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Fuel costs and Middle East disruption pressure Asian and Turkish airlines as Pegasus wins approval for Smartwings acquisition

Pegasus, Philippine Airlines and Thai Airways reported weaker second-quarter or first-half earnings as elevated fuel costs and Middle East-related disruption weighed on results. Separately, Turkish regulators approved Pegasus’ acquisition of Smartwings Group, expanding its European footprint amid a more challenging operating environment.

Discovered 2026-08-12T12:28:09.620949-07:00 | 2026-08-12T12:28:09.620949-07:00

Briefing

What Hype is tracking

Higher fuel costs and Middle East disruption are directly weakening airline profitability: Philippine Airlines swung to a $25.1 million first-half loss from a $136.7 million profit, while Pegasus and Thai Airways also reported material earnings pressure.
Pegasus’ approval to acquire Smartwings Group, including Czech Airlines and Smartwings, signals continued cross-border consolidation and a potential expansion of Pegasus’ European network and competitive position.
The results show how geopolitical disruption can affect both traffic and costs: Pegasus’ international passengers fell 11%, while reduced tourism to Turkey and weaker Middle East connectivity compounded the fuel impact.

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