factor for Oct-2010 to 83.0%. The improvement was the result of a 9.3% rise in traffic (RPKs) on the back of a 6.2% increase in capacity (ASKs). The carrier stated unit revenue continued to rise, despite the growth of the average stage length (7.3%).

It attributed the results to an improvement in long-haul traffic and revenues. Long-haul traffic rose by 14.8%, while capacity increased by 11.9%. Consequently, load factor improved by 2.1 ppts to 85.0%.

European capacity increased by 0.7% (the lowest monthly decrease in the past two years) and traffic went down by a similar proportion (-0.8%); resulting in a stable load factor of 80.3%.

Domestic load factor was up 7.0%, reaching 78.6%, with drops of 1.8% in traffic and 10.6% in capacity. The load factor increased in all sub-segments, highlighting the routes between Madrid and Barcelona with a 14.2 ppt improvement in the load factor and 4.4% in traffic.

See related CAPA Profile: Traffic and Capacity

Elsewhere, Dart Group (+3.9%) and Aegean Airlines (+1.4%) were among the few gainers for the day. Eurofly (-4.1%) and British Airways (-3.2%) slumped.

Europe selected airlines daily share price movements (% change): 11-Nov-2010

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