Türk Hava Yollari Anonim Ortakligi (THYAO) Q1 2026 earnings summary

Executive summary

• Net profit reached $226 million in Q1 2026, reversing a $44 million loss in Q1 2025, with comprehensive income at $508 million.

• Revenue rose 21% year-over-year to $5.9 billion, driven by strong passenger and cargo demand.

• Passenger numbers increased by 12.7% to 21.3 million, with load factor up 2.7 points to 83.5%.

• Cargo revenue surged nearly 30%, benefiting from global supply chain disruptions.

• Senior management changes ensured continuity in strategic direction.

Financial highlights

• EBITDAR was $769 million, up 16% year-over-year, with a margin of 13%.

• Net income margin improved to 3.8% from -0.9% in Q1'25.

• Free cash flow was $768 million, and liquidity rose to $9.4 billion.

• Net debt increased to $8.4 billion due to fleet investments and currency impacts.

• Operating expenses rose 17.7%, mainly from personnel and fuel costs.

Outlook and guidance

• Capacity growth for Q2 projected flat to up 2%, with ex-fuel unit costs expected to rise 10%-14%.

• EBITDAR growth for Q2 expected between 2%-8%, with full-year outlook highly uncertain due to geopolitical and fuel price volatility.

• 38% of 2026 fuel needs hedged; management closely monitoring Middle East conflicts and fuel price risks.

• Long-term growth plans target a fleet of over 800 and $50 billion revenue by 2033.

• Ongoing digital transformation and IFRS 18/19 implementation planned for 2027.