Turkish Airlines (#THYAO) delivered a strong financial performance to its investors by closing 2024 with a 22% return. In the first 20 days of 2025, the stock price increased by 8.8%. While the growth in revenue and equity paints a positive picture, the pressure on profit margins does not go unnoticed.
Pricing Near Year-End Highs
THYAO stock closed 2024 at 305.75 TL, demonstrating a performance close to the peak levels of the past year. Short- and medium-term technical indicators predominantly signal a buying trend for the stock.
International Markets Drive Revenue Growth
In the first nine months of 2024, Turkish Airlines increased its gross sales by 53.83%, reaching 551.9 billion TL. Domestic sales rose by 68.97%, while international sales grew by 51.77%.
With 88.79% of total revenue derived from exports, the company’s strong presence in international markets stands out. Meanwhile, a 82.02% increase in other revenue streams supports income diversification. However, the fact that sales costs grew by 67.67%, surpassing revenue growth, is noteworthy.
Profit Margins Under Pressure
In the first nine months of 2024, THY’s gross profit grew by 16.29%, reaching 112.3 billion TL. However, net operating profit fell by 6.62% to 56.1 billion TL. The operating margin weakened, dropping to 9.02% year-on-year. Financing expenses surged by 359.75%, putting pressure on profitability. Despite this, net profit increased by 27.81%, reaching 88.8 billion TL, driven by income from investment activities.
Strong Growth in Equity
The company’s total assets rose by 42.44% in the first nine months of 2024, reaching 1.35 trillion TL. Equity increased by 80.20% to 618.6 billion TL, while total liabilities grew by 21.1%, reaching 734.9 billion TL. The debt-to-equity ratio decreased to 118.82, indicating a more sustainable financial structure. However, the net debt position climbed to 282.2 billion TL, suggesting that the company’s impressive performance is supported by rising borrowing costs.
Technical Indicators and Expectations
The stock is trading above its short- and medium-term moving averages, signaling a buy according to technical indicators. MACD and stochastic oscillators also support a buying position. However, with the RSI approaching the overbought zone, a short-term correction may be likely. Insufficient confirmation from trading volume remains a key factor for the stock’s potential upward movement in the future.
Targeting 500 TL in 2025
Starting 2024 at around 220 TL, THYAO reached a peak of 330 TL in May before entering a correction phase and falling to 260 TL levels. In the final quarter of the year, the stock fluctuated between 280-310 TL and sustained its upward momentum above 300 TL as 2025 began.
Analysts have set a target price of 500 TL for THYAO stock in 2025. With factors supporting revenue and equity growth throughout the year, THYAO is likely to remain on investors’ radar.
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