Türk Hava Yollari Anonim Ortakligi (THYAO) Q2 2025 earnings summary

Executive summary

• Navigated a challenging environment with geopolitical tensions, macroeconomic uncertainties, and supply chain constraints, while maintaining strong international passenger demand and operational agility.

• Total revenues increased by 5.6% year-over-year in Q2 2025, driven by strong passenger demand and seasonality, while cargo revenues declined due to global freight softness.

• Net profit for the first half of 2025 was $647 million, down from $1,169 million year-over-year, impacted by currency effects and higher tax expenses.

• Expanded strategic partnerships, including a joint business agreement with Thai Airways and a regional engine maintenance hub with Rolls-Royce.

• Recognized as Europe's best airline by Skytrax for the 10th time and received awards for sustainability-linked financing.

Financial highlights

• Q2 2025 total revenues were $5,980 million (+5.6% YoY); H1 2025 revenues reached $10,867 million (+4.2% YoY).

• Net income for Q2 2025 was $691 million (-26.7% YoY); H1 2025 net profit was $647 million (-44.7% YoY).

• Passenger revenues rose 7.4% YoY in Q2 2025; cargo revenues declined 9.4% YoY to $800 million.

• EBITDA margin was 26% for Q2 2025; EBITDAR margin at 25.4% in Q2 2025.

• Free cash flow more than doubled YoY to $1.2 billion; liquidity increased to $7.7 billion.

Outlook and guidance

• 2025 passenger capacity expected to rise 7–8% vs. 2024, with over 91 million passengers targeted.

• Total revenues projected to grow 6–8% in 2025; EBITDAR margin guidance at 22–24%.

• Ex-fuel unit cost to see mid-single-digit increase; fleet to reach 520–525 aircraft by year-end.

• Expecting low single-digit ex-fuel cost increases in 2025, with moderating inflation in Turkey supporting cost normalization.

• The group expects to utilize government investment incentives of $4,344 million within 1–5 years.