Yes, temperature effects airplane performance both the engine itself and the aerodynamics involved.
What Is Density Altitude?
Density altitude is pressure altitude corrected for nonstandard
temperature. As temperature and altitude increase, air density
decreases. In a sense, it's the altitude at which the airplane "feels"
How Will High Density Altitude Affect Flight?
On a hot and humid day, the aircraft will accelerate more slowly down
the runway, will need to move faster to attain the same lift, and will
climb more slowly. The less dense the air, the less lift, the more
lackluster the climb, and the longer the distance needed for takeoff
and landing. Fewer air molecules in a given volume of air also result
in reduced propeller efficiency and therefore reduced net thrust. All
of these factors can lead to an accident if the poor performance has
not been anticipated.
Tips for Flying in High Density Altitude Areas
One way of looking at it is that higher temperatures make the airplane fly the way it would at a higher altitude where the air is less dense. An airplane cannot climb to infinity, it has what is called a service ceiling [and an absolute ceiling] that the aircraft can no longer climb any higher. This also because of a decrease in air density, but for a different reason. Raising the temperature of the air also decreases this air density. You can use an Air Density Calculator or a Density Altitude Chart:
to determine how the aircraft will fly. It is especially important at airports with short runways or high actual altitudes [Denver, Colorado for example] where the aircraft already may need to be near maximum performance.
If the density altitude is 4,000ft than that means that airplane will fly like it was at 4,000ft at standard atmospheric temperature. Standard atmospheric temperature [at sea level] is 15 degrees Celsius or 59 degrees Fahrenheit. An airplane departing at a sea level airport, at 100F would feel like it is already flying at over 2600ft. An airplane departing at a 5,000ft airport would feel like it is already flying at over 8700ft. If clearing the trees at the end of the runway was already a concern at this particular airport it may not happen anymore.