National flag carrier Turkish Airlines saw a 12% increase in its net profit in 2019, supported by a stronger-than-expected fourth-quarter performance and compensation for grounded and undelivered Boeing 737 MAX aircraft.
The carrier said Friday its net profit rose to TL 4.54 billion in 2019, up from TL 4.04 billion a year earlier.
THY’s net income beats the highest estimate in a Bloomberg survey of 17 analysts. The profit was said to be boosted by TL 1.07 billion in “insurance compensation and fine income.”
Revenues were also up by 19.5% to TL 75.1 billion, from some TL 62.85 billion a year earlier.
THY and Boeing in late December reached an agreement over compensation for financial losses caused by the crisis around Boeing 737 MAX airplanes. The 737 Max has been grounded since March after two crashes in Indonesia and Ethiopia killed 346 people within five months.
Currently, 24 of THY's aircraft are grounded, with 12 of them stationed in Seattle. The company is also awaiting the delivery of 75 more Boeing 737 Max jets.
The carrier expects as much as $14.8 billion in sales throughout this year, up from $12.3 billion in 2019.
It carried over 74.3 million passengers in 2019, a year that witnessed major developments such as a grand switch to Istanbul Airport in April and 737 MAX grounding. The number of passengers was 1.1% lower compared with 2018 when it served a total of 75.1 million passengers.
Turkish Airlines aims to carry 78 million to 80 million passengers in 2020, mostly on international routes.
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