Türk Hava Yollari Anonim Ortakligi (THYAO) Q2 2026 earnings summary

Executive summary

• Navigated a challenging quarter with Middle East conflict, airspace closures, and elevated fuel prices, leveraging a diversified business model and flexible global network.

• Total revenues for 2Q'26 rose 20.5% year-over-year to $7.2bn, with 1H'26 revenues up 20.8% to $13.1bn, driven by strong passenger and cargo demand.

• Net income for 2Q'26 dropped 71.5% year-over-year to $197mn, with 1H'26 net income down 34.6% to $423mn, reflecting higher costs and lower operating profit.

• Maintained operational continuity by reducing Middle East capacity, reallocating resources to high-demand routes, and implementing tactical commercial strategies.

• Total assets increased to $50,671 million from $46,603 million at year-end 2025, with equity rising to $21,919 million.

Financial highlights

• Passenger revenues reached $5.7bn in 2Q'26, cargo revenues $1.3bn, and technic revenues $149mn.

• EBITDA/EBITDAR for 2Q'26 was $906mn (12.6% margin), down 41% year-over-year due to higher fuel costs.

• Net income margin for 2Q'26 was 2.7%, down from 11.6% in 2Q'25.

• Free cash flow of $250 million generated in the quarter; free cash flow to equity for 1H'26 was $979mn.

• Passenger flight liabilities increased by 40% to $4.2 billion, reflecting higher ticket sales and fares.

Outlook and guidance

• Q3 passenger capacity expected to rise 3%-6% year-over-year, with mid-teen revenue growth and EBITDA margin guidance of 20%-25%.

• Full-year network capacity growth targeted at 4%, with yield improvement of 6%-7%.

• High yield environment expected to persist through year-end, though visibility remains limited.

• Direct sales ratio increased by 14.2 percentage points, reducing distribution expenses.

• The Group is closely monitoring the impact of Middle East conflicts on fuel prices and regional operations, with ongoing risk management actions.