Turkish Airlines (THY) aims to expand its fleet to 530 aircraft by the end of 2025, despite delays in aircraft deliveries and Pratt & Whitney’s GTF engine issues. As of 2023, THY boasts a large fleet of 474 aircraft and plans to grow this number to 493 by the end of the year and reach 530 by the end of 2025, marking a 7-8% increase.
At the third-quarter financial results meeting on November 5, THY Chief Financial Officer Murat Şeker discussed fleet growth plans, supply chain issues, and geopolitical developments. Şeker noted that the fleet will include wide-body aircraft as well as cargo planes, such as those for low-cost carrier AJet. He also mentioned that with the end of the Boeing strike, there is now greater clarity on the delivery process.
GTF Engine Issues and Compensation
Due to problems with Pratt & Whitney’s geared turbofan (GTF) engines, THY has grounded 42 aircraft, a number expected to rise to 45 by the end of the year. These issues are projected to persist significantly through 2025. To address losses caused by these engine issues, THY reached an agreement with Pratt & Whitney and began receiving compensation payments.
These engine problems have led to a significant increase in THY’s non-fuel costs and highlighted the importance of maintenance and repair activities. The company is prioritizing its own fleet over serving external customers, mitigating supply chain disruptions through its integrated business model.
THY’s Third-Quarter Financial Performance and Rising Cargo Revenue
In the third quarter of 2023, THY transported 24.5 million passengers, with total revenue rising 4.9% year-on-year to $6.6 billion. Net profit for the period was reported at $1.3 billion, with cargo revenue experiencing significant growth. Cargo operations grew by 47% year-on-year to reach $911 million, making THY the world’s third-largest air cargo carrier with a 5.7% market share.
Although rising competition and the rapid recovery of other airlines have placed pressure on THY’s profit margins, international passenger capacity increased by 5.4%. The company is continuing to enhance operational efficiency by focusing more on maintenance and repair efforts.
Impact of Geopolitical Developments on THY
CFO Şeker also addressed the effects of increasing military tensions in the Middle East and the Russia-Ukraine conflict on the company. Operating flights to 40 destinations in the Middle East, THY has suspended flights to Tel Aviv and Beirut due to the military situation, reducing its capacity in the region by 20% and revenue by 30%.
THY’s New Flight Destinations: Sydney, Lima, and Cambodia
THY continues to expand its international network by adding new destinations. With strong performance on routes such as Denver, Detroit, and Melbourne, the airline plans to launch flights to Lima, Peru in June 2025, followed by Phnom Penh, Cambodia. Additional destinations like Sydney and Santiago de Chile are also expected to be added to THY’s route network.
THY’s Complex 2025 Budget Preparations
Considering geopolitical risks and aircraft delivery delays, the 2025 budget preparation process for THY is becoming quite complex. The company faces various challenges in defining its operational and financial targets for the coming year.
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