Turkish Airlines Announces Q2 2025 Financial Results

Balanced Financial Performance Without Surprises

Turkish Airlines Inc. (THYAO), Turkey’s flag carrier, publicly disclosed its Q2 2025 financial results. Evaluating the report, Info Investment Securities stated that the results “contained no surprises.”

In Q2 2025, revenue rose 26.5% year-on-year to TRY 231.3 billion, while EBITDA increased 35.2% to TRY 46.1 billion. Net profit came in at TRY 26.8 billion, impacted by tax expenses.

For the first half of the year, THY’s revenue grew 23.6% to TRY 408 billion, and EBITDA increased 13.5% to TRY 56.2 billion. However, unlike the TRY 4.5 billion tax income recorded in H1 2024, a TRY 4 billion tax expense in H1 2025 caused net profit to decline 33% to TRY 25 billion.

Cargo Revenues Decline, Passenger Segment Shows Strong Performance

One of THY’s key business lines, cargo transportation, was affected by weak global demand. By Q2 2025, cargo revenues had fallen 9.4%, and on a six-month basis, they were down 4.3%.

Conversely, passenger and technical revenues showed robust growth. In Q2, passenger revenues rose 7.4% and technical revenues 31.4%. On a six-month basis, passenger revenues increased 5.3% and technical revenues 14.4%.

While operating profit remained flat over the six-month period, it increased 19.5% in Q2 thanks to easing cost pressures.

Lower Fuel Prices Provided Cost Relief

According to Info Investment, falling fuel prices provided significant relief on the cost side.

• Personnel expenses rose 26.4% in USD terms, due to capacity growth and exchange rate effects.

• Fuel expenses declined 10.9% thanks to lower oil prices.

• Ground handling costs increased 8.8%, airport & overflight fees 13.9%, passenger services & catering 18.7%, maintenance 21.9%, and other expenses 18.3%.

• Aircraft ownership costs fell 0.6%, and sales & marketing expenses declined 6.1%.

Unit cost (CASK), a key cost-performance indicator, rose 0.4% year-on-year, while ex-fuel CASK increased 7.7%. The rise was mainly due to higher personnel costs and aircraft grounded by GTF engine issues. On a quarterly basis, however, CASK decreased 2.4%, while ex-fuel CASK rose 3.5%.

2025 Outlook Largely Maintained

After Q2 results, THY broadly maintained its 2025 guidance, with minor revisions in passenger capacity and fleet size:

• Passenger capacity growth expectation revised from 6–8% to 7–8%.

• Targeted passenger numbers exceed 91 million by year-end.

• Total revenue growth projected at 6–8%.

• Ex-fuel CASK expected to show mid-single-digit growth.

• Year-end EBITDAR margin guidance maintained at 22–24% (H1 2025: 20.2%).

• Fleet size expected to reach 520–525 aircraft (previous guidance: 515–525).

Assessment: Steady and Controlled Growth

According to Info Investment, the financial results indicate that Turkish Airlines continues its steady growth, though the contraction in cargo revenues warrants close monitoring.

Falling fuel costs supported profitability, while strong growth in passenger revenues is expected to have a continued positive impact on the balance sheet in the coming periods.

THY aims to expand its fleet, increase passenger capacity, and boost total revenues in 2025, underscoring its sustained competitiveness on a global scale.