Turkish Airlines announces over a billion in profits

The airline has announced it has surpassed one billion dollars in profits for the first time since its launch.

2 min read

01 March, 2016

The airline is expected to grow further this year with an extra 40 planes [Getty]

Turkey's flag carrier Turkish Airlines had made a profit of over $1 billion for the first time in its history as the fast-growing airline battled to overcome the crises hitting its region.

Turkish Airlines said it posted $1.069 billion (980 million euros) net profits for last full year, an increase of 26.5 percent from the figure of $845 million from 2014.

But the company says it was hit with a 5.0 per cent drop in sales compared with 2014. The airline posted a small operating loss for the fourth quarter of $50 million.

The airline said it surpassed the tough year marked with "political and economic instabilities over its operating environment and significant currency fluctuations."

"Turkish Airlines has reinforced its position among the most profitable airlines with these financial results recorded in this challenging year," said board chairman Ilker Ayci.

Militant groups have repeatedly attacked the country in recent months, causing a dent in its tourism industry.

Turkish Airlines has grown exponentially in the last decade.

Figures show 14.1 million passengers used the airline in 2005 and increased to 61.2 million passengers in 2015.

The airline forecasts further growth for this year, expecting to carry 72.4 million passengers to destinations with future routes ranging from Hanoi to Mexico City.

It operated 299 planes at the end of 2015 -- a figure expected to rise to 339 in 2016.

The airline’s expansion plans include a building for a new hub airport for Istanbul to replace the increasingly overcrowded Ataturk International.

President Recep Tayyip Erdogan, an enthusiastic supporter of the airline, has described the plan as a key project for his "new Turkey".

The first phase of the new airport is expected to open in February 2018, according to transport Minister Binali Yildirim

The government used to entirely control Turkish Airlines but share offerings over the last decade have reduced its stake to 49 percent.

The airline said it is now considered Turkey's biggest generating over $7 billion of exports with more than 70 percent of its ticket sales being made abroad.