Turkish Airlines reports significant drop in net profit

Mar 24, 2011, 12:38 GMT

Istanbul - Turkish Airlines, Turkey's national flag carrier, reported a sharp year-on-year decrease in net profit for 2010, despite strong growth in passenger numbers, according to figures the airline released Thursday.

Turkish Airlines reported net profits of 286 million lira (184.4 million dollars) for 2010, down almost 50 per cent from 559 million lira in 2009.

It was the second straight year of decreased profits for the airline, whose 2009 profits were down 51 per cent from the previous year.

The company, which is one of the fastest growing airlines in the world, said in its statement Thursday that it had 'increased its capacity in line with its growth strategy for 2010 and the years ahead.'

The airline said passenger numbers had increased by 16 per cent since 2009, to 29.1 million, while transport of cargo and mail increased 32 per cent year-on-year.

The decrease in profits appeared to be a result of increased costs, particularly the price of fuel, and an aggressive expansion and advertising strategy the airline has followed in recent years.

Turkish Airlines has increased its international destinations from 79 to 131 since 2005 to form a network that now includes 82 countries in addition to 41 cities in Turkey.

Recent advertising campaigns for the airline have featured high- profile celebrities including Kobe Bryant and Kevin Costner.

The airline, which says it has the youngest fleet in Europe, also has plans to increase its fleet size from 155 aircraft to between 180 and 200 this year, chairman Hamdi Topcu announced in January.

In April 2008, the airline became a member of the Star Alliance, the world's largest airline network, which includes Lufthansa and United Airlines.

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