Here at Turkish Airlines it gives us pride and pleasure to have completed another successful year. We continue to move forward with sure steps towards our goals in 2006 with the strength we derive from you, our passengers.
Our financial results for 2005 are the best expression of our success: sales revenues up by 11 percent, pre-tax profit up by 65 percent, and net profit up by 29 percent. These results are also an indicator that Turkish Airlines is achieving its targets as a result of the correct decisions taken. Boosting profitability on the one hand while making serious investments and preserving a high standard of quality on the other prove the success of Turkish Airlines, which has high hopes for the future and envisions even further positive developments in 2006. A closer look at the results for 2005 reveals that seat capacity rose by 17 percent on the same period the previous year while seat occupancy increased by 1.3 points. Meanwhile a gradual rise in oil prices over the year drove our fuel expenditures up by 41 percent.
Our Company, which has always been extremely sensitive to the issue of flight safety, has once again demonstrated its success in that area, recently passing all the requisite inspections to become the first IOSA (IATA Operational Safety Audit)-registered airline in Turkey. Cognizant of its responsibility as Turkey’s flagship carrier, Turkish Airlines regards flight safety and quality service as the two sine qua non’s of airline operations, and is therefore expending even greater efforts in these areas. While boosting our profitability on the one hand we are also continuing to add new routes to our flight network. As of April and May, you can now fly direct with Turkish Airlines’ confidence to seven major cities around the world: Dublin (Ireland), Riga (Latvia), Addis Ababa (Ethiopia), Khartoum (Sudan), Ekaterinburg (Russian Federation), Dnepropetrovsk (Ukraine), and Mumbai (India). Here at Turkish Airlines we believe that we are fulfilling an important mission through these flights, which we hope will strengthen the bonds of friendship and brotherhood as well as fostering economic and cultural relations between countries. We continue to operate in the highly competitive aviation sector without compromising our quality in any way. Our current fleet of 89 aircraft is slated to increase to one hundred by the end of summer, enabling us to further expand our market share to the Far East and the Indian sub-continent, regions to which we are giving more importance. As we never tire of saying, our historic mission compels us to be ‘different’ in every way. Providing better service to you and offering you the highest level of flight safety and comfort is therefore our loftiest aim.
Turkish Airlines has been flying the skies for 73 years, with the support of you, our esteemed passengers. I hope that this 73rd anniversary of our company, Turkey’s proud flagship carrier, will be an auspicious one for you, our distinguished passengers, as well as for our valuable employees and our entire country. At the time, I wish all of you a happy Youth, Sports and Atatürk Remembrance Day on 19th May, and a pleasant flight.
Temel KOTİL, Ph.D.
CEO and Member of the Board