ISTANBUL: Turkish Airlines’ first-quarter losses more than doubled, hit by higher fuel prices and other costs.
The Turkish flag carrier, which operates flights to 306 destinations in 124 countries, reported a loss of 1.25 billion lira or $229 million in the first quarter, compared with a loss of 314 million lira or $86 million in the same period a year earlier.
Analysts said the loss was wider than an average forecast of a 662 million lira loss. That reflected higher oil prices due to currency volatility and increased unit costs due to staff and marketing expenses, analysts said.
“Net loss is even way higher than the lowest estimate in the street,” Yatirim Finansman Securities said in a note, adding a loss on fixed asset sales also weighed on the results.
But the carrier maintained its targets for the year, suggesting an expected recovery in the high season that starts at the end of May, J.P. Morgan said.
The company said it targets revenue of $14.1 billion and an EBITDAR margin of 22-24 percent at the end of this year. It also aims to carry 80 million passengers this year.
The airline moved its hub last month from Istanbul’s old Ataturk Airport to the new Istanbul Airport to the north of the city. Completing the hub move ahead of the high season is expected to help the company achieve its targets, J.P. Morgan said.
Shares in Turkish Airlines were down 1.04 percent in early trade, while the BIST 100 Index was trading almost flat.
Turkish Airlines’ quarterly loss more than doubles on higher costs
Turkish Airlines’ quarterly loss more than doubles on higher costs
- The Turkish flag carrier, which operates flights to 306 destinations in 124 countries, reported a loss of 1.25 billion lira or $229 million in the first quarter
- The carrier maintained its targets for the year, suggesting an expected recovery in the high season that starts at the end of May
Closing Bell: Saudi main index climbs to 10,485
RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Sunday, gaining 34.32 points, or 0.33 percent, to close at 10,484.59.
The total trading turnover of the benchmark index stood at SR2.59 billion ($690 million), with 168 listed stocks advancing and 87 declining.
The Kingdom’s parallel market Nomu also gained 100.37 points to close at 23,454.65.
The MSCI Tadawul Index advanced by 0.13 points to 1,377.44.
The best-performing stock on the main market was Nama Chemicals Co., whose share price increased by 9.98 percent to SR22.38.
The share price of Al Masar Al Shamil Education Co. rose by 9.15 percent to SR23.85.
Saudi Paper Manufacturing Co. also saw its stock price climb by 8.42 percent to SR57.95.
Conversely, the share price of Canadian Medical Center Co. dropped by 6.37 percent to SR6.03.
The stock price of Kingdom Holding Co. also declined by 3.16 percent to SR8.28.
In the parallel market, Alfakhera for Mens Tailoring Co. was the top performer, with its share price advancing by 16.40 percent to SR8.80.
On the announcements front, Theeb Rent a Car Co. said it had signed a long-term vehicle leasing services contract valued at SR110.4 million with Hungerstation Co.
Under the deal, Theeb will lease 2,000 vehicles to HungerStation for a period of four years starting from 2026, according to a Tadawul statement.
The statement added that the vehicles will be delivered in batches within the first six months from the contract start date, taking into consideration global logistical circumstances and procedures beyond the control of both the agents and the company.
The contract is expected to have a positive impact on the company’s financials from the first quarter of 2026.
The share price of Theeb Rent a Car Co. declined by 0.79 percent to SR37.80.
