Flynas (4264) investor relations material

Executive summary

• Unaudited results for the three- and six-month periods ended 30 June 2026 were reviewed by PwC with no material misstatements identified.

• Revenue grew 6% year-over-year to SAR 4.22 billion in 1H 2026, driven by higher unit revenues despite a 15% reduction in capacity due to regional conflict disruptions.

• Net loss for the six months was SAR 122.7 million, a significant improvement from SAR 714.6 million loss in the prior year, but higher fuel costs and reduced capacity continued to weigh on results.

• Maintains strong liquidity with SAR 3.7 billion in cash and SAR 782.2 million in undrawn credit facilities; net debt-to-adjusted EBITDA at 1.7x.

• Proactive capacity management and disciplined pricing helped offset the impact of higher fuel prices and network suspensions.

Financial highlights

• Six-month revenue rose to SAR 4.22 billion, up from SAR 3.97 billion year-over-year.

• Net loss for the six months was SAR 122.7 million, with a 2Q 2026 net loss of SAR 241 million.

• Gross profit for the six months was SAR 373.4 million, down from SAR 865.9 million year-over-year; gross profit margin fell to 1.2% in 2Q 2026 from 21.1% a year earlier.

• Basic and diluted loss per share for the six months was SAR 0.72, compared to SAR 4.58 in the prior year.

• Adjusted EBITDA declined 45% year-over-year to SAR 761 million in 1H 2026 (margin 18.0%).

Outlook and guidance

• Management expects current disruptions from fuel price volatility and airspace restrictions to be temporary, with capacity restoration beginning in July 2026.

• Full-year 2026 guidance remains suspended due to regional volatility; 3Q 2026 indicators suggest low- to high-single-digit revenue growth and EBITDA margin in the mid-teens to mid-20s.

• Forward-looking cash flow forecasts indicate sufficient liquidity under adverse scenarios.

• Six new aircraft deliveries expected in 2H 2026, supporting future growth.