Turkish Airlines revised yearend passenger targets down

ISTANBUL - Reuters

DHA photo

Turkey’s national carrier has revised its yearend passenger and load factor targets down on Sept. 19, after it did the same for its yearend revenue expectation last month. 

Turkish Airlines revised its yearend passenger number from 63 million to 61.7 million and load factor from 80.3 to 78 percent, according to its revised targets released in a written statement to the Public Disclosure Platform (KAP) last weekend. 

The company closed 2014 with 54.7 million passengers and 78.9 percent in load factor. 

Turkish Airlines revised its yearend revenue forecast from $12 billion to $11 billion in August as further pressure was expected over revenue due to currency fluctuations in August. 

The company’s passenger numbers rose by 11.7 percent to 40.7 million in the first eight months of the year compared to the same months of 2014. Its load factor was announced at 78.8 percent by a 0.8 percent of decrease from the same period of the previous year. 

Despite a rise in the passenger traffic, the company has seen a limited rise in its revenue as the largest passenger traffic rise was seen in domestic flights and transit routes, where profit margins are low. 

Oyak Yatırım said a downward revision in the company’s yearend passenger traffic was already expected after its revision on its yearend revenue in an assessment note. 

In this vein, the company’s shares were not affected negatively after its latest revision announcement. 

Turkish Airlines said it expects a high demand in the third quarter due to two religious holidays in the country. It also expects a decrease in the negative pressure over its revenue due to currency fluctuations in the second half, as it had earlier said. 

The company announced its total airplane target of 299 for the yearend.