Türk Hava Yollari Anonim Ortakligi (THYAO) Q4 2025 earnings summary

Executive summary

• Navigated a volatile global airline environment in 2025, leveraging a diversified business model and flexible operations to maintain financial discipline and growth.

• Achieved capacity growth of 7.5%, outpacing the industry and surpassing 2019 levels by over 45%.

• Total revenues increased by 11.9% year-over-year in 4Q'25, reaching $6.28 billion, and by 6.3% for the full year to $24.1 billion.

• Net income rose 23.8% year-over-year in 4Q'25 to $883 million, but declined 15.1% for the full year to $2.91 billion.

• Expanded fleet to 516 aircraft, added four new destinations, and maintained leadership in international network reach.

Financial highlights

• Total revenues rose over 6% year-over-year to $24 billion; passenger revenues up 7%.

• Cargo revenues declined 3% to $3.4 billion, while Turkish Technic revenues increased 21% to $2.7 billion.

• Operating profit reached $2.2 billion; net income was $2.9 billion, supported by investment returns.

• Free cash flow to equity reached $3.39 billion in 2025.

• EBITDAR margin at 23.2% in 4Q'25 and 23.7% for the year.

Outlook and guidance

• Forward bookings for 2026 are robust, with both passenger volume and unit revenue above prior year.

• Projected ASK capacity growth of 7%-9% and total revenue increase of 6%-9% for 2026.

• EBITDA expected around $6 billion, with a margin between 22%-24%.

• Ex-fuel CASK expected to rise low to mid-single digits, reflecting inflation and salary adjustments.

• Fuel hedging strategy in place, with 36% of 2026 and 4% of 2027 fuel needs hedged.