Türk Hava Yollari Anonim Ortakligi (THYAO) Q2 2024 earnings summary

Executive summary

• Achieved industry-leading profitability in Q2 2024, with total revenues rising 9.9% year-over-year to $5.7 billion and net income up 48.5% to $943 million, despite geopolitical tensions and cost pressures.

• Cargo revenue surged 47.5% in Q2 2024, driven by strong e-commerce activity and sea freight disruptions.

• Recognized with multiple awards, including Best Airline in Europe and Most Sustainable Flag Carrier Airline.

• Expanded global network to 349 destinations, with new routes to Denver and Turin.

• Investment portfolio gains contributed materially to net income.

Financial highlights

• Q2 total revenues rose 10% year-over-year to $5.7 billion; H1 2024 revenues reached $10.4 billion.

• Passenger revenues increased 4% over last year; cargo revenues surged nearly 50% on 30% higher volumes.

• EBITDA reached $1.4 billion with a 24% margin; net income up 49% to over $940 million.

• Operating expenses rose 16% in Q2 2024, with personnel costs up 30.3% and fuel up 15.3%.

• Basic and diluted earnings per share were $0.85, compared to $0.63 in the prior year.

Outlook and guidance

• 2024 guidance: ~10% higher passenger capacity, low single-digit decline in yields.

• Expect revenue to increase 8%-11% and EBITDA margin between 24%-27% for the year.

• Forward bookings are healthy; Q3 passenger revenues expected to be record high.

• Ongoing cost pressures, especially in personnel and ground handling, are expected to persist.

• Fuel hedging strategy in place, with 50% of 2024 needs hedged.