PEGASUS HAVA TAŞIMACILIĞI A.Ş.

Investor Presentation • Aug 12, 2024

2Q24 FINANCIAL RESULTS PRESENTATION August 2024

• HIGHLIGHTS

• SUMMARY FIGURES
• OUTLOOK
• ROUTE NETWORK & FLEET

2

3

EBITDA: Core EBIT+Depreciation exp.+55% of short term lease expenses

SUMMARY FIGURES – TRAFFIC & KPIs

ASK increased by 11% while revenues grew by 16% YoY in 2Q24.

	2023	2024	YoY	2023	2024	YoY
EURmn	Q2	Q2	% chg.	6M	6M	% chg.
Total Passengers (mn)	7.9	9.4	19%	14.1	17.4	23%
International (mn)	5.1	5.8	15%	8.8	10.7	22%
Total ASK (bn)	15.2	16.9	11%	26.2	31.1	19%
International (bn)	12.8	14.1	9%	21.5	25.6	19%
Load Factor	81.3%	87.5%		82.7%	87.3%
International	79.8%	85.3%		81.4%	85.3%
Revenues	657	763	16%	1,100	1,282	17%
Costs	510	615	20%	959	1,178	23%
Fuel costs	187	227	22%	350	427	22%
EBITDA	221	230	4%	290	268	-7%
EBITDA margin	33.6%	30.1%		26.3%	20.9%
Net Income/loss	91	112	23%	69	9	-87%
RASK	4.32	4.51	4%	4.20	4.12	-2%
CASK	3.36	3.64	8%	3.67	3.79	3%
CASK non-fuel	2.13	2.29	8%	2.33	2.41	4%

Traffic

4

• ➢ Total ASK grew 11% YoY in 2Q24 and 19% YoY in 6M24. International ASK grew 9% YoY in 2Q24 and 19% YoY in 6M24, standing 82% higher compared to 6M19.
• ➢ Our commercial strategy focuses on 'maximising revenue generation» through 'improving the load factor' and 'growing ancillary revenues'. In 2Q24, the blended LF increased by 6.2pp YoY to 87.5%. International LF increased by 5.5pp to 85.3% in 2Q24, and marked the highest Q2 realization ever.
• ➢ Total passenger volume increased by 19% YoY in 2Q24, 23% YoY in 6M24. International passenger volume grew 15% YoY in 2Q24 and 22% YoY in 6M24, standing 64% higher vs. 6M19.

➢ International pax per cycle reached 177 pax in 6M24, up from 164 pax in 6M23 and 151 pax in 6M19.

Financial Performance

• ➢ Revenues at EUR763mn in 2Q24 (+16% YoY) and EUR1,282mn in 6M24 (+17% YoY, +84% vs. 6M19). Ancillary revenue/pax is at EUR28.0 in 2Q24 (+7% YoY, +94% vs 2Q19).
• ➢ EBITDA reached EUR230mn in 2Q24 (+4% YoY) and EUR268mn in 6M24 (-7% YoY, +55% vs. 6M19), corresponding to an EBITDA margin of 30.1% in 2Q24 and 20.9% in 6M24.
• ➢ Bottomline result read EUR112mn profit for 2Q24 (+23% YoY) and EUR9mn profit for 6M24.

OUTLOOK

12%-14% growth planned in total ASK with RASK expected to be flat YoY in 2024.

2024 Outlook

• ➢ We are foreseeing 12%-14% growth in total ASK for 2024 (previously 10%-12% growth).
• ➢ We maintain our expectation for RASK to be flat YoY in 2024, driven by higher load factor and 'mid-to-high single digit growth' in ancillary revenue /passenger.
• ➢ We maintain our expectation for a 'mid-to-high single digit' increase in CASK non-fuel in 2024 over the 2023 level.
• ➢ We foresee an EBITDA margin within the 28%-30% range in 2024. We are confident that we will once again rank among the 'top EBITDA margin generators in the airline industry' for the year.

ROUTE NETWORK

International route network spans to 106 destinations currently. Announced additions to the int'l route network

6

in 2023 & 2024

Istanbul Sabiha Gokcen

→ Plovdiv → Kazan → Zagreb → Sofia * → Edinburgh * →	→ Amman → Dortmund → Kutaisi → Chisinau * Bratislava → Masshad * → Isfahan *	→ Birmingham → Alexandria → Cairo → Aktau → Tuzla → Shiraz *
Ankara
→ Moscow	→ Warsaw	→ Krakow
→ Podgorica	→ Lisbon *	→ Dublin *
Antalya
→ Symkent	→ Astana	→ St.Petersburg
→ Krakow	→ Warsaw
Izmir
→ Podgorica → Warsaw		→ Lisbon *
→ Krakow *
Dalaman	Gaziantep
→ Baku	→ Cologne *
Trabzon
→ Dammam	→ Erbil

* Announced in 2024

	Owned	Financial Lease	Operational Lease	Total
Boeing 737-800	6	3	1	10
Airbus A320ceo	-	-	6	6
Airbus A320neo	-	35	11	46
Airbus A321neo	-	45	1	46
Total	6	83	19	108

FLEET INFORMATION

• → Youngest fleet in Türkiye and one of the youngest among LCCs globally: 4.5 years.
• → 42 A320neo (all delivered) and 108 A321neo (45 delivered) on order.
• → Fleet size is planned to be 118 aircraft at the end of 2024.
• ✓ 11 A321neo delivery planned in the remainder of 2024, while 1 737-800 will exit.
• → Since 2021-end, all deliveries in the order book are of A321neo type.
• ✓ Average seat count of the fleet will reach 228 at the end of 2029, from 191 at the end of 2021

FLEET (as of June 30, 2024) A320NEO-A321NEO ORDER BOOK

FLEET & EFFICIENCY

Increasing share of Neo seats in total is making significant contribution to efficiency gains.

and • OPERATING ENVIRONMENT

FINANCIAL • P&L + BS DETAILS

OPERATING ENVIRONMENT

16.1

10.9

International passengers of Pegasus grew by 22% YoY in 6M24.

Domestic

+10%

12.0

International

Türkiye passenger data is taken from General Directorate of State Airports Authority, domestic passengers are divided by 2 in order to avoid double counting. Pegasus figures reflect booked passengers, int'l pax includes charter pax 11

5.4

6.7

+25%

REVENUES

6M24 international scheduled revenues stand 87% higher compared to 6M19.

	2023	2024
EURmn	Q2	Q2	chg YoY
TOTAL REVENUES	657	763	16%
scheduled Domestic	68	98	43%
International scheduled	372	387	4%
Ancillary	206	262	28%
Charter and Other	12	16	39%
(EURc) RASK	4 32	4 51	4%

EURmn	2023 6M	2024 6M	chg YoY
TOTAL REVENUES	1 100 ,	1 282 ,	17%
Domestic scheduled	125	166	33%
International scheduled	595	634	6%
Ancillary	362	460	27%
Charter and Other	18	23	28%
(EURc) RASK	4 20	4 12	-2%

International Scheduled KPIs 6M24 vs 6M19, % growth

SCHEDULED PASSENGER REVENUES

In 6M24 vs 6M19, while total capacity in ASK grew by 53%, the total scheduled unit revenue increased by 52%.

Passenger Yield - Sch. Domestic (TL)

Passenger Yield - Sch. Int'l (EUR)

ANCILLARY REVENUES

Ancillary revenue/pax amounted to EUR28.0 in 2Q24.

COSTS (EURmn)

Total costs increased by 20% YoY in 2Q24.

Costs (EURmn)	2023 Q2	2024 Q2	YoY % chg	2023 6M	2024 6M	YoY % chg
Jet fuel	187	227	22%	350	427	22%
Personnel	76	97	27%	142	194	37%
Maintenance	12	28	142%	31	53	72%
Depreciation	70	81	16%	143	164	15%
Handling	47	55	15%	82	99	20%
Navigation	41	45	7%	69	81	17%
Landing	24	25	8%	40	47	18%
Pax service & catering	5	7	38%	11	15	41%
ST leases	8	0.1	n.m.	6	1	n.m.
Other	41	49	22%	86	97	14%
TOTAL COSTS	510	615	20%	959	1,178	23%

COSTS (per ASK)

CASK non-fuel increased by 8% YoY in 2Q24.

Costs (per ASK, EURc)	2023 Q2	2024 Q2	YoY % chg	2023 6M	2024 6M	YoY % chg
Jet fuel	1.23	1.34	9%	1.34	1.37	3%
Personnel	0.50	0.57	14%	0.54	0.62	15%
Maintenance	0.08	0.17	117%	0.12	0.17	45%
Depreciation	0.46	0.48	5%	0.55	0.53	-3%
Handling	0.31	0.32	4%	0.31	0.32	1%
Navigation	0.27	0.26	-3%	0.27	0.26	-2%
Landing	0.15	0.15	-3%	0.15	0.15	-1%
Pax service & catering	0.03	0.04	24%	0.04	0.05	18%
ST lease	0.05	0.001	n.m.	0.02	0.00	n.m.
Other	0.27	0.29	10%	0.33	0.31	-5%
CASK (€ cent)	3.36	3.64	8%	3.67	3.79	3%
CASK non fuel (€ cent)	2.13	2.29	8%	2.33	2.42	4%

CURRENCY BREAKDOWN – OPERATIONAL PERSPECTIVE

Revenues and costs are mainly based on hard currencies.

* Costs excluding depreciation expenses

LIQUIDITY

Net debt stands at EUR2.48bn as of the end of June 2024.

EURmn	Dec 31, 2022	Dec 31, 2023	Jun 30, 2024
Cash & Equivalents	858	1,114	1,268
Other Assets	216	194	262
Pre-delivery payment	313	274	285
Fixed Assets	3,419	4,617	4,978
Total Assets	4,806	6,200	6,794
Liabilities	841	852	1,201
Bank Loans & Debt Instruments	485	602	689
Leasing Liabilities	2,575	3,067	3,204
Shareholders' Equity	905	1,678	1,699
Total Liab. & Sh. Equity	4,806	6,200	6,794
Net Debt, EURmn	2,046	2,418	2,483

Net Debt: Cash & equivalents + PDP/2 – Bank loans – Leasing liabilities Cash & equivalents include short and long-term financial assets

Breakdown of currencies and financial debt maturity

CASH RESERVES

Positive cash reserves are at EUR579mn as of the end of June 2024.

Cash reserves vs. Loans

• Cash reserves
• Positive cash after deducting bank loans

• Bank loans and debt instruments (total)

• Cash reserves include short and long term financial assets.

HEDGING & RISK MANAGEMENT

Fuel hedge ratio is at 50% for 2024 and 35% for 2025.

HEDGE VOLUME AND PRICE HEDGE STRATEGY

2024FY	2025FY
50%	35%
750-962	767-926
68-87	70-84

Price ranges are calculated by using market data of June 30, 2024 * Jet Fuel Price/11

• ➢ Non-discretionary portion is limited with 50% at any annual budgeting period, which is executed regardless of the price levels utilizing layered-hedging strategy.
• ➢ Discretionary portion is up to 20% of any annual budgeting period pursuant to the approval of Hedge Committee.
• ➢ Hedging tenor for non-discretionary portion is 24 months.
• ➢ Instruments: Vanilla Call Options, Zero Cost Collars and Swaps

RISK MANAGEMENT POLICY

• ➢ Currency Risk Hedge Program to weather exchange rate fluctuations.
• ➢ 100% international ticket revenues which are filed in US\$ but collected in TRY, EUR and GBP as well as up to 25% of domestic ticket revenues collected in TRY (if required) are converted to US\$ in daily spot market.

SUSTAINABILITY (ESG) UPDATE

PEGASUS
The Path To
Net Zero

Pegasus Airlines 2023 Sustainability Report is published on our Investor Relations Website.

• The report presents our work on sustainability, our relationships with our stakeholders, our impact on important environmental, social and governance issues, and the value we create.
• The content of the report is shaped in line with the core topics obtained from the materiality analysis we concluded with our stakeholders, the management of their impact and good practices.
• The report was prepared in accordance with the Global Reporting Initiative (GRI) Standards. In addition to our corporate goals, the report discusses our approach to the UN Global Compact (UNGC), IATA 2050 Net Zero Target and the IATA 25by25 targets. For the first time in our corporate history, the report, presents our business model, the capitals we use, the results we achieve, and our contribution to the United Nations Sustainable Development Goals, through the Integrated Reporting value model approach.
• Following the description of our sustainability strategy and governance structure, the report includes information about our safety and security-oriented business approach and our digitalization and innovationoriented work, each of which directly interact with our sustainability strategy. Later, our work reflecting our sustainability strategy is explained within the context of the three main pillars of sustainability statement: "Moving Towards a Sustainable Future". In this context, our work on "Moving Towards a Cleaner Future", "Moving Towards and Equal and Harmonious Future" and "Moving Towards a Better Future Together" are presented. Our report includes performance data from January 1, 2023 to December 31, 2023. In order to make the data comparable, performance for the last three years is included.
• We aim to publish our Sustainability Report, in a comparable manner as presented here for the first time, annually and to continuously improve its content.

SUMMARY DATA & FINANCIAL STATEMENTS

OPERATIONAL & FINANCIAL HIGHLIGHTS

	2019 Q1	2019 Q2	2019 Q3	2019 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	Q2 chg YoY	2019 6 M	2023 6 M	2024 6 M	6 M chg YoY
(€mn) TOTAL REVENUE	290	407	647	396	270	504	1 000 ,	675	442	657	962	609	519	763	16%	697	1 100 ,	1 282 ,	17%
(€mn) ANCILLARY REVENUE	9 3	107	143	116	9 3	127	214	192	156	206	251	198	198	262	28%	200	362	460	27%
(€mn) * EBITDA	4 2	131	314	9 3	3 3	104	469	230	6 9	221	418	131	3 9	230	4 %	173	290	268	-7%
EBITDA Margin	14 5%	32 1%	48 6%	23 5%	12 1%	20 6%	46 9%	34 1%	15 5%	33 6%	43 4%	21 5%	4% 7	30 1%	-3 5pp	24 8%	26 3%	20 9%	4pp -5
profit/loss (€mn) Net	-42	5 9	183	1 2	-60	-40	278	254	-22	9 1	253	-312	-103	112	23%	1 7	6 9	9	-87%
(mn) PAX	6 90	7 41	8 80	7 64	4 85	6 51	8 48	7 09	6 27	7 85	9 67	8 13	8 06	9 36	19%	14 3	14 1	17 4	23%
LOAD FACTOR	86 9%	87 3%	91 3%	88 4%	80 8%	78 7%	88 0%	85 5%	84 4%	81 3%	87 7%	85 2%	87 2%	87 5%	6 2pp	87 1%	82 7%	87 3%	4 7pp
(bn) ASK	9 5	10 8	12 7	10 9	8 4	11 9	14 8	12 5	11 0	15 2	17 5	14 6	14 2	16 9	11%	20 3	26 2	31 1	19%
(km) AVG STAGE LENGTH	192 1 ,	275 1 ,	320 1 ,	264 1 ,	399 1 ,	443 1 ,	540 1 ,	501 1 ,	473 1 ,	1 574 ,	583 1 ,	531 1 ,	533 1 ,	580 1 ,	0 %	235 1 ,	530 1 ,	558 1 ,	2 %
(€c) RASK ,	3 07	3 76	5 08	3 62	3 21	4 22	6 74	5 42	4 04	4 32	5 51	4 17	3 66	4 51	4 %	3 44	4 20	4 12	-2%
(€c) CASK ,	3 24	3 10	3 10	3 36	3 57	3 94	4 02	4 05	4 10	3 36	3 60	3 86	3 97	3 64	8 %	3 16	3 67	3 79	3 %
Non-fuel (€c) CASK ,	2 14	1 96	1 95	2 24	2 38	2 07	2 06	2 29	2 61	2 13	2 13	2 30	2 56	2 29	% 8	2 04	2 33	2 41	% 4
(€) ANCILLARY PER PAX	13 4	14 4	16 3	15 2	19 2	19 5	25 2	27 1	24 9	26 2	25 9	24 3	24 5	28 0	7 %	14 0	25 6	26 4	3 %
EUR/US\$ (avg ) rate	1 14	1 12	1 11	1 11	1 12	1 07	1 01	1 02	1 07	1 09	1 09	1 08	1 09	1 08	-1%	1 13	1 08	1 08	% 0
EUR/TRY (avg ) rate	6 09	6 59	6 30	6 40	15 60	16 77	18 04	18 97	20 21	22 64	29 12	30 63	33 52	34 79	54%	6 34	21 43	34 16	59%

* EBITDA: Core EBIT+Depreciation expenses+55% of wet lease expenses 23

P&L STATEMENT

P&L STATEMENT EURmn ,	2023 Q2	2024 Q2	2023 6M	2024 6M
Sales	657	763	1 100 ,	1 282 ,
of sales Cost	-483	-576	-906	-1 108 ,
profit Gross	174	187	193	174
General administrative ( ) expenses -	-14	-22	-28	-40
Marketing ( ) expenses -	-14	-17	-24	-30
Other operating income	4	0	0	1 0
( ) Other operating expenses -	-29	0	-26	-2
profit Operating	121	148	115	112
Income/expense from investing activities	6 1	7	2 3	2 3
Share of (equity method) investments income	0	0 8	0	1
Operating profit before financial expense	137	156	138	136
Financial income	1 2	1 3	3 7	2 3
Financial ( ) expense -	-55	-75	-104	-172
/ Profit (loss) before tax	9 4	9 3	7 1	-13
Current tax expense	0	0	0	0
/ (expense) Deferred income tax	-3	1 9	-2	2 3
/ (loss) Profit for the period	9 1	112	6 9	9

BALANCE SHEET

ASSETS EURmn ,	2023 12M	2024 6M	LIABILITIES EURmn ,	2023 12M	2024 6M
Current assets	1 474 ,	1 663 ,	liabilities Current	1 142 ,	1 505 ,
Cash and cash equivalents	494	878	financial Short liabilities term	572	683
Financial assets	569	265	Trade payables	200	280
Trade receivables	5 1	8 4	flight liabilities Passenger	258	419
Other receivables	6	5	financial Derivative instruments	3	0
financial Derivative instruments	0	9	Short provisions term	6 3	5 2
Inventories	3 3	3 2	Other liabilities current	4 4	7 1
Prepaid expenses	313	384	liabilities Non-Current	3 380 ,	3 590 ,
Other current assets	8	6	financial liabilities Long term	3 097 ,	3 211 ,
Non-Current assets	4 726 ,	131 5 ,	financial Derivative instruments	2	0
Financial assets	5 1	125	Deferred income	108	181
Other receivables	5 5	5 8	provisions Long term	173	198
financial Derivative instruments	0	3	Deferred liabilities tax	0	0
(equity method) Investments	8 1	2 0	SHAREHOLDERS' EQUITY	678 1 ,	699 1 ,
and Property equipment	319	393	Paid share capital -in	6 1	230
Intangible assets	2 0	2 2	Share capital stock premiums on	194	2 5
of Right assets use	3 485 ,	3 688 ,	Other	797	2 8
Prepaid expenses	390	415	Retained earnings	627	1 417 ,
Deferred tax assets	388	407	profit/loss Net	790	9
TOTAL ASSETS	6 200 ,	6 794 ,	TOTAL LIABILITIES AND EQUITY	6 200 ,	6 794 ,

25

CASH FLOW STATEMENT

CASH FLOW STATEMENT
CASH FLOW STATEMENT, EURmn	2023 6M	2024 6M
A. CASH FLOWS FROM OPERATING ACTIVITIES	338	403
Net cash generated from operating activities	258	280
Changes in working capital	8 1	123
B. CASH FLOWS FROM INVESTING ACTIVITIES	-85	169
Cash payments to acquire debt instruments of other entities	-34	1 2
Proceeds from sale of property, equipment and intangible assets	-11	3 5
Interest received from financial investment	1 1	2 1
Changes in cash advances and payables	-18	-121
Other cash changes	-32	222
C. CASH FLOWS FROM FINANCING ACTIVITIES	-217	-194
Increase in borrowings	160	103
Repayment of borrowings	-125	-25
Repayment of principal in lease liabilities	-167	-172
Interest and commission paid	-88	-123
Interest received	4	2 2
D. TRANSLATION DIFFERENCES EFFECT ON CASH AND CASH EQUIVALENTS	-1	6
NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D)	3 6	384
E. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	530	494
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (A+B+C+D+E)	565	878

DISCLAIMER

This document is prepared by Pegasus Hava Taşımacılığı Anonim Şirketi ("Pegasus") in accordance with the Pegasus Information Policy. The information covered in this document may be based on Pegasus corporate records, its own internal research and estimates based on the knowledge and experience of the markets in which it operates, or industry, market and similar data procured from third parties as indicated in the document. While Pegasus believes that third party data has been obtained from reputable sources it does not independently verify such data or commit to any undertakings regarding the completeness or accurateness of such data or such data not being misleading.

The data contained in this document aims to inform intended recipients of the operational results, targets and expectations of Pegasus in a correct and transparent manner and on equal terms and does not intend any investment advice or any offer or solicitation in connection with securities issued by Pegasus. Investors must make their investment decisions based on all other information, events and circumstances available through different channels and that may affect their investment decisions.

Investor communication prepared by Pegasus may contain forward-looking statements, including targets or expectations. These forward-looking statements may be disclosed as targets or expectations or through expressions such as "anticipate", "believe", "estimate" or "expect" or using the future tense. Forward-looking statements may relate to the operational and financial performance of Pegasus, its growth and strategies or future plans and targets of Pegasus Management. Forward-looking statements relate to matters that have not yet realized. While forward-looking statements are based on reasonable assumptions and estimates, such statements are prone to uncertainty and risks and such statements reflect the targets and expectations valid as of the date of announcement. Many factors could cause the actual results to be materially different from targets and expectations expressed by such forward-looking statements.

In the absence of any legal obligations arising from the applicable capital markets law, Pegasus does not undertake to update, keep up-to-date or to periodically review the information contained herein, including any forward-looking statements. By using this document for any purpose, you are deemed to have read, understood and accepted the warnings stated in this disclaimer.

We didn't start aviation in Türkiye, but we transformed it!