Turkish Airlines makes $197m profit as Middle East war hits costs

Dubai: Turkish Airlines remained profitable in the second quarter despite the impact of the Middle East war and sharply higher jet fuel prices, but the conflict continued to weigh on the carrier’s costs.

The airline reported a net profit of $197 million for the three months to June, while its EBITDAR margin came in at 12.6 per cent — above its 8 per cent guidance, though fuel costs remain a key pressure on performance.

Revenue rose 20.5 per cent year-on-year to $7.2 billion, helped by strong passenger demand and a surge in cargo income.

However, Turkish Airlines said the impact of the Middle East war was “reflected noticeably” in its second-quarter financial results because of the delayed effect of higher jet fuel prices on costs.

The airline expects that pressure to continue into the third quarter, although it is forecasting a significantly stronger EBITDAR margin of 20 per cent to 25 per cent.

Turkish Airlines Chairman of the Board and the Executive Committee, Prof. Murat Şeker, said: “Despite the uncertainty caused by geopolitical developments in the Middle East and the sharp increase in fuel prices, we have successfully managed this challenging period, as we have in previous crises.”

“This was made possible by our extensive flight network, diversified business model and agile operational capabilities,” he said.

Şeker said the airline had also continued to implement efficiency initiatives across its operations while maintaining disciplined cost management.

Cargo boom cushions fuel pressure

One of the biggest gains came from Turkish Cargo, which benefited from pressure on global air freight capacity caused by geopolitical developments in the Middle East.

Cargo revenues jumped 58 per cent year-on-year to nearly $1.3 billion, while cargo volumes increased 11.3 per cent.

Turkish Airlines said its geographical position and cargo infrastructure allowed Turkish Cargo to respond to the stronger demand.

Passenger demand also remained resilient.

The passenger load factor — the proportion of available seats filled — rose 1.8 percentage points to 84 per cent, the highest second-quarter level in the airline’s history.

Demand was particularly strong from Asia, Europe and Africa.

Bigger fleet, bigger cost exposure

Despite the uncertainty, Turkish Airlines continued to expand.

Its fleet grew 14 per cent year-on-year to 552 aircraft at the end of June, even as the airline faced bottlenecks in aircraft production.

The carrier invested $3.1 billion during the first half of 2026 as part of what it described as selective investments aligned with its strategic priorities.

The expansion means the airline is continuing to add capacity at a time when geopolitical uncertainty and fuel prices are creating a more challenging operating environment.

Turkish Airlines’ consolidated total assets stood at $51 billion, while employment across the airline and its subsidiaries exceeded 101,000.

The airline is betting that strong passenger and cargo demand will continue to offset higher fuel prices.

It expects an EBITDAR margin of 20 per cent to 25 per cent in the third quarter, compared with 12.6 per cent in the second quarter.