Quarterly Report • Nov 11, 2024
Quarterly Report
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED 30 SEPTEMBER 2024
| INDEX | PAGE | |
|---|---|---|
| INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 1-2 | |
| INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
3-4 | |
| INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 5-6 | |
| INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | 7 | |
| NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 8-49 | |
| NOTE 1 | ORGANIZATION AND OPERATIONS OF THE GROUP | 8 |
| NOTE 2 | BASIS OF PRESENTATION OF FINANCIAL STATEMENTS | 8-16 |
| NOTE 3 | INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | 17-18 |
| NOTE 4 | SEGMENT REPORTING | 18 |
| NOTE 5 | RELATED PARTY TRANSACTIONS | 18-20 |
| NOTE 6 | TRADE RECEIVABLES AND PAYABLES OTHER RECEIVABLES | 21-22 |
| NOTE 7 | PREPAYMENTS, DEFERRED INCOME AND PASSENGER FLIGHT LIABILITIES | 22-23 |
| NOTE 8 | PROPERTY AND EQUIPMENT | 24-25 |
| NOTE 9 | INTANGIBLE ASSETS | 26 |
| NOTE 10 | RIGHT OF USE ASSETS | 26-27 |
| NOTE 11 | PROVISIONS, CONTINGENT ASSETS AND LIABILITIES | 27-28 |
| NOTE 12 | COMMITMENTS | 28-30 |
| NOTE 13 | EXPENSES BY NATURE | 31 |
| NOTE 14 | SHAREHOLDERS' EQUITY | 31 |
| NOTE 15 | REVENUE AND COST OF SALES | 32 |
| NOTE 16 | GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES | 33 |
| NOTE 17 | OTHER OPERATING INCOME AND EXPENSES | 34 |
| NOTE 18 | INCOME AND EXPENSES FROM INVESTING ACTIVITIES | 34 |
| NOTE 19 | FINANCIAL INCOME AND EXPENSES | 35 |
| NOTE 20 | EARNINGS PER SHARE | 35 |
| NOTE 21 | DERIVATIVE FINANCIAL INSTRUMENTS | 35 |
| NOTE 22 | FINANCIAL INSTRUMENTS | 36-40 |
| NOTE 23 | NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS | 40-43 |
| NOTE 24 | FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES) | 44-47 |
| NOTE 25 | EVENTS AFTER REPORTING PERIOD | 47 |
| NOTE 26 | INCOME TAX EXPENSE | 48 |
| NOTE 27 | EXPLANATIONS RELATED TO STATEMENT OF CASH FLOW | 49 |
| APPENDIX – EURO SELECTED NOTES | 50 |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Current period (Not reviewed) TL 30 September |
Prior period (Audited) TL 31 December |
(*) EUR 30 September |
(*) EUR 31 December |
||
|---|---|---|---|---|---|
| Notes | 2024 | 2023 | 2024 | 2023 | |
| ASSETS | |||||
| Current assets | 71.370.436.970 | 48.001.577.327 | 1.877.280.156 1.473.620.823 | ||
| Cash and cash equivalents | 27 | 47.040.611.014 | 16.078.358.927 | 1.237.324.715 | 493.596.374 |
| Financial assets | 22 | 8.436.160.478 | 18.534.625.942 | 221.899.113 | 569.002.359 |
| Trade receivables | 6 | 3.073.029.118 | 1.668.899.597 | 80.830.899 | 51.234.258 |
| Trade receivables from third parties | 3.073.029.118 | 1.668.899.597 | 80.830.899 | 51.234.258 | |
| Other receivables | 6 | 76.647.862 | 184.612.285 | 2.016.094 | 5.667.491 |
| Other receivables from related parties | 5 | - | 44.138 | - | 1.355 |
| Other receivables from third parties | 76.647.862 | 184.568.147 | 2.016.094 | 5.666.136 | |
| Derivative financial instruments | 21 | - | 12.607.533 | - | 387.044 |
| Inventories | 1.409.555.102 | 1.075.273.755 | 37.075.993 | 33.010.286 | |
| Prepaid expenses | 7 | 11.267.085.726 | 10.201.603.776 | 296.361.874 | 313.183.370 |
| Current income tax assets | 60.505.647 | 19.552.842 | 1.591.500 | 600.261 | |
| Other current assets | 6.842.023 | 226.042.670 | 179.968 | 6.939.380 | |
| Non-Current assets | 204.865.686.544 | 153.953.502.230 | 5.388.646.719 4.726.283.979 | ||
| Financial assets | 22 | 4.578.886.475 | 1.674.235.495 | 120.439.962 | 51.398.067 |
| Other receivables | 6 | 2.834.155.447 | 1.778.877.878 | 74.547.726 | 54.610.528 |
| Other receivables from third parties | 2.834.155.447 | 1.778.877.878 | 74.547.726 | 54.610.528 | |
| Investments accounted by using the equity method | 3 | 765.194.831 | 602.491.387 | 20.127.172 | 18.496.139 |
| Property and equipment | 8 | 16.445.880.312 | 10.377.700.527 | 432.578.378 | 318.589.424 |
| Intangible assets | 9 | 825.795.821 | 643.504.105 | 21.721.180 | 19.755.206 |
| Right of use assets | 10 | 147.535.015.976 | 113.509.023.248 | 3.880.662.212 3.484.661.746 | |
| Prepaid expenses | 7 | 17.508.712.698 | 12.718.004.262 | 460.537.448 | 390.435.418 |
| Deferred tax assets | 26 | 14.372.044.984 | 12.649.665.328 | 378.032.641 | 388.337.451 |
| TOTAL ASSETS | 276.236.123.514 | 201.955.079.557 | 7.265.926.875 6.199.904.802 |
(*)The functional currency of the Company is Euro. However, the presentation currency is determined as Turkish Lira. See Note 2.1 for the conversion of Euro and Turkish Lira amounts.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Notes | Current period (Not reviewed) TL 30 September 2024 |
Prior period (Audited) TL 31 December 2023 |
(*) EUR 30 September 2024 |
(*) EUR 31 December 2023 |
|
|---|---|---|---|---|---|
| LIABILITIES | |||||
| Current liabilities | 55.847.936.588 | 37.183.794.680 | 1.468.986.706 | 1.141.521.116 | |
| Short term borrowings | 22 | 5.084.515.230 | 5.353.784.770 | 133.739.682 | 164.358.114 |
| Short term portion of long term borrowings | 22 | 7.727.059.919 | 1.944.707.759 | 203.247.407 | 59.701.410 |
| Short term portion of long term lease liabilities | 22 | 14.177.801.745 | 11.326.083.111 | 372.923.398 | 347.704.239 |
| Trade payables | 6 | 9.765.646.973 | 6.526.115.717 | 256.869.035 | 200.348.000 |
| Trade payables to related parties | 5 | 32.340.620 | 17.811.962 | 850.666 | 546.817 |
| Trade payables to third parties | 9.733.306.353 | 6.508.303.755 | 256.018.369 | 199.801.183 | |
| Employee benefit obligations | 1.061.869.467 | 398.269.511 | 27.930.703 | 12.226.645 | |
| Other payables | 6 | 480.931.235 | 260.455.138 | 12.650.093 | 7.995.823 |
| Other payables to third parties | 480.931.235 | 260.455.138 | 12.650.093 | 7.995.823 | |
| Passenger flight liabilities | 7 | 12.511.143.399 | 8.418.318.534 | 329.084.734 | 258.437.538 |
| Derivative financial instruments | 21 | 297.090.558 | 109.079.828 | 7.814.471 | 3.348.688 |
| Deferred income | 7 | 1.653.286.807 | 782.027.857 | 43.486.948 | 24.007.806 |
| Short term provisions | 3.088.591.255 | 2.064.952.455 | 81.240.235 | 63.392.853 | |
| Short term provisions for employee benefits | 1.984.809.262 | 1.587.893.487 | 52.207.093 | 48.747.417 | |
| Other short term provisions | 1.103.781.993 | 477.058.968 | 29.033.142 | 14.645.436 | |
| Non-Current liabilities | 145.001.065.825 | 110.102.098.656 | 3.814.010.885 | 3.380.071.120 | |
| Long term borrowings | 22 | 17.345.179.066 | 12.312.016.907 | 456.235.969 | 377.971.840 |
| Long term lease liabilities | 22 | 113.094.737.887 | 88.581.646.542 | 2.974.768.212 | 2.719.405.614 |
| Derivative financial instruments | 7 | 271.863.753 | 64.250.780 | 7.150.922 | 1.972.462 |
| Deferred income | 7.832.351.036 | 3.506.810.209 | 206.016.914 | 107.657.057 | |
| Long term provisions | 6.456.934.083 | 5.637.374.218 | 169.838.868 | 173.064.147 | |
| Long term provisions for employee benefits | 1.868.709.893 | 1.201.242.173 | 49.153.293 | 36.877.444 | |
| Other long term provisions | 4.588.224.190 | 4.436.132.045 | 120.685.575 | 136.186.703 | |
| SHAREHOLDERS' EQUITY | 75.387.121.101 | 54.669.186.221 | 1.982.929.284 | 1.678.312.566 | |
| Paid-in share capital | 14 | 500.000.000 | 102.299.707 | 230.037.951 | 60.544.134 |
| Share premiums on capital stock | 57.986.732 | 455.687.025 | 24.595.488 | 194.089.305 | |
| Other comprehensive income/expense | |||||
| not to be reclassified to profit or loss | |||||
| Actuarial losses on defined benefit plans | (153.339.786) | (105.998.793) | (4.033.347) | (3.254.102) | |
| Currency translation differences | 37.166.408.156 | 27.604.819.459 | - | - | |
| Other comprehensive income/expense | |||||
| to be reclassified to profit or loss | |||||
| Currency translation differences | 453.500.138 | 368.154.236 | 8.936.283 | 8.808.787 | |
| Hedge fund | (378.863.247) | (129.997.940) | (9.965.365) | (3.990.862) | |
| Gain on financial assets measured at fair value | 95.253.909 | 48.328.332 | 2.505.495 | 1.483.652 | |
| Restricted profit reserves | 20.459.941 | 20.459.941 | 4.047.406 | 4.047.406 | |
| Retained earnings | 26.305.434.254 | 5.397.932.457 | 1.416.584.246 | 626.643.772 | |
| Net income for the period | 11.320.281.004 | 20.907.501.797 | 310.221.127 | 789.940.474 | |
| TOTAL LIABILITIES AND EQUITY | 276.236.123.514 | 201.955.079.557 | 7.265.926.875 | 6.199.904.802 |
(*)The functional currency of the Company is Euro. However, the presentation currency is determined as Turkish Lira. See Note 2.1 for the conversion of Euro and Turkish Lira amounts.
| Current period (Not reviewed) TL |
Prior period (Not reviewed) TL |
Current period (Not reviewed) TL |
Prior period (Not reviewed) TL |
(*) EUR |
(*) EUR |
(*) EUR |
(*) EUR |
||
|---|---|---|---|---|---|---|---|---|---|
| Profit or loss | Notes | 1 January- 30 September 2024 |
1 January- 30 September 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
1 January- 30 September 2024 |
1 January- 30 September 2023 |
1 July - 30 September 2024 |
1 July - 30 September 2023 |
| Sales Cost of sales (-) |
15 15 |
84.046.387.728 (63.576.264.045) |
51.974.988.971 (37.062.135.745) |
40.082.452.433 (25.567.108.341) |
28.072.539.861 (17.308.764.038) |
2.373.341.712 (1.789.909.299) |
2.061.478.639 (1.497.926.741) |
1.091.401.249 (681.890.071) |
961.789.802 (592.068.184) |
| Gross profit | 20.470.123.683 | 14.912.853.226 | 14.515.344.092 | 10.763.775.823 | 583.432.413 | 563.551.898 | 409.511.178 | 369.721.618 | |
| General administrative expenses (-) Marketing expenses (-) Other operating income Other operating expenses (-) |
16 16 17 17 |
(2.213.830.413) (1.697.711.880) 14.131.779 (667.061.368) |
(1.224.782.495) (975.604.221) 15.967.399 (477.689.542) |
(941.572.915) (689.407.795) 4.789.421 (922.157.432) |
(558.446.256) (397.108.313) 20.110.065 68.122.267 |
(71.984.146) (50.220.872) 422.705 (19.136.331) |
(50.291.990) (38.325.197) 667.888 (19.578.384) |
(32.078.774) (20.135.829) 136.209 (26.543.964) |
(21.664.399) (13.870.560) 861.439 5.919.368 |
| Operating profit | 15.905.651.801 | 12.250.744.367 | 11.966.995.371 | 9.896.453.586 | 442.513.769 | 456.024.215 | 330.888.820 | 340.967.466 | |
| Income from investing activities Expenses from investing activities (-) Share of investments income accounted for using the equity method |
18 18 3 |
1.440.867.750 (238.182.318) 63.505.152 |
945.019.765 (76.782.534) 6.485.049 |
411.183.497 (24.644.845) 21.295.636 |
253.038.699 15.371.837 (1.120.411) |
39.109.669 (6.227.904) 1.812.701 |
34.286.538 (2.702.732) 270.150 |
10.030.871 (163.679) 575.724 |
8.233.453 657.121 (86.084) |
| Operating profit before financial expense | 17.171.842.385 | 13.125.466.647 | 12.374.829.659 | 10.163.743.711 | 477.208.235 | 487.878.171 | 341.331.736 | 349.771.956 | |
| Financial income Financial expense (-) |
19 19 |
1.626.368.421 (7.050.049.420) |
392.717.759 (4.173.885.236) |
2.288.516.613 (2.644.844.210) |
276.492.254 (2.472.833.306) |
46.775.852 (201.549.475) |
17.079.252 (171.396.815) |
66.231.680 (71.702.094) |
7.596.604 (94.687.623) |
| Profit/(loss) before tax | 11.748.161.386 | 9.344.299.170 | 12.018.502.062 | 7.967.402.659 | 322.434.612 | 333.560.608 | 335.861.322 | 262.680.937 | |
| Tax income/(expense) Deferred tax income/(expense) |
26 | (427.880.382) (427.880.382) |
(298.159.404) (298.159.404) |
(1.194.408.715) (1.194.408.715) |
(248.163.203) (248.163.203) |
(12.213.485) (12.213.485) |
(12.420.529) (12.420.529) |
(34.677.098) (34.677.098) |
(10.078.743) (10.078.743) |
| Profit for the period | 11.320.281.004 | 9.046.139.766 | 10.824.093.347 | 7.719.239.456 | 310.221.127 | 321.140.079 | 301.184.224 | 252.602.194 | |
| Income/(loss) per share (TL) / (EUR) | 20 | 40,31 | 88,43 | 21,65 | 75,46 | 1,10 | 3,14 | 0,60 | 2,47 |
(*)The functional currency of the Company is Euro. However, the presentation currency is determined as Turkish Lira. See Note 2.1 for the conversion of Euro and Turkish Lira amounts.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Current period (Not reviewed) TL |
Prior period | Current period (Not reviewed) TL (Not reviewed) TL (Not reviewed) TL |
Prior period | (*) EUR |
(*) EUR |
(*) EUR |
(*) EUR |
|
|---|---|---|---|---|---|---|---|---|
| 1 January- | 1 January- | 1 July - | 1 July - | 1 January- | 1 January- | 1 July - | 1 July - | |
| Other comprehensive income | 30 September 2024 30 September 2023 30 September 2024 30 September 2023 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | |||||||
| Items not to be reclassified to profit or loss | ||||||||
| Actuarial (losses) / gains on defined benefit plans | (63.121.323) | (42.409.628) | (18.465.975) | (8.294.577) | (1.038.993) | 4.418 | (83.302) | (149.153) |
| Deferred tax effect | 15.780.331 | 8.481.926 | 4.616.494 | 1.658.915 | 259.748 | (884) | 20.826 | 29.831 |
| Currency translation differences | 9.561.588.697 | 8.276.768.672 | 5.471.373.177 | 447.030.881 | - | - | - | - |
| Items to be reclassified to profit or loss | ||||||||
| Currency translation differences | 85.345.902 | 161.115.883 | 25.671.221 | 41.054.145 | 127.496 | 1.212.611 | (628.090) | 1.064.123 |
| Gain on financial assets measured at fair value | 62.567.471 | (4.000.595) | 73.681.673 | 11.648.904 | 1.362.458 | (665.255) | 1.822.699 | 382.058 |
| Cash flow hedge | (331.820.400) | (14.383.088) | (866.861.028) | 558.549.332 | (7.966.004) | (6.049.738) | (23.583.951) | 19.475.514 |
| Deferred tax effect | 67.313.198 | 3.676.747 | 198.294.845 | (114.039.652) | 1.650.886 | 1.342.999 | 5.440.313 | (3.971.515) |
| Other comprehensive income | 9.397.653.876 | 8.389.249.917 | 4.888.310.407 | 937.607.948 | (5.604.409) | (4.155.849) | (17.011.505) | 16.830.858 |
| Total comprehensive income | 20.717.934.880 | 17.435.389.683 | 15.712.403.754 | 8.656.847.404 | 304.616.718 | 316.984.230 | 284.172.719 | 269.433.052 |
(*)The functional currency of the Company is Euro. However, the presentation currency is determined as Turkish Lira. See Note 2.1 for the conversion of Euro and Turkish Lira amounts.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Other comprehensive | Other comprehensive | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| income items | income items | |||||||||||
| not to be reclassified | to be reclassified to | |||||||||||
| to profit or loss | profit or loss | Retained earnings | ||||||||||
| Actuarial | Gain on | |||||||||||
| Share | gains/(losses) | Currency | Currency | financial assets | ||||||||
| Paid in | premiums on | on defined | translation | translation | Hedge | measured at fair | Restricted | Retained | Net profit/(loss) | Shareholders' | ||
| share capital | capital stock | benefit plans | differences | differences | reserve | value | profit reserves | earnings | for the year | equity | ||
| As at 1 January 2023 | TL 102.299.707 455.687.025 | (74.584.475) 11.667.935.448 165.445.988 | 282.719.523 | 26.847.705 | 20.459.941 (1.702.212.691) | 7.100.145.148 18.044.743.319 | ||||||
| Transfers | TL | - | - | - | - | - | - | - | - | 7.100.145.148 (7.100.145.148) | - | |
| Net profit/(loss) for the period | TL | - | - | - | - | - | - | - | - | - | 9.046.139.766 9.046.139.766 | |
| Other comprehensive income / (expense) | TL | - | - | (33.927.702) 8.276.768.672 161.115.883 | (11.506.460) | (3.200.476) | - | - | - 8.389.249.917 | |||
| As at 30 September 2023 | TL 102.299.707 455.687.025 (108.512.177) 19.944.704.120 326.561.871 | 271.213.063 | 23.647.229 | 20.459.941 | 5.397.932.457 | 9.046.139.766 35.480.133.002 | ||||||
| As at 1 January 2024 | TL 102.299.707 455.687.025 (105.998.793) 27.604.819.459 368.154.236 (129.997.940) | 48.328.332 | 20.459.941 | 5.397.932.457 | 20.907.501.797 54.669.186.221 | |||||||
| Transfers | TL 397.700.293 (397.700.293) | - | - | - | - | - | - 20.907.501.797 (20.907.501.797) | - | ||||
| Net profit/(loss) for the period | TL | - | - | - | - | - | - | - | - | - | 11.320.281.004 11.320.281.004 | |
| Other comprehensive income / (expense) | TL | - | - | (47.340.993) 9.561.588.697 85.345.902 (248.865.307) | 46.925.577 | - | - | - 9.397.653.876 | ||||
| As at 30 September 2024 | TL 500.000.000 | 57.986.732 (153.339.786) 37.166.408.156 453.500.138 (378.863.247) | 95.253.909 | 20.459.941 26.305.434.254 | 11.320.281.004 75.387.121.101 | |||||||
Within the registered capital ceiling of TL 500.000.000, the Company's issued capital amounting to TL 102.299.707 was increased by TL 397.700.293 to TL 500.000.000, all of which was covered from the amounts in the " Share Premiums on Capital Stock" account, and capital increase was registered with the Trade Registry on May 30, 2024.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Other comprehensive Other comprehensive income items income items not to be reclassified to be reclassified to to profit or loss profit or loss Retained earnings Share Gain on financial Restricted Net Paid in premiums on Actuarial gains/(losses) Currency translation Hedge assets measured at profit Retained profit/(loss) for Shareholders' share capital capital stock on defined benefit plans differences fair value earnings the year equity reserve reserves As at 1 January 2023 EUR 60.544.134 194.089.305 (3.741.402) 8.071.040 14.182.139 1.346.769 4.047.406 195.884.759 430.759.013 905.183.163 Transfers 430.759.013 (430.759.013) EUR - - - - - - - 321.140.079 Net profit/(loss) for the period EUR 321.140.079 - - - - - - - - 3.534 Other comprehensive income / (expense) EUR 1.212.611 (4.839.790) (532.204) (4.155.849) - - - - - As at 30 September 2023 EUR 60.544.134 194.089.305 (3.737.868) 9.283.651 9.342.349 814.565 4.047.406 626.643.772 321.140.079 1.222.167.393 |
|---|
| (3.254.102) 8.808.787 (3.990.862) As at 1 January 2024 EUR 60.544.134 194.089.305 1.483.652 4.047.406 626.643.772 789.940.474 1.678.312.566 |
| EUR 169.493.817 (169.493.817) Transfers 789.940.474 (789.940.474) - - - - - |
| 310.221.127 Net profit/(loss) for the period EUR 310.221.127 - - - - - - - - |
| Other comprehensive income / (expense) EUR (779.245) 127.496 (5.974.503) 1.021.843 (5.604.409) - - - - - |
| As at 30 September 2024 EUR 230.037.951 24.595.488 (4.033.347) 8.936.283 (9.965.365) 2.505.495 4.047.406 1.416.584.246 310.221.127 1.982.929.284 |
(*)The functional currency of the Company is Euro. However, the presentation currency is determined as Turkish Lira. See Note 2.1 for the conversion of Euro and Turkish Lira amounts.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Current period | Prior period (Not reviewed) TL (Not reviewed) TL |
(*) EUR |
(*) EUR |
||
|---|---|---|---|---|---|
| 1 January- | 1 January- | 1 January- | 1 January | ||
| Notes 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | |||||
| A. CASH FLOWS FROM OPERATING ACTIVITIES | |||||
| Income/(loss) for the period | 11.320.281.004 | 9.046.139.766 | 310.221.127 | 321.140.079 | |
| Adjustments to reconcile the income/(loss) | 8-9-10 | 8.736.670.720 | 5.295.507.769 | 249.382.550 | 220.596.763 |
| Depreciation and amortization Adjustments related with impairments |
235.554.054 | 80.707.058 | 6.152.882 | 2.866.217 | |
| Provision for doubtful receivable | (2.628.265) | 3.924.524 | (75.022) | 163.485 | |
| Adjustments related with financial investment impairments | 238.182.319 | 76.782.534 | 6.227.904 | 2.702.732 | |
| Adjustments related with provisions | 2.828.465.486 | 573.923.458 | 76.976.144 | 19.078.875 | |
| Provision for employee benefits | 1.677.961.011 | 669.723.682 | 44.135.962 | 23.069.657 | |
| Legal provison | 17.955.399 | 10.088.875 | 512.522 | 420.276 | |
| Change in redelivery provision | 1.132.549.076 | (105.889.099) | 32.327.660 | (4.411.058) | |
| Interest and commission income | 4.554.431.360 | 2.715.802.590 | 131.759.953 | 115.066.333 | |
| Adjustments related with fair value expense (income) | (62.567.470) | 4.000.587 | (1.645.733) | 137.806 | |
| Adjustments related with fair value expense (income) of financial assets Gain on equity investments accounted for |
(62.567.470) | 4.000.587 | (1.645.733) | 137.806 | |
| using the equity method | 3 | (63.505.152) | (6.485.049) | (1.812.701) | (270.150) |
| Current tax expense | 427.880.382 | 298.159.404 | 12.213.485 | 12.420.529 | |
| Other provisions related with investing or financing activities |
(553.301.076) | 125.439.820 | (15.525.840) | 5.242.489 | |
| Changes in working capital | |||||
| Increase in trade receivables Increase in other receivables, prepayments |
(1.034.243.835) | (460.824.877) | (29.521.619) | (19.196.738) | |
| and other assets | (2.782.856.518) | (1.710.302.143) | (108.382.776) | (71.554.803) | |
| Increase in inventories | (142.435.696) | (155.939.388) | (4.065.707) | (6.496.020) | |
| Increase in trade payables | 1.980.126.199 | 1.224.682.732 | 56.521.035 | 51.017.024 | |
| Increase in deferred income, other payables and other current liabilities | 2.300.771.033 | 2.185.394.728 | 85.943.730 | 104.959.389 | |
| Net cash generated from operating activities | 27.745.270.491 | 19.216.206.455 | 768.216.530 | 755.007.793 | |
| Payment for the employee benefits provisions | (965.038.610) | (381.084.313) | (27.642.310) | (16.087.136) | |
| Payment for other provisions | (972.063) | (424.563) | (27.747) | (17.686) | |
| 26.779.259.818 | 18.834.697.579 | 740.546.473 | 738.902.971 | ||
| B. CASH FLOWS FROM INVESTING ACTIVITIES | |||||
| Net cash changes from acquisition and sale of debt instruments | |||||
| of other entities | 29.156.667 | (805.950.206) | (2.624.554) | (36.316.812) | |
| Net cash changes from purchase and sale of property, equipment and intangible assets | 2.395.415.979 | (313.568.002) | 63.582.380 | (13.062.409) | |
| Interest received from financial investment | 1.130.504.263 | 603.195.603 | 33.062.751 | 25.183.648 | |
| Changes in cash advances and payables | (4.960.155.514) | (1.478.974.790) | (141.583.462) | (61.610.155) | |
| Other cash changes | 8.816.135.307 | (1.421.955.000) | 273.013.992 | (46.000.000) | |
| 7.411.056.702 | (3.417.252.395) | 225.451.107 | (131.805.728) | ||
| C. CASH FLOWS FROM FINANCING ACTIVITIES | |||||
| Increase in borrowings | 20.693.628.024 | 4.736.735.930 | 556.110.541 | 209.150.000 | |
| Repayment of borrowings | (12.903.714.346) | (3.737.697.215) | (346.613.064) | (165.500.000) | |
| Repayment of principal in lease liabilities | (8.997.070.693) | (6.415.927.657) | (256.813.807) | (267.270.475) | |
| Interest and commission paid | (6.696.404.551) | (3.079.916.048) | (196.293.675) | (139.932.150) | |
| Interest received | 1.252.455.957 | 309.633.201 | 36.443.069 | 14.339.401 | |
| (6.651.105.609) | (8.187.171.789) | (207.166.936) | (349.213.224) | ||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | |||||
| BEFORE TRANSLATION EFFECT (A+B+C) | 27.539.210.911 | 7.230.273.395 | 758.830.644 | 257.884.019 | |
| 3.423.041.176 | 4.584.111.279 | ||||
| D. TRANSLATION DIFFERENCES EFFECT ON CASH AND CASH EQUIVALENTS | (15.102.303) | (16.861.111) | |||
| NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D) | 30.962.252.087 | 11.814.384.674 | 743.728.341 | 241.022.908 | |
| E. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | |||||
| AT THE BEGINNING OF THE PERIOD | 27 | 16.078.358.927 | 10.558.266.871 | 493.596.374 | 529.637.313 |
(*)The functional currency of the Company is Euro. However, the presentation currency is determined as Turkish Lira. See Note 2.1 for the conversion of Euro and Turkish Lira amounts.
AT THE END OF THE PERIOD (A+B+C+D+E) 27 47.040.611.014 22.372.651.545 1.237.324.715 770.660.221
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
Pegasus Hava Taşımacılığı A.Ş. (the "Company" or "Pegasus") and its subsidiaries (together "the Group") is a low cost airline company. The Group operates under a low cost business model and employs low cost airline business practices which focus on providing affordable, reliable and simple service.
The shareholders and ownership of the Company as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Esas Holding A.Ş. ("Esas Holding") | 56,65% | 56,65% |
| Publicly held | 41,53% | 41,53% |
| Sabancı Family Members | 1,82% | 1,82% |
| Total | 100,00% | 100,00% |
Shares of the Company have been started to be traded in İstanbul Stock Exchange since 26 April 2013, after the book building between the dates of 18-19 April 2013.
The Group's total number of full time employees as of 30 September 2024 is 8.553 (31 December 2023: 7.670). The address of its principal office is Aeropark Yenişehir Mah. Osmanlı Bulvarı No: 11/A Kurtkoy-Pendik İstanbul.
The interim condensed consolidated financial statements of the Company and its subsidiaries for the nine month ended 30 September 2024 were authorised for issue in accordance with a resolution of the Board of Directors on 11 November 2024.
The Company and its subsidiaries registered in Turkey maintain their books of account and prepare their statutory financial statements in accordance with accounting principles in the Turkish Commercial Code and Tax Legislation.
The accompanying consolidated financial statements are prepared in accordance with the requirements of Capital Markets Board ("CMB") Communiqué Serial II, No: 14.1 "Basis of Financial Reporting in Capital Markets", which were published in the Official Gazette No:28676 on 13 June 2013. The accompanying financial statements are prepared based on the Turkish Accounting Standards Turkish Financial Reporting Standards and interpretations ("TAS/TFRS") that have been put into effect by the Public Oversight Accounting and Auditing Standards Authority ("POA") under Article 5 of the Communiqué.
The interim condensed consolidated financial statements for the nine months ended 30 September 2024 have been prepared in accordance with TAS 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2023.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The interim condensed consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values. The accompanying interim condensed consolidated financial statements are based on the statutory records, with adjustments and reclassifications for the purpose of fair presentation in accordance with Turkish Accounting Standards.
The interim condensed consolidated financial statements have been prepared on a going concern basis, with the assumption that the Group will benefit from its assets and fulfill its liabilities in the subsequent year and in the natural process of its business operations.
Although there is no prominent currency affecting revenue and cost of sales, the Company's functional currency is determined as Euro because; significant portion of scheduled flight revenues, which represents the Company's primary operations, is generated from European flights, Euro represents a significant component of the financial liabilities of the Company and management reports and budget enabling the Group's management to make executive decisions are prepared in Euro. The functional currency of the Company, its subsidiary and associates, other than Hitit Bilgisayar Hizmetleri A.Ş. ("Hitit Bilgisayar"), is Euro. Hitit Bilgisayar's functional currency is US Dollars.
If the legal records are kept in a currency other than the functional currency, the financial statements are initially translated into the functional currency and then translated to the Group's presentation currency, Turkish Lira ("TL").
For the companies in Turkiye that maintain financial records in TL, currency translation from TL to the functional currency is made under the framework described below:
The translation differences resulting from the above mentioned conversions are recognized under financial income / expenses in the statement of profit or loss.
Presentation currency of the Group's financial statements is TL. Financial Statements have been translated from Euro to TL in accordance with the relevant provisions of TAS 21 ("The Effects of Changes in Foreign Exchange Rates") as follows:
Translation gains or losses arising from the translations stated above are presented as foreign currency translation reserve under equity. Share capital amount, representing the nominal share capital of the Company, all other equity items are presented in historic TL terms where all translation gains or losses in relation to these balances are accounted under foreign currency translation reserve.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
In accordance with the POA's announcement dated 23 November 2023, companies applying Turkish Financial Reporting Standards are required to present their financial statements for the annual reporting periods ending on or after 31 December 2023, adjusted for the effects of inflation in accordance with the relevant accounting principles in Turkish Accounting Standard 29 "Financial Reporting in Hyperinflationary Economies" (TAS 29). Since the Company's functional currency is Euro as of the reporting date, there is no need to make any adjustments within the scope of TAS 29 in its financial statements to be prepared in accordance with TFRS. However, the financial statements as of 30 September 2024, prepared in accordance with the Tax Law, have been subject to inflation correction in accordance with the legislation.
The Euro amounts presented on the face of interim condensed consolidated financial statements refer to the original Euro (functional currency) denomined interim condensed consolidated financial statements as described under the Functional and Presentation Currency section above. In other words, the amounts shown in TL, which is the presentation currency, on the balance sheet, have been converted back to Euro using the official exchange rate announced by the CBRT as of the balance sheet date, and the Euro amounts shown on the consolidated profit or loss and other comprehensive income and consolidated cash flow statements have been converted from TL to Euro using the monthly average exchange rates.
Consolidated financial statements of Group are prepared in comparison to prior period in order to identify financial position and performance trends. In order to maintain consistency with current period consolidated financial statements, comparative information is reclassified and material changes are disclosed if necessary. Group has not made any reclassification in the prior period consolidated financial statements in order to maintain consistency with current period consolidated financial statements.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The following table illustrates the condensed consolidated subsidiaries and the Group's ownership percentage in these subsidiaries as of 30 September 2024 and 31 December 2023:
| Ownership | rate | Country of | ||
|---|---|---|---|---|
| registration and | ||||
| Name of the company | Principal activity | 30 September 2024 |
31 December 2023 | operation |
| Pegasus Havacılık | Simulator technical | |||
| Teknolojileri ve | support and | |||
| Ticaret A.Ş. | maintenance | 100% | 100% | Turkiye |
| Pegasus Airlines | ||||
| Innoviation Lab, Inc. | Technology – R&D |
100% | 100% | USA |
The following table illustrates the affiliates and joint ventures then indicates the Group's ownership percentage in these joint ventures as of 30 September 2024, 31 December 2023:
| Ownership rate | Country of | ||||
|---|---|---|---|---|---|
| Name of the company | Principal activity |
30 September 2024 |
31 December 2023 | Ownership type |
registration and operation |
| Pegasus Uçuş Eğitim Merkezi A.Ş. ("PUEM") |
Simulator training Information |
49,40% | 49,40% | Joint venture |
Turkiye |
| Hitit Bilgisayar Hizmetleri A.Ş. ("Hitit Bilgisayar") |
system solutions |
36,82% | 36,82% | Joint venture |
Turkiye |
(*) With the simulator sale in January 2023, PUEM stopped its main operations and the liquidation process continues.
Changes in accounting estimates are applied prospectively. If the change is effective for a specific period, it impacts only that period. If they relates to future periods, they are recognized prospectively both in the current period and in the future period. Significant errors identified by the Group in the accounting estimates are applied retrospectively and prior period financial statements are restated. The Group has not made any changes in accounting estimates in the current reporting period.
The accounting policies adopted in preparation of the interim condensed consolidated financial statements as of September 30, 2024 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRIC interpretations effective as of 1 January 2024 and thereafter. The effects of these standards and interpretations on the Group's financial position and performance have been disclosed in the related paragraphs.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
In March 2020 and January 2023, POA issued amendments to TAS 1 to specify the requirements for classifying liabilities as current or non-current. According to the amendments made in January 2023 if an entity's right to defer settlement of a liability is subject to the entity complying with the required covenants at a date subsequent to the reporting period ("future covenants"), the entity has a right to defer settlement of the liability even if it does not comply with those covenants at the end of the reporting period. In addition, January 2023 amendments require an entity to provide disclosure when a liability arising from a loan agreement is classified as non-current and the entity's right to defer settlement is contingent on compliance with future covenants within twelve months. This disclosure must include information about the covenants and the related liabilities. The amendments clarify that the requirement for the right to exist at the end of the reporting period applies to covenants which the entity is required to comply with on or before the reporting date regardless of whether the lender tests for compliance at that date or at a later date. The amendments also clarified that the classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability for at least twelve months after the reporting period. The amendments must be applied retrospectively in accordance with TAS 8. The Group is in the process of assessing the impact of the amendments on financial position or performance of the the Group.
In January 2023, POA issued amendments to TFRS 16. The amendments specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains. In applying requirements of TFRS 16 under "Subsequent measurement of the lease liability" heading after the commencement date in a sale and leaseback transaction, the seller lessee determines 'lease payments' or 'revised lease payments' in such a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not prescribe specific measurement requirements for lease liabilities arising from a leaseback. The initial measurement of the lease liability arising from a leaseback may result in a seller-lessee determining 'lease payments' that are different from the general definition of lease payments in TFRS 16. The seller-lessee will need to develop and apply an accounting policy that results in information that is relevant and reliable in accordance with TAS 8. A seller-lessee applies the amendments retrospectively in accordance with TAS 8 to sale and leaseback transactions entered into after the date of initial application of TFRS 16. The Group is in the process of assessing the impact of the amendments on financial position or performance of the the Group.
The amendments issued by POA in September 2023 specify disclosure requirements to enhance the current requirements, which are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity's liabilities, cash flows and exposure to liquidity risk. Supplier finance arrangements are characterized by one or more finance providers offering to pay amounts an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, suppliers are paid.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The amendments require an entity to provide information about terms and conditions of those arrangements, quantitative information on liabilities related to those arrangements as at the beginning and end of the reporting period and the type and effect of non-cash changes in the carrying amounts of those liabilities. In the context of quantitative liquidity risk disclosures required by TFRS 7, supplier finance arrangements are also included as an example of other factors that might be relevant to disclose. The amendments did not have a significant impact on the financial position or performance of the the Group.
Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the interim condensed consolidated financial statements are as follows. The Group will make the necessary changes if not indicated otherwise, which will be affecting the interim condensed consolidated financial statements and disclosures, when the new standards and interpretations become effective.
In December 2017, POA postponed the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting. Early application of the amendments is still permitted.
The Group will assess the effects of the amendments after the new standards have been finalized.
POA issued TFRS 17 in February 2019, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. TFRS 17 model combines a current statement of financial position measurement of insurance contract liabilities with the recognition of profit over the period that services are provided. The mandatory effective date of the Standard for the following entities has been postponed to accounting periods beginning on or after January 1, 2025 with the announcement made by the POA:
The amendments did not have a significant impact on the financial position or performance of the the Group.
In May 2024, POA issued amendments to TAS 21. The amendments specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. When an entity estimates a spot exchange rate because a currency is not exchangeable into another currency, it discloses information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity's financial performance, financial position and cash flows. The amendments will be effective for annual reporting periods beginning on or after 1 January 2025. Early adoption is permitted but will need to be disclosed. When applying the amendments, an entity cannot restate comparative information. The Group is in the process of assessing the impact of the amendments on financial position or performance of the the Group.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
In September 2023, POA issued amendments to TAS 12, which introduce a mandatory exception in TAS 12 from recognizing and disclosing deferred tax assets and liabilities related to Pillar Two income taxes. The amendments clarify that TAS 12 applies to income taxes arising from tax laws enacted or substantively enacted to implement the Pillar Two Model Rules published by the Organization for Economic Cooperation and Development (OECD). The amendments also introduced targeted disclosure requirements for entities affected by the tax laws. The temporary exception from recognition and disclosure of information about deferred taxes and the requirement to disclose the application of the exception apply immediately and retrospectively upon issue of the amendments.
The amendments did not have a significant impact on the financial position or performance of the Group.
The following amendments to IFRS 9 and IFRS 7 as well as IFRS 18 and IFRS 19 are issued by IASB but not yet adapted/issued by POA. Therefore, they do not constitute part of TFRS. The Group will make the necessary changes to its consolidated financial statements after the amendments and new Standard are issued and become effective under TFRS.
In May 2024, IASB issued amendments to the classification and measurement of financial instruments (amendments to IFRS 9 and IFRS 7). The amendment clarifies that a financial liability is derecognised on the 'settlement date'. It also introduces an accounting policy option to derecognise financial liabilities that are settled through an electronic payment system before settlement date if certain conditions are met. The amendment also clarified how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features as well as the treatment of non-recourse assets and contractually linked instruments. Additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income are added with the amendment. The amendments did not have a significant impact on the financial position or performance of the Group.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
In July 2024, the IASB issued Annual Improvements to IFRS Accounting Standards – Volume 11, amending the followings:
The Group is in the process of assessing the impact of the amendments on financial position or performance of the the Group.
In April 2024, IASB issued IFRS 18 which replaces IAS 1. IFRS 18 introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. IFRS 18 requires an entity to classify all income and expenses within its statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information based on the identified 'roles' of the primary financial statements and the notes. In addition, there are consequential amendments to other accounting standards, such as IAS 7, IAS 8 and IAS 34.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the the Group.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
In May 2024, IASB issued TFRS 19, which allows eligible entities to elect to apply reduced disclosure requirements while still applying the recognition, measurement and presentation requirements in other TFRS accounting standards. Unless otherwise specified, eligible entities that elect to apply TFRS 19 will not need to apply the disclosure requirements in other IFRS accounting standards. An entity that is a subsidiary, does not have public accountability and has a parent (either ultimate or intermediate) which prepares consolidated financial statements, available for public use, which comply with TFRS accounting standards may elect to apply TFRS 19. The amendments are not applicable for the Group and will not have an impact on the financial position or performance of the Group.
Due to seasonality of air passenger transportation, it's expected to incur higher revenues in the second half of the year compared to the first half. Besides, as a result of higher sales with the effect of summer season and growth in operations of the Company, trade receivables and passenger flight liabilities increased as of 30 September 2024 compared to last year-end.
The Group has prepared its financial statements in accordance with the going concern principle.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The details of investments accounted for using the equity method are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Joint ventures | ||
| Hitit Bilgisayar | 719.980.353 | 559.924.216 |
| PUEM | 45.214.478 | 42.567.171 |
| 765.194.831 | 602.491.387 |
Total profit from investments accounted for using the equity method is as follows:
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 | 30 September 2023 | 30 September 2024 | 30 September 2023 | |
| Hitit Bilgisayar | 67.621.456 | 20.119.229 | 23.933.428 | 1.583.901 |
| PUEM | (4.116.304) | (13.634.180) | (2.637.792) | (2.704.312) |
| Net profit | 63.505.152 | 6.485.049 | 21.295.636 | (1.120.411) |
The summarized financial information of the investment accounted by using the equity method is as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Current assets | 91.527.284 | 86.234.637 |
| Non-current assets | - | 302.872 |
| Current liabilities | - | (315.977) |
| Non-current liabilities | - | (53.169) |
| Net assets of joint venture | 91.527.284 | 86.168.363 |
| Group's ownership interest in the joint venture | 49,40% | 49,40% |
| Group's share in the net assets of the joint venture | 45.214.478 | 42.567.171 |
| PUEM | 1 January- | 1 January |
|---|---|---|
| 30 September 2024 | 30 September 2023 | |
| Depreciation and amortisation expense | (325.741) | (1.662.900) |
| Interest income/(expense), net | 134.283 | 3.050.099 |
| Profit for the year | (8.332.599) | (27.599.554) |
| Group's ownership interest | 49,40% | 49,40% |
| Group's share in the net profit of the joint venture | (4.116.304) | (13.634.180) |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Current assets | 910.666.590 | 741.667.453 |
| Non-current assets | 1.508.471.208 | 1.001.943.115 |
| Current liabilities | (349.800.899) | (152.015.303) |
| Non-current liabilities | (125.188.502) | (80.609.652) |
| Net assets of joint venture | 1.944.148.397 | 1.510.985.613 |
| Group's ownership interest in the joint venture | 36,82% | 36,82% |
| Goodwill | 4.144.913 | 3.579.313 |
| Group's share in the net assets of the joint venture | 719.980.353 | 559.924.216 |
| 1 January- | 1 January | |
|---|---|---|
| 30 September 2024 | 30 September 2023 | |
| Revenue | 781.679.080 | 422.986.102 |
| Depreciation and amortisation expense | (143.351.988) | (67.884.938) |
| Interest income/(expense), net | 25.551.414 | 60.786.441 |
| Profit for the year | 183.654.144 | 88.103.882 |
| Other equity changes | - | (33.461.762) |
| Group's weighted average ownership interest | 36,82% | 36,82% |
| Group's share in the net profit of the joint venture | 67.621.456 | 20.119.229 |
The Group is managed as a single business unit that provides low fares airline-related services, including scheduled services, charter services, ancillary services and other services. The Group's Chief Operating Decision Maker is the Board of Directors. The resource allocation decisions are based on the entire network and the deployment of the entire aircraft fleet. The objective in making resource allocation decisions is to maximise consolidated financial results, rather than results on individual routes within the network. All other assets and liabilities have been allocated to the Group's single reportable segment.
The ultimate parent and controlling party of the Group is Esas Holding. The Group has a number of operating and financial relationships with its shareholders and other entities owned by its shareholders (which will be referred to as " other related parties" below). The related party receivables and payables resulting from operating activities are generally not secured and interest free.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Balances with joint ventures: | ||
| PUEM | - - |
44.138 - |
| - | 44.138 |
| b) Trade payables to related parties |
||
|---|---|---|
| 30 September 2024 | 31 December 2023 | |
| Balances with parent company: | ||
| Balances with joint ventures: | ||
| Hitit Bilgisayar | 31.487.750 | 17.750.663 |
| Balances with other related parties: | ||
| Esasburda İnşaat Sanayi ve Ticaret A.Ş. (Esasburda) |
852.870 | - |
| Alarm Sağlık Hizmetleri San. ve Tic. A.Ş.(Alarm Sağlık) | - | 61.299 |
| 32.340.620 | 17.811.962 |
Transactions with Esas Holding consist of commissions paid. The Group recognizes these commissions under finance expense.
The Group received simulator training services from PUEM until January 2023 for the training of pilots. Income is generated from labor hire and common areas used.
Until May 2024 , the Group leased their head office building from Esasburda, another Esas Holding subsidiary. Esasburda also charged dues, electricity, water and heating expenses for the head office, which is disclosed within "purchases of godds and services" section below.
The Group receives software and software support services from Hitit Bilgisayar that provides information system solutions for transportation industry.
The Group receives health services from Alarm Sağlık.
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Transactions with joint ventures: | ||||
| PUEM | - | 2.030.586 | - | 438.442 |
| - | 2.030.586 | - | 438.442 |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Transactions with joint ventures: | ||||
| Hitit Bilgisayar | 189.204.694 | 111.278.104 | 71.120.418 | 42.461.624 |
| Transactions with other related parties: | ||||
| Alarm Sağlık | 800.000 | 443.598 | 200.000 | 220.672 |
| Esasburda | 17.427.086 | 8.706.473 | 6.775.470 | 3.595.601 |
| Other | 8.927 | - | - | - |
| 207.440.707 | 120.428.175 | 78.095.888 | 46.277.897 |
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Esasburda | 10.690.698 | 15.390.542 | - | 5.175.791 |
| 10.690.698 | 15.390.542 | - | 5.175.791 |
Lease expenses are recorded as depreciation and interest under TFRS 16 leases standard. Amounts presented above represent issued invoices. In May 2024, the Group decided to purchase the office building which is the basis of the lease expense. The transactions in this context have been mediated by a bank for the financing of the purchase and the Company will obtain ownership of the building from the bank at the end of the three-year lease period. In this context, the discounted net present value of the payments to be made for the building is TL 757.620.000.
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Esas Holding | - | 16.066.679 | - | 6.595.894 |
| - | 16.066.679 | - | 6.595.894 |
Key management personnel include members of the board of directors, general managers and assistant general managers. The remuneration of key management paid during the period ended 30 September 2024 and 30 September 2023 are as follows:
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Salaries and other short term benefits | 171.770.582 | 37.238.502 | 28.521.041 | 16.013.474 |
| Other long term benefits | 95.098.313 | 67.714.016 | - | - |
| 266.868.895 | 104.952.518 | 28.521.041 | 16.013.474 |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The details of short term trade receivables as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Trade receivables | 2.057.480.517 | 1.057.076.364 |
| Credit card receivables | 1.122.255.189 | 649.502.013 |
| Income accruals | 39.549.588 | 73.473.828 |
| 3.219.285.294 | 1.780.052.205 | |
| Allowance for credit risk adjustment under TFRS 9 | (146.256.176) | (111.152.608) |
| 3.073.029.118 | 1.668.899.597 |
The average collection period of trade receivables is approximately 23 days (31 December 2023: 17 days).
The details of short term trade payables as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Trade payables | 2.595.278.629 | 3.822.071.869 |
| Accrued direct operational costs | 7.138.027.724 | 2.686.231.886 |
| Trade payables to related parties (Note 5) | 32.340.620 | 17.811.962 |
| 9.765.646.973 | 6.526.115.717 |
The average payment period of trade payables is approximately 34 days (31 December 2023: 35 days).
The details of short term other receivables as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Deposits and guarantees given | 35.907.544 | 51.027.972 |
| Receivables from pilots for flight training | 12.608.694 | 18.950.846 |
| Receivables from tax office | 14.009.621 | 97.819.263 |
| Receivables from other related parties (Note 5) | - | 44.138 |
| Other receivables | 14.122.003 | 16.770.066 |
| 76.647.862 | 184.612.285 |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The details of long term other receivables as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Receivables from pilot trainings | 1.353.263.574 | 650.003.925 |
| Deposits given | 1.480.891.873 | 1.128.873.953 |
| 2.834.155.447 | 1.778.877.878 |
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Taxes payables | 174.196.839 | 167.648.460 |
| Deposits received | 306.734.396 | 92.806.678 |
| 480.931.235 | 260.455.138 |
(*) The amount of TL 40.226.210 in deposits received, consists of guarantees received from the banks regarding the valuation of derivative transactions.
The details of prepayments as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Advances on aircraft purchases | 7.728.997.607 | 7.039.814.255 |
| Advances to suppliers | 3.247.319.051 | 2.707.922.861 |
| Prepaid insurance expenses | 119.003.193 | 307.735.151 |
| Other prepaid expenses | 171.765.875 | 146.131.509 |
| 11.267.085.726 | 10.201.603.776 |
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Advances on aircraft purchases | 1.806.734.351 | 1.871.431.881 |
| Prepaid maintenance expenses | 15.639.285.283 | 10.797.055.265 |
| Other prepaid expenses | 62.693.064 | 49.517.116 |
| 17.508.712.698 | 12.718.004.262 |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The details of passenger flight liabilities as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Flight liability from ticket sales | 8.665.637.602 | 5.791.071.893 |
| Passenger airport fees received from customers (*) | 2.557.162.934 | 1.950.026.270 |
| Flight liability from flight points | 1.288.342.863 | 677.220.371 |
| 12.511.143.399 | 8.418.318.534 |
(*) Passenger airport fees received from customers is included in the ticket price, but it is not recognized as revenue when the flight carried out. The amount represents the costs to be paid to airport operators and authorities in cash.
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Advances received from customers | 1.381.426.819 | 587.402.628 |
| Other deferred revenue | 271.859.988 | 194.625.229 |
| 1.653.286.807 | 782.027.857 |
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Deferred revenue (*) | 7.832.351.036 | 3.506.810.209 |
| 7.832.351.036 | 3.506.810.209 |
(*) Long term deferred income represent discounts received in advance from supplier contracts.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Components, | ||||||||
|---|---|---|---|---|---|---|---|---|
| Machinery | Motor | Furniture and |
Leasehold | spare engine | Owned | Construction | ||
| 30 September 2024 |
equipment and |
vehicles | fixtures | improvements | repairables and |
Aircraft | in progress |
Total |
| Cost: | ||||||||
| Opening | 1.103.684.197 | 717.367.948 | 1.176.005.452 | 438.645.278 | 6.680.691.335 | 8.978.203.654 | 262.907.397 | 19.357.505.261 |
| Additions | 38.699.974 | 89.526.158 | 158.560.437 | 3.359.287 | 5.654.142.218 | 204.872.629 | 17.952.990 | 6.167.113.693 |
| Disposals | - | - | - | - | - (8.242.606.258) | - | (8.242.606.258) | |
| Transfers (*) |
- | - | - | - | (1.112.817.952) | 8.242.606.258 | - | 7.129.788.306 |
| translation differences Currency |
187.756.476 | 127.521.130 | 210.054.709 | 73.597.294 | 1.503.811.509 | 1.517.987.285 | 45.469.355 | 3.666.197.758 |
| Closing | 1.330.140.647 | 934.415.236 | 1.544.620.598 | 515.601.859 | 12.725.827.110 | 10.701.063.568 | 326.329.742 | 28.077.998.760 |
| Accumulated depreciation: |
||||||||
| Opening | (419.628.926) | (288.077.159) | (866.899.542) | (432.379.083) | (2.658.594.566) | (4.314.225.458) | - | (8.979.804.734) |
| Depreciation for the year |
(57.562.077) | (51.174.586) | (74.829.730) | (2.327.507) | (534.361.709) | (340.858.481) | - | (1.061.114.090) |
| Disposals | - | - | - | - | - | 3.316.402.087 | - | 3.316.402.087 |
| Transfers (*) |
- | - | - | - | - (3.316.402.087) | - | (3.316.402.087) | |
| Currency translation differences |
(75.036.710) | (52.506.204) | (151.260.441) | (72.462.120) | (489.856.111) | (750.078.038) | - | (1.591.199.624) |
| Closing | (552.227.713) | (391.757.949) | (1.092.989.713) | (507.168.710) | (3.682.812.386) | (5.405.161.977) | - | (11.632.118.448) |
| Net book value |
777.912.934 | 542.657.287 | 451.630.885 | 8.433.149 | 9.043.014.724 | 5.295.901.591 | 326.329.742 | 16.445.880.312 |
(*) Transfers at "components, spare engine and repairables" represent derecognition of components that are used as part of delivery maintenance provisions. Transfers in owned aircraft include transfers from right of use assets of aircraft whose lease liabilities have expired.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Machinery | Motor | Furniture and |
Leasehold | spare engine | Construction | ||
|---|---|---|---|---|---|---|---|
| 30 September 2023 |
and equipment |
vehicles | fixtures | improvements | and repairables |
in progress |
Total |
| Cost: | |||||||
| Opening | 455.640.098 | 349.627.476 | 632.787.660 | 274.988.427 | 4.224.535.938 | 232.154.809 | 6.169.734.408 |
| Additions | 61.710.320 | 40.543.931 | 46.577.873 | 1.291.354 | 1.118.671.791 | 130.219.455 | 1.399.014.724 |
| Disposals | - | (2.417.493) | - | - | - | - | (2.417.493) |
| Transfers (*) |
163.682.370 | - | - | - | (1.424.344.007) | (163.682.370) | 6.389.398.948 |
| Currency translation differences |
292.275.405 | 167.503.967 | 298.469.256 | 113.247.489 | 1.864.683.411 | 61.718.747 | 2.797.898.275 |
| Closing | 973.308.193 | 555.257.881 | 977.834.789 | 389.527.270 | 5.783.547.133 | 260.410.641 | 16.753.628.862 |
| Accumulated depreciation: |
|||||||
| Opening | (222.188.743) | (147.055.884) | (497.562.637) | (269.887.379) | (1.518.444.770) | - (2.655.139.413) | |
| Depreciation for the year |
(67.414.986) | (27.916.439) | (26.047.516) | (3.105.077) | (180.131.019) | - | (304.615.037) |
| Disposals | - | 2.417.493 | - | - | - | - | 2.417.493 |
| translation differences Currency |
(115.489.186) | (72.434.254) | (232.473.103) | (111.212.653) | (625.289.496) | - (1.156.898.692) | |
| Closing | (405.092.915) | (244.989.084) | (756.083.256) | (384.205.109) | (2.323.865.285) | - (4.114.235.649) | |
| Net book value |
568.215.278 | 310.268.797 | 221.751.533 | 5.322.161 | 3.459.681.848 | 260.410.641 | 12.639.393.213 |
(*) Transfers at "components, spare engine and repairables" represent derecognition of components that are used as part of delivery maintenance provisions.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Software | 30 September 2024 | 30 September 2023 |
|---|---|---|
| Cost: | ||
| Opening | 1.714.023.225 | 839.518.220 |
| Additions | 261.015.687 | 194.459.396 |
| Disposals | - | (31.424.835) |
| Currency translation differences | 308.702.348 | 417.171.455 |
| Closing | 2.283.741.260 | 1.419.724.236 |
| Accumulated amortization: | ||
| Opening | (1.070.519.120) | (552.566.578) |
| Amortization for the year | (192.140.858) | (118.967.440) |
| Disposals | - | 31.424.835 |
| Currency translation differences | (195.285.461) | (308.445.538) |
| Closing | (1.457.945.439) | (948.554.721) |
| Net book value | 825.795.821 | 471.169.515 |
| 30 September 2024 | Field Rental | Building | Aircraft | Other | Total |
|---|---|---|---|---|---|
| Cost: | |||||
| Opening | 474.627.190 | 253.614.344 | 148.302.857.702 | 10.142.312 | 149.041.241.548 |
| Additions | - | 843.129.828 | 25.340.812.413 | - | 26.183.942.241 |
| Disposals (*) | - | (272.763.854) | (6.251.412.085) | - | (6.524.175.939) |
| Transfers (*) | - | - | (8.242.606.258) | - | (8.242.606.258) |
| Currency translation differences | 79.324.793 | 90.977.256 | 25.709.630.048 | 1.695.092 | 25.881.627.189 |
| Closing | 553.951.983 | 914.957.574 | 184.859.281.820 | 11.837.404 | 186.340.028.781 |
| Accumulated depreciation: | |||||
| Opening | (367.824.706) | (161.309.673) | (34.992.941.609) | (10.142.312) | (35.532.218.300) |
| Depreciation for the period | (82.804.622) | (25.959.613) | (7.374.651.537) | - | (7.483.415.772) |
| Disposals (*) | - | 226.004.336 | 6.251.412.085 | - | 6.477.416.421 |
| Transfers (*) | 35.094.536 | (35.094.536) | 3.316.402.087 | - | 3.316.402.087 |
| Currency translation differences | (65.539.324) | (12.907.402) | (5.503.055.423) | (1.695.092) | (5.583.197.241) |
| Closing | (481.074.116) | (9.266.888) | (38.302.834.397) | (11.837.404) | (38.805.012.805) |
| Net book value | 72.877.867 | 905.690.686 | 146.556.447.423 | - | 147.535.015.976 |
(*) Aircraft which are sold presented as disposals and aircraft whose lease liabilities have ended are classified as transfers to property and equipment. Explanations regarding the buildings are presented under Note 5.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| 30 September 2023 | Field Rental | Building | Aircraft | Other | Total |
|---|---|---|---|---|---|
| Cost: | |||||
| Opening | 283.893.559 | 148.455.626 | 82.964.106.462 | 6.206.993 | 83.402.662.640 |
| Additions | - | - | 13.106.969.109 | - | 13.106.969.109 |
| Disposals | - | - | (5.233.433.349) | - | (5.233.433.349) |
| Transfers | - | - | (7.813.742.954) | - | (7.813.742.954) |
| Currency translation differences | 129.530.735 | 67.735.127 | 39.634.560.828 | 2.832.035 | 39.834.658.725 |
| Closing | 413.424.294 | 216.190.753 | 122.658.460.096 | 9.039.028 | 123.297.114.171 |
| Accumulated depreciation: | |||||
| Opening | (163.725.209) | (74.916.774) | (24.406.278.019) | (6.206.993) | (24.651.126.995) |
| Depreciation for the period | (57.621.795) | (19.267.197) | (4.795.036.300) | - | (4.871.925.292) |
| Disposals | - | - | 5.260.629.829 | - | 5.260.629.829 |
| Transfers | - | - | 3.733.004.387 | - | 3.733.004.387 |
| Currency translation differences | (86.764.271) | (38.215.179) | (10.560.549.058) | (2.832.035) | (10.688.360.543) |
| Closing | (308.111.275) (132.399.150) | (30.768.229.161) | (9.039.028) | (31.217.778.614) | |
| Net book value | 105.313.019 | 83.791.603 | 91.890.230.935 | - | 92.079.335.557 |
The Group is involved in lawsuits and claims that have been filed against, the total amount of claims, excluding reserved rights for excess claims, litigation risks, and interest, is TL 185.455.919 as of 30 September 2024 (31 December 2023: TL 138.437.155). These lawsuits and fines have been evaluated by the Group's management and a litigation provision of TL 50.227.330 (31 December 2023: TL 33.243.994) has been provided against claims for which management believes it is probable it will be required to make a payment. Disputes arise from guest complaints, claims by former employees of the Group and a limited number of commercial disputes.
The Group's VAT transactions regarding loyalty card practices in year 2018 have been examined in 2020. The Company have been notified with a report stating "no subject to be examined have been found" in May 2021. However the report evaluation commission has objected this verdict and TL 1.780.660 million of tax assessment has been declared to the Company. Against this tax assessment, the Company filed a tax lawsuit on September 6, 2021, the petition of the counter party was received on October 25, 2021 and the petition was answered on November 23, 2021. The 7th Tax Court of Istanbul decided to accept our case and reject all assessments on June 29, 2022, and the defendant Revenue Administration objected to the decision in August and submitted the petition of appeal to the Tax Court. The petition of appeal was notified to Company on September 28, 2022 and this petition answered within one month. Following the rejection of the opposite party's appeal, this time an appeal was made, and the defendant's appeal was served in April 2023. This petition was also answered by the Company within the time limit. The said lawsuit continues as of September 30, 2024. The Company has not recognized any provision in the financial statements in line with the opinions received from its lawyers regarding the aforementioned case.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
T&T Havalimanı İşletmeciliği İnşaat Sanayi ve Ticaret Şirketi Limited filed three lawsuits against the Company before North Cyprus Lefkoşa Court of First Instance with claims of Euro 765.689, Euro 988.985 and Euro 475.031, respectively. All three lawsuits act on same claims and the airports act no. 5/2013 whereby the plaintiff, as the operator of the Ercan Airport under North Cyprus Airports Services and Charges Law, claims Euro 15 passenger service fee for each Turkish Army Staff member traveling on the Company flights for the period between March 2013 and August 2020. Turkish Army Staff departing from North Cyprus are subject to an exemption from this fee under the law. The plaintiff's argument is based on the assumption that the Company has not carried any Turkish Army Staff members in this period of time. The Court of First Instance merged the first two lawsuits and rendered a judgment against the Company for a total principal payment obligation of Euro 1.679.114. The Company argues the legal prohibition to produce the documentation on traveling Army personnel requested by the airport operator, and further suggests that the additional controls sought by the airport operator is the responsibility of the airport operator. A judgment has not been rendered on the third lawsuit. The Company filed objection against the judgments rendered by the Court of First Instance. Considering that the claims do not rely on specific evidence and is judged on unreasonable assumptions, further taking into account the ongoing legal process, no provision has been set recognised for these lawsuits.
| 30 September 2024 | 31 December 2023 |
|---|---|
| 328.844.512.747 | 329.282.325.281 |
| 328.844.512.747 | 329.282.325.281 |
As of 30 September 2024, the Group holds the right to purchase 58 aircraft on firm order. In accordance with agreement the expected deliveries are 6 aircraft in 2024, 9 aircraft in 2025, 10 aircraft in 2026, 11 aircraft in 2027, 11 aircraft in 2028, 11 aircraft in 2029. The purchase commitments for these aircraft were calculated based on their list prices and actual purchase prices are typically lower than the list prices.
The Group has provided advances on aircraft purchases amounting to TL 9.535.731.958 (31 December 2023: TL 8.911.246.136). Of this amount, TL 7.728.997.607 is reclassified as short-term, and TL 1.806.734.351 is reclassified as long-term prepayments (31 December 2023: TL 7.039.814.268 is reclassified as short-term, TL 1.871.431.868 is reclassified as long-term prepayments).
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| 30 September 2024 | TL TOTAL | USD | EUR | TL | Other |
|---|---|---|---|---|---|
| A. Total amounts of CPM given on behalf of its own legal entity | |||||
| -Collateral | 1.398.302.000 | 20.318.530 | 12.683.914 | 96.877.672 | 126.548.598 |
| -Pledge | - | - | - | - | - |
| -Mortgage | - | - | - | - | - |
| B. Total amounts of CPM given on behalf of subsidiaries that are included in full consolidation |
|||||
| -Collateral | - | - | - | - | - |
| -Pledge | - | - | - | - | - |
| -Mortgage | - | - | - | - | - |
| C. Total amounts of CPM given in order to guarantee third parties debts for routine trade operations |
|||||
| -Collateral | - | - | - | - | - |
| -Pledge | - | - | - | - | - |
| -Mortgage | - | - | - | - | - |
| D. Total amounts of other CPM given | |||||
| i. Total amount of CPM given on behalf of the Parent | |||||
| -Collateral | - | - | - | - | - |
| -Pledge | - | - | - | - | - |
| -Mortgage | - | - | - | - | - |
| ii. Total amount of CPM given on behalf of other group companies not covered in B and C |
|||||
| -Collateral | - | - | - | - | - |
| -Pledge | - | - | - | - | - |
| -Mortgage | - | - | - | - | - |
| iii. Total amount of CPM given on behalf of third parties not covered in C | |||||
| -Collateral | - | - | - | - | - |
| -Pledge | - | - | - | - | - |
| -Mortgage | - | - | - | - | - |
| 1.398.302.000 | 20.318.530 | 12.683.914 | 96.877.672 | 126.548.598 |
The CPMs given by the Group are consisted of collaterals given to airports and terminals operators, aircraft leasing companies and service suppliers.
The other CPMs (in the scope of item D) given by the Group constitute 0% of the Group's equity as of 30 September 2024
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The details of the CPMs given by the Group as of 31 December 2023 is as follows:
| 31 December 2023 | TL TOTAL | USD | EUR | TL | Other |
|---|---|---|---|---|---|
| A. Total amounts of CPM given on behalf of its own legal entity | |||||
| -Collateral | 1.166.226.910 | 20.033.224 | 12.074.404 | 96.652.641 | 86.521.786 |
| -Pledge | - | - | - | - | - |
| -Mortgage | - | - | - | - | - |
| B. Total amounts of CPM given on behalf of subsidiaries that are included in full consolidation |
|||||
| -Collateral | - | - | - | - | - |
| -Pledge | - | - | - | - | - |
| -Mortgage | - | - | - | - | - |
| C. Total amounts of CPM given in order to guarantee third parties debts for routine trade operations |
|||||
| -Collateral | - | - | - | - | - |
| -Pledge | - | - | - | - | - |
| -Mortgage | - | - | - | - | - |
| D. Total amounts of other CPM given i. Total amount of CPM given on behalf of the Parent |
|||||
| -Collateral | - | - | - | - | - |
| -Pledge | - | - | - | - | - |
| -Mortgage | - | - | - | - | - |
| ii. Total amount of CPM given on behalf of other group companies not covered in B and C |
|||||
| -Collateral | - | - | - | - | - |
| -Pledge | - | - | - | - | - |
| -Mortgage | - | - | - | - | - |
| iii. Total amount of CPM given on behalf of third parties not covered in C | |||||
| -Collateral | - | - | - | - | - |
| -Pledge | - | - | - | - | - |
| -Mortgage | - | - | - | - | - |
| 1.166.226.910 | 20.033.224 | 12.074.404 | 96.652.641 | 86.521.786 |
The CPMs given by the Group are consisted of collaterals given to airports and terminals operators, aircraft leasing companies and service suppliers.
The other CPMs (in the scope of item D) given by the Group constitute 0% of the Group's equity as of 31 December 2023.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The details of expenses by nature for the years periods 30 September 2024 and 30 September 2023 are as follows:
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 202430 September 202330 September 202430 September 2023 | ||||
| Jet fuel expenses | 23.607.205.744 | 15.069.238.405 | 8.972.676.157 | 7.434.888.496 |
| Depreciation and amortisation expenses | 8.736.728.145 | 5.295.507.769 | 3.152.138.681 | 2.247.698.805 |
| Personnel expenses | 12.635.792.723 | 5.804.023.343 | 5.967.672.775 | 2.572.877.426 |
| Handling and station fees | 5.758.693.505 | 3.441.063.845 | 2.350.562.224 | 1.597.514.666 |
| Navigation expenses | 4.738.135.246 | 2.949.521.174 | 1.931.532.634 | 1.335.340.210 |
| Maintenance expenses | 2.839.924.626 | 1.129.473.731 | 1.050.411.307 | 565.385.660 |
| Landing expenses | 2.696.504.125 | 1.695.979.172 | 1.096.043.018 | 806.935.738 |
| Passenger service and catering expenses | 991.501.322 | 532.105.420 | 472.818.930 | 307.864.119 |
| Commission expenses | 673.464.107 | 399.796.866 | 335.157.361 | 144.280.831 |
| Short term lease expenses | 40.657.687 | 534.115.140 | 692.488 | 292.254.797 |
| Advertising expenses | 475.939.556 | 273.459.670 | 135.222.781 | 119.524.952 |
| Other expenses | 4.293.259.552 | 2.138.237.926 | 1.733.160.695 | 839.752.907 |
| 67.487.806.338 | 39.262.522.461 | 27.198.089.051 | 18.264.318.607 |
The Company's shareholding structure as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Shareholders | (%) | TL | (%) | TL |
| Esas Holding | 56,65 | 283.284.477 | 56,65 | 57.959.838 |
| Publicly held | 41,53 | 207.638.371 | 41,53 | 42.482.689 |
| Emine Kamışlı | 0,61 | 3.025.717 | 0,61 | 619.060 |
| Ali İsmail Sabancı |
0,61 | 3.025.717 | 0,61 | 619.060 |
| Kazım Köseoğlu | 0,30 | 1.512.859 | 0,30 | 309.530 |
| Can Köseoğlu | 0,30 | 1.512.859 | 0,30 | 309.530 |
| TL historic capital | 100,00 | 500.000.000 | 100,00 | 102.299.707 |
The Company's share capital consists of 500.000.000 shares of par value TL 1 each (31 December 2023: 102.299.707 shares).
Within the registered capital ceiling of TL 500.000.000, the Company's issued capital amounting to TL 102.299.707 was increased by TL 397.700.293 to TL 500.000.000, all of which was covered from the amounts in the " Share Premiums on Capital Stock" account, and capital increase was registered with the Trade Registry on May 30, 2024.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The details of revenue and cost of sales for the periods ended 30 September 2024 and 30 September 2023 are as follows:
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Scheduled flight and service revenue | 82.465.679.803 | 51.099.449.350 | 39.285.260.518 | 27.578.168.653 |
| International flight revenue | 44.015.367.822 | 30.208.220.674 | 22.278.905.246 | 17.211.367.624 |
| Domestic flight revenue | 10.993.548.833 | 5.754.583.768 | 5.323.488.279 | 3.053.905.836 |
| Service revenue | 27.456.763.148 | 15.136.644.908 | 11.682.866.993 | 7.312.895.193 |
| Charter flight and service revenue | 1.298.282.396 | 717.499.069 | 687.775.044 | 425.779.205 |
| Charter flight revenue | 1.298.282.396 | 717.499.069 | 687.775.044 | 425.779.205 |
| Other revenue | 282.425.529 | 158.040.552 | 109.416.871 | 68.592.003 |
| 84.046.387.728 | 51.974.988.971 | 40.082.452.433 | 28.072.539.861 |
The Group's revenue is disaggregated into revenue from scheduled flights, revenue from chartered flights, and other revenues in accordance with the TFRS 15 "Revenue from Contracts with Customers" standard. However, although the Group does not consider service revenues within these disaggregated revenue items as a separate performance obligation, it presents additional information due to their frequent disclosure to investors and continuous review by the authorities empowered to make decisions regarding operations.
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Europe | 33.564.931.888 | 22.753.412.190 | 17.971.919.518 | 13.249.708.739 |
| Domestic | 10.993.548.833 | 5.754.583.768 | 5.323.488.279 | 3.053.905.836 |
| Other | 10.450.435.934 | 7.454.808.484 | 4.306.985.728 | 3.961.658.885 |
| 55.008.916.655 | 35.962.804.442 | 27.602.393.525 | 20.265.273.460 |
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Jet fuel expenses | 23.607.205.744 | 15.069.238.405 | 8.972.676.157 | 7.434.888.496 |
| Depreciation and amortisation expenses | 8.350.345.270 | 5.052.056.301 | 3.010.866.564 | 2.119.399.301 |
| Personnel expenses | 11.490.493.855 | 5.218.753.472 | 5.425.462.714 | 2.313.927.775 |
| Handling and station fees | 5.758.693.505 | 3.441.063.845 | 2.350.562.224 | 1.597.514.666 |
| Navigation expenses | 4.738.135.246 | 2.949.521.174 | 1.931.532.634 | 1.335.340.210 |
| Maintenance expenses | 2.839.924.626 | 1.129.473.731 | 1.050.411.307 | 565.385.660 |
| Landing expenses | 2.696.504.125 | 1.695.979.172 | 1.096.043.018 | 806.935.738 |
| Passenger service and catering expenses | 991.501.322 | 532.105.420 | 472.818.930 | 307.864.119 |
| Insurance expenses | 464.024.453 | 277.400.214 | 151.814.697 | 80.291.698 |
| Short term lease expenses | 40.657.687 | 534.115.140 | 692.488 | 292.254.797 |
| Other expenses | 2.598.778.212 | 1.162.428.871 | 1.104.227.608 | 454.961.578 |
| 63.576.264.045 | 37.062.135.745 | 25.567.108.341 | 17.308.764.038 |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Marketing expenses | 1.697.711.880 | 975.604.221 | 689.407.795 | 397.108.313 |
| General administrative expenses | 2.213.830.413 | 1.224.782.495 | 941.572.915 | 558.446.256 |
| 3.911.542.293 | 2.200.386.716 | 1.630.980.710 | 955.554.569 |
The details of general administrative expenses and marketing expenses for the periods ended 30 September 2024 and 30 September 2023 are as follows (there are no research & development expenses in the periods ended in respective dates):
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Personnel expenses | 903.028.385 | 445.475.978 | 428.199.052 | 197.638.676 |
| Depreciation and amortisation expenses | 309.106.300 | 194.761.174 | 113.017.694 | 102.639.603 |
| IT expenses | 511.399.837 | 251.611.474 | 199.289.267 | 114.089.341 |
| Consultancy expenses | 146.720.131 | 51.230.403 | 53.905.660 | 24.154.521 |
| Communication expenses | 67.875.295 | 50.464.718 | 22.895.072 | 29.577.421 |
| Legal and notary expenses | 76.884.783 | 34.274.674 | 46.158.649 | 16.044.367 |
| Office utility expenses | 55.523.255 | 23.144.223 | 21.732.786 | 6.717.845 |
| Travel expenses | 88.507.486 | 97.043.611 | 47.708.362 | 29.311.466 |
| Training expenses | 7.636.171 | 5.368.817 | 5.038.692 | 3.134.605 |
| Other expenses | 47.148.770 | 71.407.423 | 3.627.681 | 35.138.411 |
| 2.213.830.413 | 1.224.782.495 | 941.572.915 | 558.446.256 |
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Commission expenses | 673.464.107 | 399.796.866 | 335.157.361 | 144.280.831 |
| Advertising expenses | 475.939.556 | 273.459.670 | 135.222.781 | 119.524.952 |
| Call center expenses | 156.985.783 | 77.392.831 | 51.810.508 | 25.140.060 |
| Personnel expenses | 242.270.483 | 139.793.893 | 114.011.009 | 61.310.975 |
| Depreciation and amortisation expenses | 77.276.575 | 48.690.294 | 28.254.423 | 25.659.901 |
| Other expenses | 71.775.376 | 36.470.667 | 24.951.713 | 21.191.594 |
| 1.697.711.880 | 975.604.221 | 689.407.795 | 397.108.313 |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The details of other operating income and expenses for the periods ended 30 September 2024 and 30 September 2023 are as follows:
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Reversal of doubtful cash and cash equivalents | - | 10.321.864 | - | 13.434.825 |
| Reversal of trade receivable impairment | - | 5.213.106 | - | 6.675.240 |
| Other | 14.131.779 | 432.429 | 4.789.421 | - |
| 14.131.779 | 15.967.399 | 4.789.421 | 20.110.065 |
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Foreign exchange loss from operating activities | 507.709.355 | 350.479.658 | 823.895.131 | (140.264.130) |
| Penalty expense | 9.615.070 | 3.055.827 | - | 429.033 |
| Cash and cash equivalents allowance expense | 15.679.871 | - | 11.568.103 | - |
| Trade receivables allowance expense | 8.168.026 | - | - | - |
| Doubtful receivable allowance expense | 16.747.499 | 11.717.542 | 15.016.828 | 4.019.544 |
| Donations (*) | - | 8.000.000 | - | - |
| Other | 109.141.547 | 104.436.515 | 71.677.370 | 67.693.286 |
| 667.061.368 | 477.689.542 | 922.157.432 | (68.122.267) |
(*) Includes donations made to the relevant institutions regarding the earthquake disaster that occurred on February 6, 2023.
The details of income from investing activities for the periods ended 30 September 2024 and 30 September 2023 are as follows:
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 | 30 September 2023 30 September 2024 30 September 2023 | |||
| Interest income from eurobond | 606.415.227 | 385.047.146 | 201.907.875 | 168.359.798 |
| Interest income from currency protected instruments | 552.841.543 | 537.709.107 | 205.349.425 | 76.902.817 |
| Gain arising from aircraft sale | 236.962.782 | - | - | - |
| Gain from eurobond sales (*) | 41.795.833 | 10.018.619 | 3.926.197 | 2.485.443 |
| Other income | 2.852.365 | 12.244.893 | - | 5.290.641 |
| 1.440.867.750 | 945.019.765 | 411.183.497 | 253.038.699 |
(*) The amounts represents gains arising from the sale of financial investments that are carried at fair value through other comphensive income.
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 | 30 September 2023 30 September 2024 30 September 2023 | |||
| Financial investments allowance expense | 238.182.318 | 76.782.534 | 24.644.845 | (15.371.837) |
| 238.182.318 | 76.782.534 | 24.644.845 | (15.371.837) |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The details of financial income and expenses for the periods ended 30 September 2024 and 30 September 2023 are as follows:
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 202430 September 2023 30 September 2024 30 September 2023 | ||||
| Foreign exchange gain | 389.895.954 | - | 1.801.532.387 | - |
| Interest income | 1.236.472.467 | 392.717.759 | 486.984.226 | 276.492.254 |
| 1.626.368.421 | 392.717.759 | 2.288.516.613 | 276.492.254 |
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 202430 September 2023 30 September 2024 30 September 2023 | ||||
| Interest expense on leases | 4.439.136.828 | 2.616.946.239 | 1.535.044.638 | 1.161.039.020 |
| Interest expense on bank loans | 436.189.730 | 194.990.527 | 92.864.625 | 70.536.946 |
| Interest expense on issued debt instruments | 807.169.445 | 621.774.117 | 248.137.943 | 248.660.261 |
| Foreign exchange loss | - | 106.833.739 | - | 693.140.338 |
| Losses from derivative contracts | 99.888.823 | 35.774.895 | 139.988.655 | 40.562.803 |
| Commission and other expenses | 1.267.664.594 | 597.565.719 | 628.808.349 | 258.893.938 |
| 7.050.049.420 | 4.173.885.236 | 2.644.844.210 | 2.472.833.306 |
Earnings per share disclosed in the consolidated statements of income are determined by dividing the net income by the weighted number of shares that have been outstanding during the period concerned. Weighted average number of shares for 2023 and 2024 is calculated using the actual number of shares outstanding during the period, taking into consideration the actual date of capital increase.
Number of total shares and calculation of earnings per share at 30 September 2024 and 30 September 2023 are as follows:
| 1 January- | 1 January- | 1 July - | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 30 September 202330 September 202430 September 2023 | ||||
| Net profit | 11.320.281.004 | 9.046.139.766 | 10.824.093.347 | 7.719.239.456 |
| Weighted average number of shares | ||||
| issued in the year | 280.829.401 | 102.299.707 | 500.000.000 | 102.299.707 |
| Income per share | 40,31 | 88,43 | 21,65 | 75,46 |
| 30 September 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Asset | Liability | Asset | Liability | |
| Short term | - | 297.090.558 | 12.607.533 | 109.079.828 |
| Long term | - | 271.863.753 | - | 64.250.780 |
| - | 568.954.311 | 12.607.533 | 173.330.608 |
Explanations related to derivative instruments are disclosed in Note 24.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Short term | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Financial investments measured at amortized cost | 4.263.660.282 | 7.042.103.028 |
| Financial assets recognized at fair value through profit or loss | 3.564.384.903 | 2.041.208.673 |
| Time Deposit (*) | 624.891.370 | 9.496.768.180 |
| Allowance for credit risk adjustment under TFRS 9 | (16.776.077) | (45.453.939) |
| 8.436.160.478 | 18.534.625.942 |
(*) The balance includes exchange rate protected time deposits amounting to TL 624.891.370, with original maturities between three months and one year.
| Long term | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Financial investments measured at amortized cost | 4.913.327.816 | 1.741.816.637 |
| Allowance for credit risk adjustment under TFRS 9 | (334.441.341) | (67.581.142) |
4.578.886.475 1.674.235.495
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short term financial investments measured at amortized cost | 4.263.660.282 | 7.042.103.028 |
| Long term financial investments measured at amortized cost | 4.913.327.816 | 1.741.816.637 |
| 9.176.988.098 | 8.783.919.665 | |
| 30 September 2024 | 31 December 2023 | |
| Government Debt Securities | 6.536.095.837 | 6.564.347.573 |
| Corporate Debt Securities | 2.640.892.261 | 2.219.572.092 |
| 9.176.988.098 | 8.783.919.665 |
The Group's fixed income securities are accounted at their amortized costs using the effective interest rate. These securities are denominated in Euros, US Dollars and Pounds and pay fixed interest every year and every six months.
The weighted average coupon interest rates of existing Euro, US Dollar and Pounds financial investments that are measured at amortized cost as of 30 September 2024 and 31 December 2023 are as follows:
| Weighted average | |||
|---|---|---|---|
| Coupon Interest Rate (%) | FX Type | Asset Value TL | |
| Government Debt Securities | 7,6 | US Dollars | 5.707.920.368 |
| Government Debt Securities | 6,0 | Euro | 397.908.972 |
| Government Debt Securities | 6,7 | GBP | 430.266.497 |
| Corporate Debt Securities | 8,1 | US Dollars | 1.686.480.019 |
| Corporate Debt Securities | 6,7 | Euro | 954.412.242 |
| 30 September 2024 | 9.176.988.098 |
| Weighted average | |||
|---|---|---|---|
| Coupon Interest Rate (%) | FX Type | Asset Value TL | |
| Government Debt Securities | 6,9 | US Dollars | 6.564.347.573 |
| Corporate Debt Securities | 8,5 | US Dollars | 2.219.572.092 |
| 31 December 2023 | 8.783.919.665 |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Government Debt Securities | 2.500.766.883 | 1.882.477.151 |
| Corporate Debt Securities | 1.063.618.020 | 158.731.522 |
| 3.564.384.903 | 2.041.208.673 |
The coupon interest rates of the financial investments in US Dollars that are measured by their fair value and continues as of the reporting date are as follows.
| Weighted average | |||
|---|---|---|---|
| Coupon Interest Rate (%) | FX Type | Asset Value TL | |
| Government Debt Securities | 8,3 | US Dollars | 2.500.766.883 |
| Corporate Debt Securities | 8,1 | US Dollars | 1.063.618.020 |
| 30 September 2024 | 3.564.384.903 |
| Weighted average | |||
|---|---|---|---|
| Coupon Interest Rate (%) | FX Type | Asset Value TL | |
| Government Debt Securities | 7,8 | US Dollars | 1.882.477.151 |
| Corporate Debt Securities | 9,3 | US Dollars | 158.731.522 |
| 31 December 2023 | 2.041.208.673 |
The financial investments at fair value through other comprehensive income is composed of bonds. These investments are denominated in US Dollars and pay fixed interest every year or every six months.
The details of financial liabilities as of 30 September 2024 and 31 December 2023 are as follows:
| Short term financial liabilities | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Short term bank borrowings | 5.084.515.230 | 5.353.784.770 |
| 5.084.515.230 | 5.353.784.770 |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Short term portion of long term financial liabilities | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Short term portion of long term bank borrowings | 1.482.994.249 | 1.011.358.155 |
| Principal and interest of bonds issued | 6.321.815.404 | 968.515.134 |
| Discount and commissions of bonds issued | (77.749.734) | (35.165.530) |
| Lease liabilities | 14.177.801.745 | 11.326.083.111 |
| Short term portion of long term | ||
| lease liabilities | 1.628.766.916 | 1.372.450.408 |
| Short term portion of long term | ||
| lease liabilities with purchase option | 12.549.034.829 | 9.953.632.703 |
| 21.904.861.664 | 13.270.790.870 |
| Long term financial liabilities | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Long term bank borrowings | 913.506.383 | 2.106.183.775 |
| Issued debt instruments (*) | 16.510.859.313 | 10.252.656.283 |
| Discount and commissions of bonds issued | (79.186.630) | (46.823.151) |
| Lease liabilities | 113.094.737.887 | 88.581.646.542 |
| Long term lease liabilities | 6.784.720.376 | 4.784.464.987 |
| Long term lease liabilities with purchase option | 106.310.017.511 | 83.797.181.555 |
| 130.439.916.953 | 100.893.663.449 |
(*) The Group issued bonds to qualified investors abroad on April 29, 2021, which were issued under the "Rule 144A" and/or "Regulation S" format, have a nominal value of US\$ 375.000.000, at 9,25% interest rate and the maturity is 5 years with an early payment option in the third and fourth years. As of September 12, 2024, tender offer process is completed and the purchase and settlement by the Group of notes with a total nominal value of US\$ 211.086.000 are concluded. Following the settlement of the notes that are purchased, the total nominal value of the outstanding notes due 2026 will be US 163.914.000.
The Group issued bonds to qualified investors abroad on September 30, 2024, which were issued under the "Rule 144A" and/or "Regulation S" format, have a nominal value of US\$ 500.000.000, at 8,00% interest rate and the maturity is 7 years with an early payment option starting at the end of three years.
The bonds are traded on the Irish Stock Exchange (Euronext Dublin). There are some financial covenants in the Terms and Conditions of the notes. The covenants of the notes are; negative pledge, limitation in indebtedness, publication of financial information, limitations on transactions with affiliates, minimum liquidity, merger, consolidation and sale of all assets substantially, limitation on asset sales, limitation on restricted payments. As of 30 September 2024, the Group complied with all covenants.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The effective interest rates, original currency and TL equivalents of the short and long term bank borrowings as of 30 September 2024 and 31 December 2023 are as follows :
| Weighted average | Original | TL | ||
|---|---|---|---|---|
| 30 September 2024 | interest rate (%) | Currency | amount | equivalent |
| Short term bank borrowings | 6,42 | Euro | 133.739.682 | 5.084.515.230 |
| 5.084.515.230 | ||||
| Weighted average | Original | TL | ||
| 31 December 2023 | interest rate (%) | Currency | amount | equivalent |
| Short term bank borrowings | 7,04 | Euro | 164.358.114 | 5.353.784.770 |
| 5.353.784.770 | ||||
| Weighted average | Original | TL | ||
| 30 September 2024 | interest rate (%) | Currency | amount | equivalent |
| Short term portion of long term bank borrowings | 5,74 | Euro | 39.007.687 | 1.482.994.249 |
| 1.482.994.249 | ||||
| Weighted average | Original | TL | ||
| 31 December 2023 | interest rate (%) | Currency | amount | equivalent |
| Short term portion of long term bank borrowings | 5,42 | Euro | 31.048.114 | 1.011.358.155 |
| 1.011.358.155 | ||||
| Weighted average | Original | TL | ||
| 30 September 2024 | interest rate (%) | Currency | amount | equivalent |
| Long term bank borrowings | 4,51 | Euro | 24.028.260 | 913.506.383 |
| 913.506.383 | ||||
| Weighted average | Original | TL | ||
| 31 December 2023 | interest rate (%) | Currency | amount | equivalent |
| Long term bank borrowings | 5,57 | Euro | 64.658.631 | 2.106.183.775 |
| 2.106.183.775 | ||||
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The details of lease liabilities as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Less than 1 year | 19.748.843.895 | 15.612.828.462 |
| Between 1 - 5 years | 71.597.111.366 | 51.728.967.777 |
| Over 5 years | 63.464.520.072 | 51.771.613.861 |
| 154.810.475.333 | 119.113.410.100 | |
| Less: Future interest expenses | (27.537.935.701) | (19.205.680.447) |
| 127.272.539.632 | 99.907.729.653 |
Present value of minimum lease payments of lease liabilities are as follows;
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Less than 1 year | 14.177.801.745 | 11.326.083.111 |
| Between 1 - 5 years | 56.869.947.742 | 42.463.408.399 |
| Over 5 years | 56.224.790.145 | 46.118.238.143 |
| 127.272.539.632 | 99.907.729.653 |
The Group acquire certain of its handling equipment and aircraft through lease arrangements. The average lease term is 5,90 years. For the period ended 30 September 2024, the floating interest rate applicable to Euro-denominated lease liabilities, amounting to TL 92.058.373.629, is 4,33% (31 December 2023: 3,92%) and the floating rate applicable to US Dollar-denominated lease liabilities, amounting to TL 12.112.976.223, is 7, 24% (31 December 2023: 6,71%).
The Group's activities expose financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management plan focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance. The Group uses derivative financial instruments to hedge certain risk exposures.
The Group's activities expose primarily to the financial risks of changes in foreign currency exchange rates, fuel price and interest rates. The Group enters into a variety of derivative financial instruments to manage exposure to foreign currency, fuel price and interest rate risk.
The Group has transactions in non-Euro currencies including Turkish Lira revenues, US Dollar borrowings and fuel purchases. These non-Euro denominated transactions expose the Group to foreign currency risk. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The Group's foreign currency position of monetary and non-monetary assets/liabilities for the years ended 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | TL Total | USD | TL | GBP | Other |
|---|---|---|---|---|---|
| 1. Trade receivables | 2.003.469.979 | 7.077.282 | 1.328.809.755 | 2.185.052 | 333.886.664 |
| 2a. Monetary financial assets | 46.615.874.651 | 1.194.187.131 | 4.571.025.052 | 14.485.322 | 675.337.151 |
| 2b. Non monetary financial assets | - | - | - | - | - |
| 3. Other | 217.857.562 | 4.477.772 | 55.401.928 | 189.376 | 1.184.052 |
| 4. CURRENT ASSETS | 48.837.202.192 | 1.205.742.185 | 5.955.236.735 | 16.859.750 | 1.010.407.867 |
| 5. Trade receivables | - | - | - | - | - |
| 6a. Monetary financial assets | 4.578.886.507 | 134.317.586 | - | - | - |
| 6b. Non monetary financial assets | - | - | - | - | - |
| 7. Other | 1.531.901.549 | 43.467.874 | 647.541 | 63.000 | 46.565.113 |
| 8. NON CURRENT ASSETS | 6.110.788.056 | 177.785.460 | 647.541 | 63.000 | 46.565.113 |
| 9. TOTAL ASSETS | 54.947.990.248 | 1.383.527.645 | 5.955.884.276 | 16.922.750 | 1.056.972.980 |
| 10. Trade payables | 4.404.383.802 | 76.987.762 | 1.562.692.055 | 333.552 | 201.988.715 |
| 11. Financial liabilities | 9.705.801.277 | 284.405.744 | 10.409.464 | - | - |
| 12a. Other liabilitites, monetary | 5.196.172.214 | 46.329.423 | 3.556.880.649 | 220.338 | 49.887.166 |
| 12b. Other liabilities, non monetary | - | - | - | - | - |
| 13. CURRENT LIABILITIES | 19.306.357.293 | 407.722.929 | 5.129.982.168 | 553.890 | 251.875.881 |
| 14. Trade payables | - | - | - | - | - |
| 15. Financial liabilities | 45.387.789.354 | 1.331.171.748 | 8.144.465 | - | - |
| 16a. Other lliabilities, monetary | 4.588.224.201 | 134.591.499 | - | - | - |
| 16b. Other liabilities, non monetary | - | - | - | - | - |
| 17. NON CURRENT LIABILITIES | 49.976.013.555 | 1.465.763.247 | 8.144.465 | - | - |
| 18. TOTAL LIABILITIES | 69.282.370.848 | 1.873.486.176 | 5.138.126.633 | 553.890 | 251.875.881 |
| 19. Net asset / (liability) position of Off-statement of | |||||
| financial position derivatives (19a-19b) | (63.422.041) | 45.897.963 | - | (35.750.000) | - |
| 19.a Off-statement of financial position foreign currency | |||||
| derivative assets | 1.564.661.559 | 45.897.963 | - | - | - |
| 19b. Off-statement of financial position foreign currency | |||||
| derivative liabilities | 1.628.083.600 | - | - | 35.750.000 | - |
| 20. Net foreign currency asset/(liability) | |||||
| position | (14.334.380.600) | (489.958.531) | 817.757.643 | 16.368.860 | 805.097.099 |
| 21. Net foreign currency asset / (liability) | |||||
| position of monetary items | |||||
| (1+2a+3+5+6a+7-10-11-12a-14-15-16a) | (14.334.380.600) | (489.958.531) | 817.757.643 | 16.368.860 | 805.097.099 |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| 31 December 2023 | TL Total | USD | TL | GBP | Other |
|---|---|---|---|---|---|
| 1. Trade receivables | 1.131.637.640 | 7.469.645 | 684.110.649 | 1.460.848 | 172.937.455 |
| 2a. Monetary financial assets | 24.563.475.881 | 668.634.650 | 3.870.699.898 | 9.097.013 | 668.767.798 |
| 2b. Non monetary financial assets | - | - | - | - | - |
| 3. Other | 101.813.001 | 6.084.964 | (85.591.461) | 189.475 | 1.179.809 |
| 4. CURRENT ASSETS | 25.796.926.522 | 682.189.259 | 4.469.219.086 | 10.747.336 | 842.885.062 |
| 5. Trade receivables | - | - | - | - | - |
| 6a. Monetary financial assets | 1.674.235.510 | 56.872.890 | - | - | - |
| 6b. Non monetary financial assets | - | - | - | - | - |
| 7. Other | 898.327.414 | 25.840.671 | 631.013 | 1.000 | 136.956.118 |
| 8. NON CURRENT ASSETS | 2.572.562.924 | 82.713.561 | 631.013 | 1.000 | 136.956.118 |
| 9. TOTAL ASSETS | 28.369.489.446 | 764.902.820 | 4.469.850.099 | 10.748.336 | 979.841.180 |
| 10. Trade payables | 3.806.923.984 | 70.554.166 | 1.288.319.658 | 789.344 | 412.062.295 |
| 11. Financial liabilities | 4.083.837.381 | 138.430.478 | 8.693.284 | - | - |
| 12a. Other liabilitites, monetary | 3.054.811.062 | 21.299.965 | 2.365.708.819 | 133.847 | 57.058.154 |
| 12b. Other liabilities, non monetary | - | - | - | - | - |
| 13. CURRENT LIABILITIES | 10.945.572.427 | 230.284.609 | 3.662.721.761 | 923.191 | 469.120.449 |
| 14. Trade payables | - | - | - | - | - |
| 15. Financial liabilities | 35.836.803.936 | 1.216.807.510 | 16.181.095 | - | - |
| 16a. Other lliabilities, monetary | 4.436.132.056 | 150.693.047 | - | - | - |
| 16b. Other liabilities, non monetary | - | - | - | - | - |
| 17. NON CURRENT LIABILITIES | 40.272.935.992 | 1.367.500.557 | 16.181.095 | - | - |
| 18. TOTAL LIABILITIES | 51.218.508.419 | 1.597.785.166 | 3.678.902.856 | 923.191 | 469.120.449 |
| 19. Net asset / (liability) position of Off-statement of | |||||
| financial position derivatives (19a-19b) | (43.592.362) | 9.584.500 | - | (8.700.000) | - |
| 19.a Off-statement of financial position foreign currency | |||||
| derivative assets | 282.150.428 | 9.584.500 | - | - | - |
| 19b. Off-statement of financial position foreign currency | |||||
| derivative liabilities | 325.742.790 | - | - | 8.700.000 | - |
| 20. Net foreign currency asset/(liability) | |||||
| position | (22.849.018.973) | (832.882.346) | 790.947.243 | 9.825.145 | 510.720.731 |
| 21. Net foreign currency asset / (liability) | |||||
| position of monetary items | |||||
| (1+2a+3+5+6a+7-10-11-12a-14-15-16a) | (22.849.018.973) | (832.882.346) | 790.947.243 | 9.825.145 | 510.720.731 |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The Group is exposed to foreign exchange risk arising primarily with respect to the US Dollar and Turkish Lira. The following table details the Group's sensitivity to a 10% increase and decrease in US Dollar, and TL. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated items and adjusts their translation at the period end for a 10% change in foreign currency rates.
Foreign currency sensitivity tables as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | Profit/(Loss) | Shareholders' equity | ||
|---|---|---|---|---|
| If foreign currency | If foreign currency | If foreign currency | If foreign currency | |
| appreciated 10% | depreciated 10% | appreciated 10% | depreciated 10% | |
| Effect of 10% change in USD rate | ||||
| USD net asset / (liability) | (1.670.268.632) | 1.670.268.632 | - | - |
| Part of hedged from USD risk | 156.466.156 | (156.466.156) | - | - |
| USD net effect | (1.513.802.476) | 1.513.802.476 | - | - |
| Effect of 10% change in TL rate | ||||
| TL net asset / (liability) | 81.775.764 | (81.775.764) | 7.576.598.435 | (7.576.598.435) |
| Part of hedged from TL risk | - | - | - | - |
| TL net effect | 81.775.764 | (81.775.764) | 7.576.598.435 | (7.576.598.435) |
| Effect of 10% change in GBP rate | ||||
| GBP net asset / liability | 74.545.098 | (74.545.098) | - | |
| Part of hedged from GBP risk | (162.808.360) | 162.808.360 | - | - |
| GBP net effect | (88.263.262) | 88.263.262 | - | - - |
| 31 December 2023 | Profit/(Loss) | Shareholders' equity | ||
| If foreign currency | If foreign currency | If foreign currency | If foreign currency | |
| appreciated 10% | depreciated 10% | appreciated 10% | depreciated 10% | |
| Effect of 10% change in USD rate | ||||
| USD net asset / (liability) | (2.451.855.708) | 2.451.855.708 | - | - |
| Part of hedged from USD risk | 28.215.043 | (28.215.043) | - | - |
| USD net effect | (2.423.640.665) | 2.423.640.665 | - | - |
| Effect of 10% change in TL rate | ||||
| TL net asset / (liability) | 79.094.724 | (79.094.724) | 5.479.918.416 | (5.479.918.416) |
| Part of hedged from TL risk TL net effect |
- 79.094.724 |
- (79.094.724) |
- 5.479.918.416 |
- (5.479.918.416) |
| Effect of 10% change in GBP rate | ||||
| GBP net asset / liability | 36.787.013 | (36.787.013) | - | - |
| Part of hedged from GBP risk GBP net effect |
(32.574.279) 4.212.734 |
32.574.279 (4.212.734) |
- - |
- - |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
Group Management believes that the carrying values of financial instruments approximates their fair values, except for financial investments, lease liabilities and issued debt instruments. The fair value of financial investments and issued bonds is determined by considering the market value (level 1).
| Financial and assets |
|||||
|---|---|---|---|---|---|
| derivative instruments |
Derivative instruments |
||||
| Financial assets |
which are recognized at |
which are recognized |
|||
| and liabilities at |
fair value in |
fair value in at |
|||
| 30 September 2024 |
amortized cost |
shareholders' equity |
profit/loss | Carrying amount |
Note |
| Financial assets |
|||||
| Cash and cash equivalents |
47 040 611 014 |
- | - | 47 040 611 014 |
27 |
| Trade receivables |
3 073 029 118 |
- | - | 3 073 029 118 |
6 |
| - Other | 3 073 029 118 |
- | - | 3 073 029 118 |
6 |
| Other receivables |
2 910 803 309 |
- | - | 2 910 803 309 |
|
| - Related party |
- | - | - | - | 5 |
| - Other | 2 910 803 309 |
- | - | 2 910 803 309 |
|
| Financial investments |
381 046 284 9 |
3 564 384 903 |
- | 13 015 046 953 |
22 |
| Financial liabilities |
|||||
| Bank borrowings |
7 481 015 862 |
- | - | 7 481 015 862 |
22 |
| Issued debt instruments |
12 779 914 875 |
- | - | 22 675 738 353 |
|
| Trade payables |
9 765 646 973 |
- | - | 9 765 646 973 |
6 |
| - Related party |
32 340 620 |
- | - | 32 340 620 |
5 |
| - Other | 9 733 306 353 |
- | - | 9 733 306 353 |
|
| Other payables |
480 931 235 |
- | - | 480 931 235 |
| Financial and assets |
|||||
|---|---|---|---|---|---|
| derivative instruments |
Derivative instruments |
||||
| Financial assets |
which are recognized at |
which are recognized |
|||
| liabilities and at |
fair in value |
fair in value at |
|||
| 31 December 2023 |
amortized cost |
shareholders' equity |
profit/loss | Carrying amount |
Note |
| Financial assets |
|||||
| Cash and cash equivalents |
16 078 358 927 |
- | - | 16 078 358 927 |
27 |
| Trade receivables |
1 668 899 597 |
- | - | 1 668 899 597 |
6 |
| - Other | 1 668 899 597 |
- | - | 1 668 899 597 |
6 |
| Other receivables |
1 963 490 163 |
- | - | 1 963 490 163 |
|
| - Related party |
44 138 |
- | - | 44 138 |
5 |
| - Other | 1 963 446 025 |
- | - | 1 963 446 025 |
|
| Financial investments |
18 514 030 082 |
2 041 208 673 |
- | 20 208 861 437 |
22 |
| Derivative financial assets |
- | - | 533 12 607 |
533 12 607 |
21 |
| Financial liabilities |
|||||
| Bank borrowings |
8 471 326 700 |
- | - | 8 471 326 700 |
22 |
| Issued debt instruments |
11 296 013 203 |
- | - | 11 139 182 736 |
|
| Trade payables |
6 526 115 717 |
- | - | 6 526 115 717 |
6 |
| - Related party |
17 811 962 |
- | - | 17 811 962 |
5 |
| - Other | 6 508 303 755 |
- | - | 6 508 303 755 |
|
| Other payables |
260 455 138 |
- | - | 260 455 138 |
|
| Derivative financial liabilities |
- | 173 330 608 |
- | 173 330 608 |
21 |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The fair values of financial assets and financial liabilities are determined and grouped as follows:
| Financial assets / (Financial liabilities) |
Fair value as at | Fair value hierarchy |
Valuation technique |
|
|---|---|---|---|---|
| 30 September 2024 | 31 December 2023 | |||
| Fuel purchase option contracts |
(505.151.008) | (173.330.608) | Level 2 | Discounted cash flow method |
| Currency forward contracts |
(63.803.303) | 12.607.533 | Level 2 | Discounted cash flow method |
| Currency | Fuel purchase | |||
| forward | option | |||
| 30 September 2024 | contracts | contracts | Total | |
| Fair value: | ||||
| Opening | 12.607.533 | (173.330.608) | (160.723.075) | |
| Fair value increase | ||||
| Recognized in equity | - | (331.820.400) | (331.820.400) | |
| Recognized in profit or loss | (76.410.836) | - | (76.410.836) | |
| Closing | (63.803.303) | (505.151.008) | (568.954.311) | |
| Liabilities | (63.803.303) | (505.151.008) | (568.954.311) | |
| Total net assets and liabilities | (63.803.303) | (505.151.008) | (568.954.311) |
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Currency | Fuel purchase | ||
|---|---|---|---|
| forward | option | ||
| 31 December 2023 | contracts | contracts | Total |
| Fair value: | |||
| Opening | - | 353.399.409 | 353.399.409 |
| Fair value increase / (decrease) | |||
| Recognized in equity | - | (526.730.017) | (526.730.017) |
| Recognized in profit or loss | 12.607.533 | - | 12.607.533 |
| Closing | 12.607.533 | (173.330.608) | (160.723.075) |
| Assets | 12.607.533 | - | 12.607.533 |
| Liabilities | - | (173.330.608) | (173.330.608) |
| Total net assets and liabilities | 12.607.533 | (173.330.608) | (160.723.075) |
The Group has forward fuel purchase option contracts, which are subject to hedge accounting, at a rate of 49,2% and 24,3% of the total fuel consumption estimated to occur in a period shorter than 1 year and more than 1 year, respectively. In line with its hedging policy, the Group can conclude contracts with maturities up to 24 months. As of 30 September 2024, the contracts last until December 2025. The total nominal value of these contracts is USD 499,9 million, and the weighted average price is in the range of USD 68-87. The ineffective portion of the hedge is not material as of 30 September 2024. In the current period, the income that is reclassified from hedging gain/(losses) fund under shareholders' equity to fuel expenses in the profit or loss statement is amounting to TL 85.585.786 (30 September 2023: TL 205.013.049 derivative expenses are charged to finance expenses).
Not available.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The Group is subject to corporate tax applicable in Turkiye. The corporate tax rate in Turkiye is applied as 25% for the 2023 taxation period. It continues to be applied as 25% for the 2024 taxation period. While calculating deferred tax on temporary differences, the Company takes into account the tax rates applicable at the date of closing of the temporary differences.
The tax expense components of 30 September 2024 and 30 September 2023 are presented below:
| 1 January- | 1 January | |
|---|---|---|
| 30 September 2024 | 30 September 2023 | |
| Tax income/(expense) | ||
| - Deferred tax income/(expense) | (427.880.382) | (298.159.404) |
| Total tax income/(expense) | (427.880.382) | (298.159.404) |
The Group's earnings from investments tied to an incentive certificate are subject to corporate tax at discounted rates, starting from the accounting period in which the investment is partially or fully operational, until the investment contribution amount is reached. In this context, tax advantage amounting to TL 7.456.416.861 (31 December 2023: TL 4.665.178.489) that the Group will benefit from in the foreseeable future as of 30 September 2024 is reflected in the interim condensed consolidated financial statements as a deferred tax asset. As a result of the recognition of the mentioned tax advantage as of 30 September 2024, deferred tax income amounting to TL 1.853.629.603 has recognised in the interim condensed consolidated profit or loss statement for the period 1 January - 30 September 2024.
Deferred tax assets are recognized when it is determined that taxable income is likely to occur in the coming years. In cases where taxable income is likely to occur, deferred tax assets are calculated over deductible temporary differences, tax losses and tax advantages vested in indefinite-lived investment incentives that allow reduced corporate tax payments. In this context, the Group bases the reflection of deferred tax assets arising from investment incentives in the interim condensed consolidated financial statements on long-term plans and evaluates the recoverability of deferred tax assets related to these investment incentives as of each reporting date. This evaluation is conducted based on business models that include estimations of taxable profits.
In the sensitivity analysis carried out as of 30 September 2024, when the inputs in the basic macroeconomic and sectoral assumptions that make up the business plans are increased/decreased by 10%, the duration of the foreseen period for recognizing deferred tax assets related to investment incentives remains unchanged.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
The details of cash and cash equivalents as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Cash on hand | 4.700.676 | 3.547.661 |
| Cash at banks | 47.059.174.978 | 16.082.396.035 |
| - Demand deposits | 644.706.023 | 1.013.999.269 |
| - Time deposits | 46.414.468.955 | 15.068.396.766 |
| Allowance for credit risk adjustment under TFRS 9 | (23.264.640) | (7.584.769) |
| 47.040.611.014 | 16.078.358.927 |
The weighted average interest rates of time deposits are as presented below:
| Weighted average | |||
|---|---|---|---|
| 30 September 2024 | interest rates | Total | |
| USD deposits | 4,26 % | 34.613.689.146 | |
| EUR deposits | 2,68 % | 7.207.015.137 | |
| TL deposits | 47,17 % | 4.027.534.179 | |
| GBP deposits | 0,57 % | 132.653.536 | |
| IRR deposits | 5,00 % | 433.576.957 | |
| 46.414.468.955 |
| Weighted average | ||
|---|---|---|
| 31 December 2023 | interest rates | Total |
| USD deposits | 4,24 % | 10.443.064.645 |
| EUR deposits | 3,16 % | 2.414.971.977 |
| TL deposits | 40,80 % | 1.899.286.123 |
| GBP deposits | 0,26 % | 311.074.021 |
| 15.068.396.766 |
As of 30 September 2024 and 31 December 2023 time deposits maturities are less than 90 days.
(Amounts are expressed in full TL and full Euros unless otherwise stated.)
| Euro | Euro | Euro | Euro | |
|---|---|---|---|---|
| 1 January- | 1 January- | 1 July - | 1 July - | |
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Scheduled flight and service revenue | 2.329.145.183 | 2.027.118.967 | 1.069.780.036 | 945.113.537 |
| International flight revenue | 1.240.462.653 | 1.184.856.492 | 606.863.778 | 589.705.787 |
| Domestic flight revenue | 310.461.681 | 229.617.422 | 144.900.747 | 104.703.706 |
| Service revenue | 778.220.849 | 612.645.053 | 318.015.511 | 250.704.044 |
| Charter flight and service revenue | 36.347.990 | 27.664.763 | 18.731.523 | 14.611.195 |
| Charter flight revenue | 36.347.990 | 27.664.763 | 18.731.523 | 14.611.195 |
| Other revenue | 7.848.539 | 6.694.909 | 2.889.690 | 2.065.070 |
| 2.373.341.712 | 2.061.478.639 | 1.091.401.249 | 961.789.802 |
| Euro | Euro | Euro | Euro | |
|---|---|---|---|---|
| 1 January- | 1 January- | 1 July - | 1 July - | |
| 30 September 2024 30 September 2023 30 September 2024 30 September 2023 | ||||
| Jet fuel expenses | 671.302.439 | 606.255.673 | 243.922.370 | 256.448.356 |
| Depreciation and amortisation expenses | 249.382.548 | 220.596.763 | 85.722.536 | 77.839.528 |
| Personnel expenses | 354.496.586 | 229.256.275 | 158.787.414 | 87.370.323 |
| Handling and station fees | 162.703.478 | 137.871.278 | 63.523.167 | 55.491.211 |
| Navigation expenses | 132.632.765 | 114.703.376 | 51.560.032 | 45.314.374 |
| Maintenance expenses | 80.619.737 | 48.625.405 | 28.005.248 | 18.095.326 |
| Landing expenses | 76.019.426 | 67.516.762 | 29.425.653 | 27.955.386 |
| Commission expenses | 18.703.819 | 15.955.564 | 8.829.014 | 5.181.225 |
| Advertising expenses | 13.769.647 | 11.221.206 | 3.734.591 | 4.205.603 |
| Passenger service and catering expenses | 27.052.803 | 18.477.865 | 12.220.171 | 7.932.055 |
| Short term lease expenses | 1.222.828 | 21.256.275 | 13.679 | 10.041.000 |
| Other expenses | 124.208.241 | 94.807.486 | 48.360.799 | 31.728.756 |
| 1.912.114.317 | 1.586.543.928 | 734.104.674 | 627.603.143 |
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