Türk Hava Yollari Anonim Ortakligi (THYAO) Q4 2024 earnings summary

Executive summary

• Full-year revenue grew 8% to $22.7 billion, with net profit at $3.4 billion, reflecting strong cargo, increased passenger capacity, and global network expansion.

• Passenger capacity exceeded pre-pandemic levels by 35%, and international market share reached 3.4%, making the company the third-largest network carrier globally.

• Cargo operations excelled, with a 35% revenue surge and the company ranking as the world's third-largest air cargo carrier.

• Profit from main operations declined 16% due to cost pressures, but net debt and leverage improved to all-time lows.

• Dividend payments resumed, reflecting confidence in financial strength and commitment to shareholder returns.

Financial highlights

• Total revenues reached $22.7 billion in 2024, up 8.2% year-over-year; passenger revenue grew 4%, cargo revenue rose 34.6%.

• Net profit for 2024 was $3.4 billion, down from $6.02 billion in 2023, with a net income margin at 15.1%.

• EBITDA/EBITDAR margin was 25%–25.3%; free cash flow since 2021 totaled $13.5 billion; liquidity stood at $7.2 billion.

• Net debt improved by over 20% to $5.7 billion, with net debt/EBITDA at 1.1x.

• Dividend payout ratio set at 7.6%, with a $260 million payment.

Outlook and guidance

• 2025 guidance targets 6%-8% increases in passenger capacity and total revenues, with over 91 million passengers expected.

• EBITDA/EBITDAR margin guidance for 2025 is 22%-24%; ex-fuel unit costs expected to rise mid-single digits.

• Net debt to EBITDA ratio projected at 1.1-1.3x, with net debt expected at $6.5-$7 billion.

• CAPEX for 2025 estimated at $4.5 billion, with 70% financed.

• Free cash flow margin expected at 8%-12% and fleet to reach 515–525 aircraft by year-end 2025.