Understanding the effect of powder feedstock alterations during multicycle additive manufacturing on the quality of built components is crucial to meet the requirements on critical parts for aerospace engine applications. In this study, powder recycling of Alloy 718 during electron beam melting was studied to understand its influence on fracture behavior of Charpy impact test bars. High resolution scanning electron microscopy was employed for fracture surface analysis on test bars produced from virgin and recycled powder. For all investigated samples, an intergranular type of fracture, initiated by non-metallic phases and bonding defects, was typically observed in the regions close to or within the contour zone. The fracture mode in the bulk of the samples was mainly moderately ductile dimple fracture. The results show a clear correlation between powder degradation during multi-cycle powder reuse and the amount of damage relevant defects observed on the fracture surfaces. In particular, samples produced from recycled powder show a significant amount of aluminum-rich oxide defects, originating from aluminum-rich oxide particulates on the surface of the recycled powder.