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Turkish Airlines profit triples, will invest $3.74 billion

Staff writer |
Turkish Airlines posted a 2014 net profit that almost tripled and unveiled plans to invest $3.74 billion, partly financed by a bond issue.

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Turkish Airlines net profit rose to 1.82 billion lira ($739 million) from 683 million lira. Sales rose 29 percent to 24.1 billion. The airline and its subsidiaries planned around $3.74 billion in new investment this year, most of it on increasing its 261 fleet of aircraft.

Chairman Hamdi Topcu told a news conference that the company was in the final stages of a planned bond issue to diversify its sources of aircraft financing and that the issue was expected to be completed in the first half of the year.

The bond would be at least $500 million and could reach a volume of $2-3 billion with a maturity of up to 14 years, Chief Financial Officer Coskun Kilic said, adding that it would be used to finance existing aircraft as well as new planes.

Topcu said Turkish Airlines was in the early stage of talks with Malaysia Airlines over leasing aircraft. He said the carrier would need larger Boeing 747-8 and Airbus A380 aircraft in the future but no management decision had yet been taken.

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