Turk Hava Yollari A.o. · BIST:THYAO
Turk Hava Yollari A.o — Turkish Airlines — 4Q 2024 Earnings Presentation
33 slides from Turk Hava Yollari A.o's earnings presentation, 2025
Slide 1: Turkish Airlines Investor Presentation 4Q'24 Results
Turkish Airlines Investor Presentation 4Q’24 Results
Slide 2: Key Financial Data
Key Financial Data 4Q'23 4Q'24 Change (USD mn) 2023 2024 Change 5,119 5,609 9.6% Total Revenues 20,942 22,669 8.2% 4,141 4,473 8.0% Passenger Revenue 17,727 18,444 4.0% Financial Highlights 787 949 20.6% Cargo Revenue 2,596 3,495 34.6% 156 137 -12.2% Technic Revenue 531 541 1.9% Total Revenues excee
Slide 3: Revenue Development
Revenue Development Revenue Development Revenue Development (4Q’24 vs 4Q’23) (2024 vs 2023) (mn USD) (mn USD) Passenger Passenger RASK RASK Load (Ex-Currency, Cargo and (Ex-Currency, Cargo and Factor Ex-L/F) Load Other Revenue Ex-L/F) Other Revenue Factor Currency (Ex-Currency) +47 Currency (Ex-Curr
Slide 4: Unit Revenue Development
Unit Revenue Development RASK2 (incl. ACTK) (USc) 7.6% 4.1% 7.40 7.79 7.97 7.77 7.79 8.09 4Q'23 4Q'24 4Q'24 ex-currency 2023 2024 2024 ex-currency Passenger RASK (USc) 2.8% 0.1% 7.04 7.07 7.24 7.55 7.26 7.56 4Q'23 4Q'24 4Q'24 ex-currency 2023 2024 2024 ex-currency Revenue Yield (R/Y) (USc) 1.7% 0.6%
Slide 5: Regional Unit Revenue Change in USD (2024/2023)
Regional Unit Revenue Change in USD (2024/2023) Americas AMERICAS Europe EUROPE Far FAREast EAST 4Q 12M 4Q 12M 4Q 12M ASK 12.0% 11.8% ASK 1.3% 1.8% ASK 17.2% 25.7% RASK2 2.5% -2.8% RASK2 4.0% -0.1% RASK2 9.5% 2.3% Passenger RASK -4.9% -8.0% Passenger RASK 2.0% -1.4% Passenger RASK 1.2% -8.2% R/Y -5.
Slide 6: Profit From Main Operations Bridge
Profit From Main Operations Bridge Profit From Main Operations Profit From Main Operations (4Q’24 vs 4Q’23) (2024 vs 2023) Wage and other unit cost increases Revenue Effect -139 mn USD Revenue Effect -1,395 mn USD were significantly higher than the currency benefit Cost Effect +382 mn USD Cost Effec
Slide 7: Operational Expense Breakdown
Operational Expense Breakdown 4Q'23 4Q'24 Change (mn USD) 2023 2024 Change % of Total Costs 1,687 1,378 -18.3% Fuel 6,232 6,163 -1.1% 29.7% 907 1,382 52.4% Personnel 3,256 4,708 44.6% 22.7% 652 686 5.2% Aircraft Ownership1 2,223 2,566 15.4% 12.4% 393 420 6.9% Airports & Air Navigation 1,614 1,735 7.
Slide 8: Unit Expenses
Unit Unit Expenses Cost Breakdown 4Q'23 4Q'24 Change (USc) 2023 2024 Change 2.87 2.18 -24.1% Fuel 2.65 2.43 -8.6% Highlights 1.54 2.18 41.6% Personnel 1.39 1.85 33.6% 1.11 1.08 -2.2% Aircraft Ownership1 0.95 1.01 6.7% Fuel-CASK decreased by 8.6% due to lower fuel prices and jet crack spread. 0.67 0.
Slide 9: Key Performance Indicators
Key Performance Indicators 4Q'23 4Q'24 Change 2023 2024 Change 1,025 797 -22.2% Fuel Price (USD/ton) 969 880 -9.2% Resulting from cargo 3.09 3.11 0.5% Fuel Consumption (lt) per 100 ASK21 3.07 3.11 1.2% load factor increase, (net positive). 1,492 1,544 3.5% Aircraft Ownership Cost per BH2 1,284 1,409
Slide 10: 2025 Expectations and Strategic Priorities
2025 Expectations Passenger Capacity Passengers Strategic Priorities 6-8% increase vs. 2024 91+ million Leveraging our strengths and extracting value embedded in our business model Total Revenues EBITDAR Margin Targeting organic growth opportunities 6-8% increase vs. 2024 22-24% Investing in efficie
Slide 11: 4Q'24 Results
4Q’24 Results
Slide 12: Aviation Industry: Turkish Market Growth
Aviation Industry Turkish Market Growth (mn passengers) Domestic (*) International 194 199 185 158 168 143 140 143 94 134 108 123 103 57 60 32 50 39 45 51 54 56 25 34 2019 2020 2021 2022 2023 2024F 2025F 2026F Source: General Directorate of State Airports Authority (DHMI) – May 2024 (*) Adjusted for
Slide 13: Market Share Development (Passenger)
Market Share Development (Passenger) Turkish Airlines’ market share quadrupled in the last two decades Global Market Share Trends1 (2010-2024) Most market share gaining airline between 2010 – 2024. 4.4% 4.1% 3.4% 2.4% 2.4% 1.5% 1.7% 1.6% 1.1% 1 United 3 American 4 Emirates 8 Qatar 9 Turkish Airlines
Slide 14: World Leading Network
World Leading Network Turkish Airlines ranks #1 in the World by international destinations Turkish Airlines flies to 299 Our network reaches more than 30 New Routes in 2021-24 Provides 52 thousand 501 international destinations international destinations in 90% of the world's population, connection
Slide 15: Highest Connectivity in the EMEA Region
Highest Connectivity in the EMEA Region Turkish Airlines offers the most diverse set of flight itineraries with minimum detour1 Top Airlines by Connectivity Detour Advantage3 Transit Connection Time Number of International City Pairs2 (hour) 2013 03:39 Europe to the World 1. Turkish Airlines ~17,800
Slide 16: Istanbul's Geographical Advantage - A Natural Hub
Istanbul’s Geographical Advantage - A Natural Hub Within Narrow Body Range 100 countries / % of the World 4 bn people / 50% 36.5 tn USD GDP / 35% 28.5 tn USD Trade Volume / c.60% Europe Leveraging Istanbul’s Ideal Geographical Location with a Population: 740 mn Modern Fleet. GDP: 25.5 tn USD Trade V
Slide 17: Passenger Traffic and Breakdown
Passenger Traffic and Breakdown Number of Passengers (mn) Passenger Capacity and Load Factor 2.1% 83.4 85.2 81.6% 80.6% 82.6% 82.2% 400 ,000 90. 0% 74.3 71.8 71.0% 67.9% 350 ,000 80. 0% 254 300 ,000 70. 0% 235 53.0 54.6 202 60. 0% 44.8 250 ,000 43.8 46.3 200 ,000 188 50. 0% 28.0 128 40. 0% 24.6 150
Slide 18: Revenue Breakdown (2024)
Revenue Breakdown (2024) Revenues (bn USD) Revenue by Business Type Technic Other 8.6% 2024: 2.4% 2024: 0.8% 22.7 2023: 2.5% 2023: 0.4% 20.9 Cargo 18.4 3.5 15% 2.6 3.7 12% 13.2 1.7 10.7 6.7 4.0 17.7 18.4 14.3 2023 11.2 2.7 85% 6.4 3.8 81% Passenger 2019 2020 2021 2022 2023 2024 2024 Passenger Cargo
Slide 19: Operating Efficiency
Operating Efficiency Passenger Aircraft Average Daily Flight Utilization1 (hrs) 14:48 14:44 14:15 13:30 12:40 11:42 11:43 10:48 10:50 11:59 07:26 08:19 10:27 10:21 09:44 06:28 07:14 06:02 2019 2020 2021 2022 2023 2024 WB Long-Haul NB Medium-Haul Total Number of Personnel 63,455 55,884 16,663 37,517
Slide 20: Operational Profitability and Leverage
Operational Profitability and Leverage Avg. EBITDAR Margin (2019-2024): 28% 35.0% 29.2% 29.0% 27.7% 29. 0 23.5% 25.3% 30. 0% 24. 0 20. 0% 19. 0 10. 0% 0.0 % 14. 0 20.9 22.7 18.4 -10.0% 9.0 13.2 10.7 -20.0% 6.7 4.0 -30.0% -1.0 -40.0% 2019 2020 2021 2022 2023 2024 Revenue (bn USD) EBITDAR Margin Net D
Slide 21: Fleet
Fleet Fleet as of 31.12.2024 # of New Financial Opr./Wet Seat Capacity Average Fleet 31.12.2024 Type Total Owned Generation Lease Lease ('000) Age Aircraft A330-2/3 49 20 14 15 14.1 12.4 B777-3ER 34 14 13 7 12.2 11.3 168 (34% of total) Wide Body A350-9 24 24 7.8 1.9 B787-9 23 23 6.9 3.7 Total 130 34
Slide 22: Turkish Cargo Overview
Turkish Cargo Overview Market Share Development (FTK)1 Overview Global Ranking Flies to 133 countries / 369 destinations with 24 freighters 5. 5. 4. 3. and 468 passenger aircraft as of December 2024. 14. 0 8. 5.7% 7.0 % 5.2% 5.2% 5.2% Ranks 3rd globally in terms of market share1 in 2024. 4.7% 6.0 %
Slide 23: AJet – A New Growth Platform
AJet – A New Growth Platform Increased Focus on International Operations 2019 2023 2024 Number of Aircraft 31 91 119 Number of Routes 129 177 160 International Share of its 13.3% 61.3% 60.4% Capacity1 (%) Int’l Market Share2 in 18% 25% 23% Istanbul Sabiha Airport Number of Passenger 14.6 20.9 21.4 (
Slide 24: Currency Exposure (2024)
Currency Exposure (2024) Revenue by Currency Diversified revenue base increases our ability to adapt to different macro economic conditions. JPY Other 1.4% 1.0% TRY Regional revenue distribution provides a natural hedge against FX volatility as well EUR Cor.1 10.1% as geopolitical risks. USD 7.7% 37
Slide 25: Fuel Expense Bridge and Hedging
Fuel Expense Bridge and Hedging Fuel Expense Bridge (4Q’24 & 2024) Effect of Hedging on Fuel Price 145 Volume Hedging Price THY Price (USD per barrel) 135 +11 125 +85 -405 115 105 95 Current fuel 85 hedging 1,687 Fuel Expense (-18.3%) 1,378 75 levels: Break-even price: 2025: 41% 65 75 USD 55 45 4Q’2
Slide 26: Aircraft Financing and Debt Management
Aircraft Financing and Debt Management 5 Year Maturity Profile (mn USD) Weighted Average Interest Rate2: 2.83% As of 31.12.2024 Total Financial Lease Liabilities1: 9.7 bn USD Operating Leases: 2.8 bn USD 1,844 Fixed 1,601 1,553 35% 406 370 334 1,196 1,123 323 285 1,438 Floating 1,231 1,220 65% 873 8
Slide 27: EBITDAR Calculation
EBITDAR Calculation 4Q'23 4Q'24 Change EBITDAR (mn USD) 2023 12M'24 Change 5,119 5,609 9.6% Sales Revenue 20,942 22,669 8.2% 4,308 4,722 9.6% Cost of Sales (-) 16,060 18,347 14.2% 811 887 9.4% GROSS PROFIT / (LOSS) 4,882 4,322 -11.5% 119 178 49.6% General Administrative Expenses (-) 449 564 25.6% 44
Slide 28: Operational Expense Breakdown
Operational Expense Breakdown (mn USD) 2023 % in Total 2024 % in Total Change Fuel 6,232 34.1% 6,163 29.7% -1.1% Personnel 3,256 17.8% 4,708 22.7% 44.6% Landing, Navigation & Air Traffic 1,614 8.8% 1,735 8.4% 7.5% Landing and navigation 896 4.9% 936 4.5% 4.5% Air Traffic Control 718 3.9% 799 3.9% 11
Slide 29: Income Statement
Income Statement YoY (mn USD) 2019 2020 2021 2022 2023 2024 Change Operating Revenue 13,229 6,734 10,686 18,426 20,942 22,669 8% Operating Expenses (-) 12,644 7,264 9,411 15,710 18,269 20,749 14% of which Fuel 3,873 1,638 2,756 6,467 6,232 6,163 -1% of which Personnel 2,067 1,097 1,298 2,140 3,256 4
Slide 30: Balance Sheet
Balance Sheet Assets (mn USD) 2019 2020 2021 2022 2023 2024 Cash and Cash Eqv. & Short-Term Financial Investments 2.475 1.829 2.682 4.701 6.027 6.067 Trade Receivables 540 637 925 995 856 905 Pre-delivery Payment (PDP) Receivables 778 731 546 511 305 837 Other Current Assets 977 981 785 1.018 1.407
Slide 31: Subsidiaries & Affiliates
Subsidiaries & Affiliates Revenue Number of 31.12.2024 Field of Activity Partnership Structure (mn USD) Personnel Turkish Airlines 1, 2 Transportation 22,669 34,974 49.1% Türkiye Wealth Fund - 50.9% Open to Public 1 Türk Hava Yolları Teknik A.Ş. (Turkish Technic) MRO - 11,818 100% Turkish Airlines 2
Slide 32: Investor Relations
INVESTOR RELATIONS e-mail: ir@thy.com
Slide 33: Disclaimer
Disclaimer Türk Hava Yolları A.O. (the “Incorporation” or ‘’Turkish Airlines’’) has prepared this presentation for the sole purpose of providing information about its business, operations, operational and financial results. The information in this presentation is subject to updating, revision and am