Meeting Notes-THY (Tacirler Yatırım )

Operational performance overshadowed by personnel expenses… Turkish
Airlines' 1Q24 financial results showed a net profit of 6.9 billion TL, below the
market expectation of 7.6 billion TL, and EBITDA came in at 15.5 billion TL, 20%
below the market expectation of 19.5 billion TL. Personnel expenses, which
increased by 138% in TL terms to 28.1 billion TL, put pressure on net profit and
EBITDA. Revenue generation, on the other hand, was in line with market
expectations at 147.2 billion TL compared to the expected 146.5 billion TL. Apart
from operational activities, income from investment activities amounting to 9.6
billion TL and deferred tax income of 1.8 billion TL supported the net profit.
Limited growth in passenger revenues due to weakening unit passenger
yields despite increased passenger traffic... In the first quarter of 2024, the
number of passengers carried increased by 8.4% year-on-year to 18.5 million.
During this period, the passenger load factor decreased by 90 basis points yearon-year from 81.3% to 80.4%. Unit passenger yields (RASK) fell by 5.7% in USD
terms from 7.4 USc to 6.98 USc year-on-year, leading to a limited growth of
72% in passenger revenues despite a roughly 55% increase in unit passenger
yields in TL terms.
Strong growth in cargo and technical revenues... In the last quarter of 2023,
geopolitical risks in the Red Sea region led to an increase in cargo demand. In
the first three months of 2024, cargo tonnage carried reached 478 thousand
tons, a 35% increase year-on-year. Cargo revenues reached 23.2 billion TL, a
108% increase year-on-year. Technical revenues reached 4.4 billion TL, a 120%
increase year-on-year.
Expectations for 2024... The company expects to have an operational
performance in 2024 like that of 2023, but projects that the CASK (cost per ASK)
excluding fuel could increase in low single digits in USD terms due to global
inflation. The company has hedged 47% of its jet fuel costs. The EBITDAR
margin expectation for 2024 is planned to be between 23% and 25%.


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