Türk Hava Yollari Anonim Ortakligi (THYAO) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 19.3% YoY to $8.298bn; profit from main operations fell 12.3% to $929mn and net income declined 6.4% to $1.290bn.

• 9M revenue increased 20.2% to $21.420bn, while profit from main operations dropped 52.2% to $808mn and net income fell 15.4% to $1.713bn.

• Q3 capacity rose 3.2% YoY; 28.5mn passengers and an 87% load factor marked quarterly highs, while cargo volume grew 7.4%.

• Higher fuel prices and inflation compressed Q3 EBITDAR margin by 4.2 pp to 25.4%; investment portfolio contributions supported earnings.

Financial highlights

• Q3 passenger revenue rose 15.4% to $6.801bn and cargo revenue increased 45.6% to $1.230bn; total revenue was $8.298bn.

• 9M passenger revenue grew 16.5% to $17.188bn and cargo revenue rose 44.6% to $3.484bn.

• Q3 EBITDAR was $2.104bn, up 2.4% YoY, with a 25.4% margin; 9M EBIT was $1.124bn, down 43.5%, and EBITDA fell 15.8% to $3.153bn.

• 9M investment activities net income increased 74% to $1.494bn; financial expense rose 10% to $1.095bn and financial income fell 48% to $355mn.

• Q3 fuel expense rose 59% to $2.6bn; 9M fuel expense increased 56.4% to $6.929bn, with hedging reducing the 9M increase by $196mn.

Outlook and guidance

• FY2026 capacity growth is expected at 3.5%-4%, below the initial ~10% plan; Q4 guidance included 1%-3% capacity growth, mid-teens revenue growth and 5%-10% EBITDAR margin.

• Q&A also cited Q4 expectations of 2%-3% capacity growth, 10%-11% revenue growth and 6%-10% EBITDAR margin; ex-fuel unit costs may rise mid-to-high single digits.

• Q4 bookings remain healthy; October-November demand is seasonally softer, with a December pickup expected.

• 2027 ASK growth is expected at 5%-6%; fuel planning scenarios include ~$1,000 and ~$1,200 per ton.

• Fuel hedging coverage was 50% for 2026 and 12% for 2027; the following month may be hedged up to 60%, subject to market conditions.