Turkish Airlines experienced its first loss-making quarter since the first half of 2021 in the first three months of 2025, as high inflation and a weak local currency combined with the impact of a February snow storm to weigh on its earnings.
The airline stated during an earnings call on 29 April, however, that the timings of Easter and the Ramadan holiday mean the second quarter of the year will put the business back in line with its 2024 performance at the half year stage, aided by lower fuel prices. And it insists its first-quarter performance was in line with guidance.
The operator also says it has been implementing a share buyback programme, “countering market overreactions” relating to concerns over the impact on travel demand of political unrest, inflation and currency weakness in Turkey.
Still, Turkish warns of a “new layer of complexity to the challenges that our industry is facing”, thanks to the trade policies of the Trump Administration in the USA, even if it is not seeing any significant impact on bookings from that development yet.
It further cites geopolitical tensions, aircraft production issues and engine reliability challenges as being among the issues “amplified” by tariffs.
Turkish swung to an operating loss of $76 million in the first quarter and a net loss of $44 million, on revenue up 2.5% – the slowest rate of year-on-year growth in the post-Covid era – at $4.9 billion.
Snow storms in Istanbul in February had a $50 million hit on the carrier’s earnings, while high inflation pushed up personnel and operating costs, the airline says.
Turkish says it is maintaining its guidance of 6-8% passenger capacity growth this year, with flat yields.
Some 40 of its aircraft are grounded owing to Pratt & Whitney GTF engine issues, but it expects that figure to fall to 30 later in the year and to stay at that level in 2026.
