This study determined the economic effects of avian influenza on the egg-production sector of Afyon Province, Turkey. Economic indicators were compared before and during the avian influenza outbreak. A questionnaire was conducted with 75 poultry farmers. Farms were divided into three groups according to their size. The profitability of the three farm size groups was compared during two study periods: before and during the avian influenza outbreak. The results indicate that, as compared to previous levels, farms experienced significantly reduced incomes during the avian influenza episode. While net income and profit margin were found to be negative in all three farm groups during the avian influenza period, only group I showed economic loss prior to avian influenza. Average net income per group was -19,576.14, -39,810.11, and -112,035.33 YTL respectively during the avian influenza outbreak, compared with prior incomes of -5,665.51, 8,422.92, and 16,3873.71 YTL (1 USD=1.43 YTL). The profit margin per egg during avian influenza was -0.029, -0.016, -0.010 YTL in group I, II, III, respectively, as compared to -0.007, 0.003, and 0.014 YTL/egg before avian influenza. It was found that, whereas larger farms were more profitable than small farms prior to the avian influenza period, larger farms suffered greater economic losses than small farms during avian influenza outbreak in the participating farms.