Turkish Airlines reports unexpected third quarter loss
Turkish Airlines surprised investors by revealing a third-quarter loss on Thursday of USD22.7 million, related to fleet revaluations. Third quarter revenue rose in line with market expectations, surging 19.8% year-on-year.
Passenger numbers in the first 10 months of 2010 are up 17.3% to 24.5 million.
The airline stated: “With the new wide body aircraft, which were started to join our fleet in September, we will be able to increase the business class segment which will increase the revenue yields. In the mean time we will be able to increase our cargo network in the long haul as well as cargo revenue because of the widebody aircraft.”
The airline added that 2010 financial and operational results have exceeded expectations and a “good indicator for us to achieve our 2011 growth target”, concluding, “we are eager to continue to apply our long term growth strategies without making any concession on our profits”.
Last week, Turkish confirmed plans to increase Istanbul-Washington DC frequency from four to seven times weekly in the “near future” and announced plans to increase Istanbul-Johannesburg-Cape Town frequency from four to five times weekly, effective 17-Jan-2011. The carrier resumed four times weekly Istanbul Sabiha Gokcen-Moscow Domodedovo on 01-Nov-2010 using B737-800 equipment, operated by subsidiary AnadoluJet.
Elsewhere, it was a mixed day for European airline stocks, with SAS falling 1.6% and Finnair gaining 0.4%.
Europe selected airlines daily share price movements (% change): 12-Nov-2010
Source: Centre for Asia Pacific Aviation, Yahoo! Finance & Reuters