Aug. 27 (Bloomberg) -- Turkish Airlines said second-quarter profit fell 29 percent because of the lira’s depreciation against the dollar and the euro, missing analysts’ estimates, while sales grew 20 percent.
Turkey’s flag carrier, formally known as Turk Hava Yollari AO, had net income of 143.5 million liras ($70.6 million) in the quarter, down from 200.9 million liras a year earlier. The average of 11 analyst estimates compiled by Bloomberg was for 287.1 million liras. Sales rose to 4.6 billion liras in the second quarter from 3.84 billion liras a year ago.
The Istanbul-based carrier, which has ordered 117 Airbus SAS and 95 Boeing Co. single-aisle jets since 2012, plans to double its fleet and expand its route network. The airline will increase transit traffic to 70 percent of the international total by 2020 from about 40 percent and more than double the number of passengers it carries to 100 million, Chief Executive Temel Kotil said in May 10 interview.
Ekspres Invest said there was “a slowdown” in passenger growth in July because of a negative effect of the timing of Ramadan, which was earlier this year.
“We expect this to be compensated through record figures seen in August,” Ekspres said in an e-mailed note. “Solid top-line and profitability growth is likely to extend into the third quarter.”
The stock fell as much as 4.8 percent to 7.1 liras in Istanbul and was down 2.1 percent to 7.3 liras at 12:16 p.m. local time.
The company booked 153 million liras in financial losses due to the lira’s depreciation against the dollar and euro in the second quarter, compared 257 million liras in gains a year earlier, Ekspres Invest said.
The company’s seat occupancy rate, or load factor, rose two percentage points to 78.9 percent. The load factor is forecast at 78.8 percent for this year.
Turkish Airlines aims to carry 46 million passengers this year, compared to 39 million in 2012, according to company forecasts. Sales are forecast at $9.7 billion, compared with $8.3 billion in 2912 and fuel costs are seen at $3.7 billion.
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