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 Q2 2026 rose 20.5% year-over-year to $7.2 billion, with 1H 2026 revenues up 20.8% to $13.1 billion, driven by strong passenger and cargo demand.

• Net income for Q2 2026 was $197 million, down 71.5% year-over-year, and 1H 2026 net profit was $423 million, reflecting higher costs and lower operating profit.

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

• Achieved strong passenger and cargo demand, with notable market share gains and resilience in premium cabins.

Financial highlights

• Passenger revenues reached $5.7 billion in Q2 2026, cargo revenues $1.3 billion, and technic revenues $149 million.

• EBITDA/EBITDAR for Q2 2026 was $906 million (12.6% margin), down 40% year-over-year due to higher fuel costs.

• Free cash flow of $250 million generated in Q2; 1H 2026 free cash flow to equity was $979 million.

• Cash and cash equivalents at period end were $1,678 million, with liquidity at $9.6 billion.

• Total borrowings and lease liabilities increased to $21,407 million.

Outlook and guidance

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

• Full-year network capacity growth plan revised to 4%, up from earlier guidance but still below budget.

• Hedging covers 48% of 2026 fuel needs, with a layered strategy to manage price volatility.

• High yield environment expected to persist through year-end, with 6%-7% yield improvement and 3% capacity growth anticipated.

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