According to the statement made by Turkish Airlines on the Public Disclosure Platform (KAP), the company’s consolidated net profit increased to 6 billion 931 million Turkish Lira in the first quarter of the year.
The summary consolidated interim financial position statement of Turkish Airlines Inc. and its subsidiaries as of March 31, 2024, was shared with the public. The statement includes details about the company’s assets, liabilities, and equity.
In the assets section, the company’s total assets as of March 31, 2024, were determined to be 36,113 million USD. These assets include financial investments, tangible and intangible fixed assets, right-of-use assets, and other current assets.
In the liabilities and equity section, the paid-in capital, treasury shares, items that will not be reclassified and may be reclassified to profit or loss, long-term liabilities, and short-term liabilities are detailed.
The company’s net profit for the period was announced as 226 million USD. Cash flows from operations and financing activities are also included in the report.
Turkish Airlines (THY) Announces Subsidiaries and Activities
Turkish Airlines (THY) disclosed the financial status and activities of its subsidiaries and joint ventures for the three-month period ending on March 31, 2024. This disclosure provides a detailed overview of an important period in THY’s consolidated financial statements.
Status of Subsidiaries:
THY’s subsidiaries include companies such as Turkish Technic, TAFA, THY International Investment and Transport Inc., Turkish Technology, Widect, TSS, THY Special Security and Protection Services Inc., AJET, and TKPAY. THY owns 100% of most of these subsidiaries, and they are based in Turkey.
Status of Joint Ventures:
THY’s joint ventures include companies such as Sun Express, TEC, Turkish DO&CO, TFS Fuel Oil, THY Opet, TGS, and Goodrich. The control of these joint ventures is based on agreements between THY and other shareholders.
Presentation and Basis of Financial Statements:
THY’s financial statements are prepared and consolidated in accordance with IAS 34. The functional currency of the business is USD, and adjustments have been made for subsidiaries operating in hyperinflationary economies in accordance with IAS 29.
Accounting Policies and Changes:
THY’s accounting policies are established and disclosed in accordance with predefined standards and updates. Significant estimates and assumptions are used in line with the financial statements dated December 31, 2023.
Investments in Joint Ventures Accounted for Using the Equity Method:
THY’s investments in joint ventures accounted for using the equity method and the financial status of these investments are detailed.
Segment Reporting:
The main activities of the Group are summarized as aviation and technical maintenance services. The performance of these segments and the allocation of resources play a significant role in decision-making.
The Company Announced Its Financial Report: Evaluation of the Performance in the First Quarter of 2024
The company announced its financial report for the first quarter of 2024. The report examines the company’s cash position, financial investments, loans, and relationships with related parties in detail.
Cash and Cash Equivalents: The company’s cash and cash equivalents were recorded as 841 units as of March 31, 2024. This represents a decrease compared to the same period last year.
Financial Investments: The company’s financial investments decreased slightly to 4,825 units as of March 31, 2024, compared to the previous period. These investments include protected deposit accounts, stocks, and investment funds.
Loans: The company’s short-term and long-term loans show a decrease in short-term loans but stability in long-term loans as of March 31, 2024. The detailed analysis in the report includes the maturity structure and interest rates of the loans.
Relationships with Related Parties: The company’s relationships with related parties are also addressed in the report. Commercial transactions, receivables, and payables with other companies are examined in detail. Additionally, benefits provided to board members and the details of relationships during this period are included.
Other Receivables: Other receivables from third parties increased as of March 31, 2024, compared to the previous period. These receivables include pre-delivery payments for aircraft, receivables from technical purchases, and bank deposits with transfer restrictions.
According to company officials, the report is generally positive, indicating stable performance in profitability and financial solidity. Information about the company’s future strategies and targets is expected to be shared soon.
Details of the Company’s Financial Condition and Asset Management Revealed
Recently published financial reports provide significant insights into the financial condition and asset management strategies of an airline company. The deferred revenues and details of real estate and equipment present an interesting picture.
Increase in Deferred Revenues
As of March 31, 2024, the company’s deferred revenues were recorded at 3,631 units. A large portion of this amount comes from passenger flight obligations, showing a significant increase compared to December 31, 2023. There was also an increase in other short-term deferred revenues during the same period.
Details of Real Estate and Equipment Revealed
Details of the company’s real estate and equipment portfolio were disclosed in the March 31, 2024 report. The costs and net book values of assets such as land improvements, buildings, technical equipment, and aircraft are revealed.
Details on Leasing Obligations and Pension Liabilities
The company’s leasing obligations and pension liabilities are also included in the report. Especially noteworthy are the estimated amounts for future minimum lease payments and interest rates and the pension liability.
Asset Management Strategies and Financial Performance Are Evaluated
The company’s asset management strategies and financial performance continue to be carefully evaluated with the financial reports. Investors and industry experts focus on understanding how the company progresses on a solid foundation and its potential for future growth.
Revenue Increase and Changes in Stakeholder Structure Observed in Turkish Airlines’ 2024 Financial Report
According to Turkish Airlines’ financial report for 2024, the company saw an increase in revenue and some changes in the stakeholder structure.
Revenue Increase:
The company’s revenue for 2024 saw a significant increase. Under the heading of passenger revenue, the total planned and unplanned revenues increased compared to last year. Cargo revenues also saw a notable rise.
Geographical Distribution:
When examining passenger and cargo revenues by geographical regions, it was observed that revenues from Europe, Asia, and the Far East stood out. Significant revenues were also generated from the Americas, the Middle East, and Africa.
Expenses and Stakeholders:
The main items in the company’s expenses include fuel, personnel, and service costs. However, an increase in personnel and service costs was observed compared to previous years.
Changes in stakeholder structure were noted in the ownership percentages of Turkey Wealth Fund and other public shareholders. It is suggested that these changes may affect the strategic management of the company.
Income and Expenses from Investment Activities:
Income and expenses from investment activities significantly affect Turkish Airlines’ financial situation.
Here are the details for the first quarter of 2024:
Income:
Interest Income from Financial Investments: Recorded at 241 units for the period of January 1 – March 31, 2024, compared to 75 units in the same period of the previous year. Income from Investment Incentives: Income from investment incentives in the first quarter of 2024 was 51 units, compared to 49 units in the previous year. Gains from the Sale of Financial Investments: A gain of 17 units was recorded for the period of January 1 – March 31, 2024, compared to 16 units in the same period of the previous year. Gains from the Sale of Fixed Assets: Only a gain of 1 unit was recorded in the first quarter of 2024, compared to 11 units in the same period of the previous year.
Total income for the first quarter of 2024 was 310 units, compared to 151 units in the same period of the previous year.
Expenses:
Losses from the Sale of Financial Investments: Only 2 units of loss were recorded in the first quarter of 2024, compared to 12 units in the same period of the previous year.
Total expenses for the first quarter of 2024 were 2 units, compared to 12 units in the same period of the previous year.
Financial Income and Expenses:
Details of Turkish Airlines’ financial income and expenses are as follows:
Income:
Interest Income: Recorded at 63 units for the period of January 1 – March 31, 2024, compared to 79 units in the same period of the previous year. Foreign Exchange Gains from Financial Activities: Recorded at 60 units in the first quarter of 2024, compared to 55 units in the same period of the previous year. Fair Value Gains from Derivative Financial Instruments: No net value was recorded for the period of January 1 – March 31, 2024, but a gain of 180 units was recorded in the same period of the previous year. Other: Total other income was recorded at 72 units in the first quarter of 2024, compared to 41 units in the same period of the previous year.
Total income for the first quarter of 2024 was 195 units, compared to 357 units in the same period of the previous year.
Expenses:
Foreign Exchange Losses from Financial Activities: Recorded at 149 units for the period of January 1 – March 31, 2024, compared to 188 units in the same period of the previous year. Interest Expense on Lease Obligations: Recorded at 126 units in the first quarter of 2024, compared to 81 units in the same period of the previous year. Other: Total other expenses were recorded at 2 units in the first quarter of 2024, compared to 33 units in the same period of the previous year.
Total expenses for the first quarter of 2024 were 379 units, compared to 322 units in the same period of the previous year.
Tax Assets and Liabilities:
Turkish Airlines’ tax assets and liabilities are as follows:
Prepaid Taxes: Recorded at 38 units as of March 31, 2024. Corporate Tax Bonds: Recorded at 53 units as of March 31, 2024. Prepaid Taxes and Funds: Recorded at (-17) units as of March 31, 2024. Corporate Tax Liability: Recorded at 36 units as of March 31, 2024.
© www.aerohaber.com | www.tr.aerohaber.com
Note: Aviation news on our news site cannot be used without citing the source
