Turkish Airlines (THY) reported Wednesday a sharp decline in second-quarter net profit as soaring jet fuel prices and higher operating costs weighed on earnings despite double-digit revenue growth and resilient passenger demand.
The national flag carrier posted a net profit of $197 million for the April-June period, according to its financial results, well below analysts' consensus estimate of about $248 million and down 71% from a year earlier.
The aviation industry has been hit by soaring jet fuel prices as the war in the Middle East rumbles on, disrupting supplies of petrochemical products down the key Strait of Hormuz.
Turkish Airlines' revenue rose 21% year-over-year to $7.2 billion, slightly exceeding market expectations of $7.1 billion, supported by higher passenger yields and robust cargo demand.
Passenger numbers remained broadly unchanged from a year earlier at 23.2 million, while passenger revenue increased 15% to $5.7 billion.
