(Bloomberg) --

Turkish Airlines became one of the first major carriers to post a profit this year after a boost in freight revenues helped it ride out a continuing passenger slump triggered by the coronavirus crisis.

The Istanbul-based company said it posted first-quarter net income of $61 million, or 438 million liras, even as sales declined, reversing a year-earlier loss and beating analyst estimates.

The carrier tapped into demand for cargo space that has been in short supply during the pandemic with fewer flights eliminating capacity in the holds of passenger aircraft. Foreign-exchange and tax gains also buoyed earnings, while operating expenses for everything from pilot wages to fuel were reduced.

“The increased focus on cargo operations during the pandemic paid off,” said Burak Isyar, head of research at ICBC Turkey Securities.

Turkish Airlines reported a year-earlier loss of $327 million in what’s always a tough period for airlines. Analysts surveyed by Bloomberg had predicted a loss of $6.4 million.

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Quarterly Highlights

Details from an investor presentation posted late Monday:

• Cargo revenues rose 77% to $824 million while passenger revenues fell 55% to $901 million
• Operating expenses declined by almost $1 billion, with fuel costs down 47%, personnel 38% and sales and marketing 42%
• East Asia was the No. 1 revenue provider at 31%. The region is the biggest source of cargo flows to Europe, which have been booming amid a switch to online shopping during lockdowns

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