Good News for Aviation - Beating analyst estimates , Turkish Airlines Posts first-quarter profit of $61 million , thanks to freighters !

Freighters did it All !

After posting a $836m net loss for the year 2020 due to the crisis in pandemic, One of the major carriers, Turkish Airlines has posted a  net profit for the First quarter of 2021, as freight revenues surge.

• Operating expenses declined by almost $1 billion.
• Fuel costs down 47%, employees cost down 38% and sales and marketing expenditure down by 42%.
• Cargo revenues rose 77% to $824 million while passenger revenues fell 55% to $901 million.
• At 31%, East Asia became the No. 1 revenue provider with cargo flows to Europe.

The flag bearer of Turkey said,  it registered a first-quarter net income of $61 million (438 million liras) , beating analyst estimates.

As for the cargo revenue, which is 46% of the total revenue, it posted a 77% increase compared to the same period in 2020.

Passenger capacity decrease remained an woe !

In the January-March period that saw a 48% decrease in its passenger capacity, Turkish Airlines carried a total of 6.4 million passengers with 74% load factor at domestic flights and 61% load factor at international flights.

On the financial results, Turkish Airlines CEO Ilker Ayci said,

"As the pandemic process continues with devastating effects on the global aviation industry, this performance can only be described as 'coming through with flying colors'."

Apart from the Freight boost, the airlines got benefitted from the  employees wages reduction and low fuel prices. The carrier also got some help from Foreign-exchange and tax gains to achieve the terms of profit.