Flynas Company SJSC: Off the 2Q26 Call

Research evidence excerpt

M

Update

August 5, 2026 02:32 PM GMT

Flynas Company SJSC | Europe

Morgan Stanley & Co. International plc+

Ricardo Rezende, CFA

Equity Analyst

Off the 2Q26 Call

Giulia Faro

Research Associate

Bottom line: mixed. The call centered on 3Q visibility, recovery of the fuel shock

through pricing and restored capacity, the timing of renewed hedging, and the shift

toward aircraft ownership. Management said July was encouraging and in line with

Sylvia C Richards

Research Associate

plan, with higher ASK and load factor expected to support a materially better 3Q

Flynas Company SJSC (4264.SE, FLYNAS AB)

result than the SAR241m loss in 2Q. However, FY26 guidance remains suspended,

EEMEA - Transport | Saudi Arabia

hedging has not resumed, and visibility still depends on regional security, fuel and

US$145/bbl and targets low-to-high single-digit revenue growth with an EBITDA

Stock Rating

Industry View

Price target

Shr price, close (Aug 4, 2026)

52-Week Range

Mkt cap, curr (mn)

Net debt (12/26e) (mn)*

EV, curr (mn)*

margin in the mid-teens to mid-20s; management expects a significantly better net

* = GAAP or approximated based on GAAP

crack spreads, and competitor capacity behavior.

Guidance & 3Q visibility. Management said July trading was encouraging and

tracking the operating plan. The 3Q framework assumes jet fuel of approximately

Equal-weight

No Rating

SAR 68.00

SAR 49.52

SAR 81.70- 48.20

SAR 8,462

SAR 3,067

SAR 11,513

result than in 2Q. FY26 guidance will be reinstated once regional visibility improves.

Fuel cost & RASK. Management framed the 22% increase in RASK as a 5.4-halalas

unit-revenue uplift against approximately 6 halalas of fuel-driven CASK inflation,

representing roughly 90% recovery of the fuel increase. The quarter carried

SAR388m of additional fuel cost while ASK was 15% lower, and management said

the financial outcome would have been worse without the capacity reduction. Full

recovery requires restored ASK to be sold at higher load factors - but that would

likely pressure fares.

Capacity & demand normalization. Management said ASK had returned toward

prior-year levels in July and that the plan to increase capacity and load factor was

working.…