Flynas (4264) Q2 2026 earnings summary

Executive summary

• Revenue grew 3% year-over-year in 2Q 2026 to 2.2 bn and 6% to 4.22 bn in 1H 2026, despite a 15% capacity reduction and a 27% drop in passenger volumes due to higher fuel costs and regional conflict disruptions.

• Net loss was 241 mn in 2Q 2026 and 123 mn for 1H 2026, reflecting elevated fuel costs and reduced capacity.

• Strong liquidity maintained with 3.7 bn in cash and SAR 782.2 mn in undrawn credit facilities at quarter-end.

• Network expanded with new bases and resumed GCC routes, while capacity was managed down to protect profitability.

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

Financial highlights

• Adjusted EBITDA for 2Q 2026 was 205 mn (down 73% year-over-year), and 761 mn for 1H 2026 (down 45%), with margins of 9.2% and 18.0% respectively.

• Adjusted net loss in 2Q 2026 was 241 mn, and 123 mn for 1H 2026; gross profit margin fell to 1.2% in 2Q 2026 from 21.1% a year earlier.

• RASK rose 22% year-over-year in 2Q 2026, offsetting some volume declines.

• Adjusted CASK rose 48% year-over-year in 2Q 2026 due to higher fuel costs and lower capacity.

• Cash balance at quarter-end was 3.7 bn, down 11% year-to-date and 18% year-over-year.

Outlook and guidance

• FY 2026 guidance remains suspended due to ongoing regional volatility and limited visibility.

• 3Q 2026 revenue growth expected in the low- to high-single digits year-over-year, with EBITDA margin in the mid-teens to mid-20s.

• Capacity restoration began in July 2026, with six new aircraft deliveries expected in 2H 2026.

• Management expects current disruptions from fuel price volatility and airspace restrictions to be temporary.

• Assumptions include no further escalation of regional disruption and jet fuel price at ~$145/barrel.