Quarterly Report • May 8, 2024
Quarterly Report
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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTH INTERIM PERIOD ENDED 31 MARCH 2024
| INDEX | PAGE | |
|---|---|---|
| CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 1-2 | |
| CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER | ||
| COMPREHENSIVE INCOME | 3 | |
| CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 4 | |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | 5 | |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 6-45 | |
| NOTE 1 | ORGANISATION AND OPERATIONS OF THE GROUP | 6 |
| NOTE 2 | BASIS OF PRESENTATION OF FINANCIAL STATEMENTS | 6-11 |
| NOTE 3 | INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | 12-13 |
| NOTE 4 | SEGMENT REPORTING | 13 |
| NOTE 5 | RELATED PARTY DISCLOSURES | 13-15 |
| NOTE 6 | TRADE RECEIVABLES AND PAYABLES OTHER RECEIVABLES | 16-17 |
| NOTE 7 | PREPAYMENTS, DEFERRED INCOME AND CONTRACT LIABILITIES | 17-18 |
| NOTE 8 | PROPERTY AND EQUIPMENT | 19-20 |
| NOTE 9 | INTANGIBLE ASSETS | 21 |
| NOTE 10 | RIGHT OF USE ASSETS | 21-22 |
| NOTE 11 | PROVISIONS, CONTINGENT ASSETS AND LIABILITIES | 22-23 |
| NOTE 12 | COMMITMENTS | 23-25 |
| NOTE 13 | EXPENSES BY NATURE | 26 |
| NOTE 14 | SHAREHOLDERS' EQUITY | 26 |
| NOTE 15 | REVENUE AND COST OF SALES | 27 |
| NOTE 16 | GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES | 28 |
| NOTE 17 | OTHER OPERATING INCOME AND EXPENSES | 29 |
| NOTE 18 | INCOME AND EXPENSES FROM INVESTING ACTIVITIES | 29-30 |
| NOTE 19 | FINANCIAL INCOME AND EXPENSES | 30 |
| NOTE 20 | EARNINGS / LOSS PER SHARE | 30 |
| NOTE 21 | DERIVATIVE FINANCIAL INSTRUMENTS | 31 |
| NOTE 22 | FINANCIAL INSTRUMENTS | 31-36 |
| NOTE 23 | NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS | 36-39 |
| NOTE 24 | FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES) | 40-43 |
| NOTE 25 | EVENTS AFTER REPORTING PERIOD | 43 |
| NOTE 26 | INCOME TAX EXPENSE | 44 |
| NOTE 27 | EXPLANATIONS RELATED TO STATEMENT OF CASH FLOW | 45 |
(Amounts are expressed in full Euros (EUR) unless otherwise stated.)
| Notes | Current period 31 March 2024 |
Prior period 31 December 2023 |
|
|---|---|---|---|
| ASSETS | |||
| Current assets | 1.647.425.428 | 1.473.620.823 | |
| Cash and cash equivalents | 27 | 813.387.991 | 493.596.374 |
| Financial assets | 22 | 341.466.277 | 569.002.359 |
| Trade receivables | 6 | 83.581.352 | 51.234.258 |
| Trade receivables from third parties | 83.581.352 | 51.234.258 | |
| Other receivables | 6 | 5.448.357 | 5.667.491 |
| Other receivables from related parties | 5 | 139.202 | 1.355 |
| Other receivables from third parties | 5.309.155 | 5.666.136 | |
| Derivative financial instruments | 21 | 4.985.219 | 387.044 |
| Inventories | 38.102.419 | 33.010.286 | |
| Prepayments | 7 | 353.316.229 | 313.183.370 |
| Current income tax assets | 820.929 | 600.261 | |
| Other current assets | 6.316.655 | 6.939.380 | |
| Non-Current assets | 4.765.433.877 | 4.726.283.979 | |
| Financial assets | 22 | 76.055.876 | 51.398.067 |
| Other receivables | 6 | 58.622.449 | 54.610.528 |
| Other receivables from third parties | 58.622.449 | 54.610.528 | |
| Derivative financial instruments | 21 | 3.097.663 | - |
| Investments accounted by using the equity method | 3 | 19.391.598 | 18.496.139 |
| Property and equipment | 8 | 346.786.285 | 318.589.424 |
| Intangible assets | 9 | 20.864.544 | 19.755.206 |
| Right of use assets | 10 | 3.440.642.263 | 3.484.661.746 |
| Prepayments | 7 | 411.230.047 | 390.435.418 |
| Deferred tax assets | 388.743.152 | 388.337.451 | |
| TOTAL ASSETS | 6.412.859.305 | 6.199.904.802 |
(Amounts are expressed in full Euros (EUR) unless otherwise stated.)
| Current period 31 March |
Prior period 31 December |
||
|---|---|---|---|
| Notes | 2024 | 2023 | |
| LIABILITIES | |||
| Current liabilities | 1.438.793.890 | 1.141.521.116 | |
| Short term borrowings | 22 | 274.008.542 | 164.358.114 |
| Short term portion of long term borrowings | 22 | 59.491.433 | 59.701.410 |
| Short term portion of long term lease liabilities | 22 | 345.629.677 | 347.704.239 |
| Trade payables | 6 | 216.343.884 | 200.348.000 |
| Trade payables to related parties | 5 | 827.905 | 546.817 |
| Trade payables to third parties | 215.515.979 | 199.801.183 | |
| Employee benefit obligations | 33.240.887 | 12.226.645 | |
| Other payables | 6 | 13.139.258 | 7.995.823 |
| Other payables to third parties | 13.139.258 | 7.995.823 | |
| Contract liabilities | 7 | 408.813.948 | 258.437.538 |
| Derivative financial instruments | 21 | - | 3.348.688 |
| Deferred income | 7 | 27.809.927 | 24.007.806 |
| Short term provisions | 60.316.334 | 63.392.853 | |
| Short term provisions for employee benefits | 48.362.249 | 48.747.417 | |
| Other short term provisions | 11.954.085 | 14.645.436 | |
| Non-Current liabilities | 3.388.090.918 | 3.380.071.120 | |
| Long term borrowings | 22 | 366.313.457 | 377.971.840 |
| Long term lease liabilities | 22 | 2.702.670.522 | 2.719.405.614 |
| Derivative financial instruments | 7 | - | 1.972.462 |
| Deferred income | 149.228.590 | 107.657.057 | |
| Long term provisions | 169.878.349 | 173.064.147 | |
| Long term provisions for employee benefits | 37.063.528 | 36.877.444 | |
| Other long term provisions | 132.814.821 | 136.186.703 | |
| SHAREHOLDERS' EQUITY | 1.585.974.497 | 1.678.312.566 | |
| Paid-in share capital | 14 | 60.544.134 | 60.544.134 |
| Share premiums on capital stock | 194.089.305 | 194.089.305 | |
| Other comprehensive income/expense | |||
| not to be reclassified to profit or loss | |||
| Actuarial losses on defined benefit plans | (2.835.364) | (3.254.102) | |
| Other comprehensive income/expense | |||
| to be reclassified to profit or loss | |||
| Currency translation differences | 9.405.840 | 8.808.787 | |
| Hedge fund | 5.764.187 | (3.990.862) | |
| Gain on financial assets measured at fair value | 1.331.520 | 1.483.652 | |
| Restricted profit reserves | 4.047.406 | 4.047.406 | |
| Retained earnings | 1.416.584.246 | 626.643.772 | |
| Net income for the period | (102.956.777) | 789.940.474 | |
| TOTAL LIABILITIES AND EQUITY | 6.412.859.305 | 6.199.904.802 |
(Amounts are expressed in full Euros (EUR) unless otherwise stated.)
| Current period 1 January- |
Prior period 1 January |
||
|---|---|---|---|
| Profit or loss | Notes | 31 March 2024 | 31 March 2023 |
| Revenue | 15 | 518.722.226 | 442.402.540 |
| Cost of sales (-) | 15 | (532.082.958) | (423.281.007) |
| Gross profit | (13.360.732) | 19.121.533 | |
| General administrative expenses (-) | 16 | (17.610.318) | (14.684.593) |
| Selling and marketing expenses (-) | 16 | (13.562.378) | (10.637.277) |
| Other operating income | 17 | 9.375.562 | 1.776.938 |
| Other operating expenses (-) | 17 | (1.687.884) | (1.872.203) |
| Operating profit | (36.845.750) | (6.295.602) | |
| Income from investing activities | 18 | 21.242.655 | 7.139.935 |
| Expenses from investing activities (-) | 18 | (4.887.978) | - |
| Share of investments income accounted for | |||
| using the equity method | 3 | 436.647 | 496.336 |
| Operating profit before financial expense | (20.054.426) | 1.340.669 | |
| Financial income | 19 | 10.500.394 | 25.561.966 |
| Financial expense (-) | 19 | (97.150.959) | (49.614.415) |
| Profit before tax | (106.704.991) | (22.711.780) | |
| Tax income/(expense) | 3.748.214 | 474.723 | |
| Deferred tax income/(expense) | 26 | 3.748.214 | 474.723 |
| Net profit for the period | (102.956.777) | (22.237.057) | |
| Income/(loss) per share EUR cents | 20 | (1,01) | (0,22) |
| Other comprehensive income | |||
| Items not to be reclassified to profit or loss | |||
| Actuarial (losses) / gains on defined benefit plans | 558.317 | (2.578.865) | |
| Deferred tax effect | (139.579) | 515.773 | |
| Items to be reclassified to profit or loss | |||
| Currency translation differences | 597.053 | (188.670) | |
| Gain on financial assets measured at fair value | (202.842) | (656.224) | |
| Cash flow hedge | 13.006.733 | (17.043.348) | |
| Deferred tax effect | (3.200.974) | 3.539.915 | |
| Other comprehensive income | 10.618.708 | (16.411.419) | |
| Total comprehensive income | (92.338.069) | (38.648.476) |
(Amounts are expressed in full Euros (EUR) 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 | |||||||||
| Paid in | Share premiums on | Actuarial gains/(losses) | Currency translation |
Hedge | Gain on financial assets | Restricted profit | Net profit/(loss) | ||||
| share capital | capital stock | on defined benefit plans | differences | reserve | measured at fair value | reserves Retained earnings | for the year | Shareholders' equity | |||
| As at 1 January 2023 | 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 | - | - | - | - | (14.182.139) | - | - | 430.759.013 | (416.576.874) | - | |
| Net profit/(loss) for the period | - | - | - | - | - | - | - | - | (22.237.057) | (22.237.057) | |
| Other comprehensive income / (expense) | - | - | (2.063.092) | (188.670) | 547.461 | (524.979) | - | - | (14.182.139) | (16.411.419) | |
| As at 31 March 2023 | 60.544.134 | 194.089.305 | (5.804.494) | 7.882.370 | 547.461 | 821.790 | 4.047.406 | 626.643.772 | (22.237.057) | 866.534.687 | |
| As at 1 January 2024 | 60.544.134 | 194.089.305 | (3.254.102) | 8.808.787 | (3.990.862) | 1.483.652 | 4.047.406 | 626.643.772 | 789.940.474 | 1.678.312.566 | |
| Transfers | - | - | - | - | 3.990.862 | - | - | 789.940.474 | (793.931.336) | - | |
| Net profit/(loss) for the period | - | - | - | - | - | - | - | - | (102.956.777) | (102.956.777) | |
| Other comprehensive income / (expense) | - | - | 418.738 | 597.053 | 5.764.187 | (152.132) | - | - | 3.990.862 | 10.618.708 | |
| As at 31 March 2024 | 60.544.134 | 194.089.305 | (2.835.364) | 9.405.840 | 5.764.187 | 1.331.520 | 4.047.406 | 1.416.584.246 | (102.956.777) | 1.585.974.497 |
(Amounts are expressed in full Euros (EUR) unless otherwise stated.)
| Current period 1 January- |
Prior period 1 January |
||
|---|---|---|---|
| Notes | 31 March 2024 | 31 March 2023 | |
| A. CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Income/(loss) for the period | (102.956.777) | (22.237.057) | |
| Adjustments to reconcile the income/(loss) | |||
| Depreciation and amortization | 8-9-10 | 82.543.630 | 72.946.148 |
| Adjustments related with impairments | 4.788.631 | 1.439.106 | |
| Provision for doubtful receivable | (99.347) | 1.776.225 | |
| Adjustments related with financial investment impairments | 4.887.978 | (337.119) | |
| Adjustments related with provisions | 2.705.135 | (4.895.972) | |
| Provision for employee benefits | 1.946.091 | 575.649 | |
| Legal provison | 133.295 | 143.754 | |
| Change in redelivery provision | 625.749 | (5.615.375) | |
| Interest and commission income | 41.741.985 | 39.196.094 | |
| Adjustments related with fair value expense (income) | 76.178 | 586.044 | |
| Adjustments related with fair value expense (income) of financial assets | 76.178 | 586.044 | |
| 3 | |||
| Gain on equity investments accounted for using the equity method | (436.647) | (496.336) | |
| Current tax expense | (3.748.214) 23.684.705 |
(474.723) | |
| Other provisions related with investing or financing activities | (21.859.763) | ||
| Changes in working capital Increase in trade receivables |
4.682.392 | ||
| (32.247.747) | |||
| Increase in other receivables, prepayments and other assets | (90.654.009) | (712.760) | |
| Increase in inventories | (5.092.133) | (76.930) | |
| Increase in trade payables | 15.995.884 | (26.626.753) | |
| Increase in deferred income, other payables and other current liabilities | 221.182.764 | 78.074.518 | |
| Net cash generated from operating activities | 157.583.385 | 119.544.008 | |
| Payment for the employee benefits provisions | (752.789) | (2.164.025) | |
| Payment for other provisions | (7.165) | (15.471) | |
| 156.823.431 | 117.364.512 | ||
| B. CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Net cash changes from acquisition and sale of debt instruments of other entities | 55.413.333 | 1.355.563 | |
| Net cash changes from purchase and sale of property, equipment and intangible assets | 43.121.685 | (4.449.553) | |
| Interest received from financial investment | 15.860.686 | 7.622.424 | |
| Changes in cash advances and payables | (43.820.166) | (42.890.842) | |
| Other cash changes | 146.932.472 | (7.075.683) | |
| 217.508.010 | (45.438.091) | ||
| C. CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Increase in borrowings | 93.184.210 | 111.650.000 | |
| Repayment of borrowings | (14.500.000) | (78.650.000) | |
| Repayment of principal in lease liabilities | (84.169.612) | (83.784.227) | |
| Interest and commission paid | (51.042.810) | (30.596.730) | |
| Interest received | 10.363.418 | 3.248.391 | |
| (46.164.794) | (78.132.566) | ||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | |||
| BEFORE TRANSLATION EFFECT (A+B+C) | 328.166.647 | (6.206.145) | |
| D. TRANSLATION DIFFERENCES EFFECT ON CASH AND CASH EQUIVALENTS | (8.375.030) | (1.846.068) | |
| NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D) | 319.791.617 | (8.052.213) | |
| E. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | |||
| AT THE BEGINNING OF THE PERIOD | 27 | 493.596.374 | 529.637.313 |
| AT THE END OF THE PERIOD (A+B+C+D+E) | 27 | 813.387.991 | 521.585.100 |
(Amounts are expressed full Euros (EUR) 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 31 March 2024 and 31 December 2023 are as follows:
| 31 March 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 31 March 2024 is 8.204 (31 December 2023: 7.670). The address of its principal office is Aeropark Yenişehir Mah. Osmanlı Bulvarı No: 11/A Kurtkoy-Pendik İstanbul.
The condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB).
Board of Directors has approved the condensed consolidated financial statements as of 31 March 2024 and delegated authority for publishing it on 8 May 2024.
The 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 condensed consolidated financial statements are based on the statutory records, with adjustments and reclassifications for the purpose of fair presentation in accordance with IFRS.
The condensed consolidated financial statements have been prepared on a going concern basis, assuming that the Group will continue to utilize its assets effectively and meet its obligations in the normal course of business operations.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
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 Group and management reports and budget enabling the Company's management to make executive decisions are prepared in Euro. The functional currency of the Company and its subsidiaries is Euro.
For the companies in Turkiye that maintain financial records in TL, currency translation from TL to the functional currency Euro 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.
In accordance with the requirements of IAS 29, Financial Reporting in Hyperinflationary Economies ("IAS 29"), regarding the changes in the general purchasing power of TL, financial statements prepared in the currency of an economy with hyperinflation should be expressed in the unit of measurement valid at the balance sheet date, and the amounts in previous periods should be prepared in the same way. Considering that the Company's functional currency is EUR as of the reporting date, no adjustments within the scope of IAS 29 are necessary in its consolidated financial statements prepared in accordance with IFRS. However, the financial statements as at 31 December 2023, prepared in accordance with the Tax Law, have been subject to inflation correction in accordance with the relevant legislation.
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 significant changes are disclosed if necessary.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The following table illustrates the condensed consolidated subsidiaries and the Group's ownership percentage in these subsidiaries as of 31 March 2024 and 31 December 2023:
| Ownership rate |
Country of | |||
|---|---|---|---|---|
| registration and | ||||
| Name of the company | Principal activity | 31 March 2024 |
31 December 2023 | operation |
| Pegasus Havacılık | Simulator technical | |||
| Teknolojileri ve | support and | |||
| Ticaret A.Ş. | maintenance | 100% | 100% | Turkey |
| 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 31 March 2024, 31 December 2023:
| Ownership rate | Country of | ||||
|---|---|---|---|---|---|
| Name of the company | Principal activity |
31 March 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 |
Turkey |
| Hitit Bilgisayar Hizmetleri A.Ş. ("Hitit Bilgisayar") |
system solutions |
36,82% | 36,82% | Joint venture |
Turkey |
(*) 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 condensed consolidated financial statements as of March 31, 2024 are consistent with those of the previous financial year, except for the adoption of new and amended IFRS and IFRIC 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 full Euros (EUR) unless otherwise stated.)
In March 2020 and January 2023, IASB issued amendments to IAS 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 IAS 8. The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
In January 2023, the Board issued amendments to IFRS 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 recognize any amount of the gain or loss that relates to the right of use it retains. In applying requirements of IFRS 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 IFRS 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 IAS 8. A seller-lessee applies the amendments retrospectively in accordance with IAS 8 to sale and leaseback transactions entered into after the date of initial application of IFRS 16. The Group is in the process of assessing the impact of the amendments on financial position or performance of 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 full Euros (EUR) 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 IFRS 7, supplier finance arrangements are also included as an example of other factors that might be relevant to disclose. Early adoption is permitted but will need to be disclosed. Overall, the Group expects no significant impact on its balance sheet and equity.
Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the condensed consolidated financial statements are as follows. The Group will make the necessary changes if not indicated otherwise, which will be affecting the condensed consolidated financial statements and disclosures, when the new standards and interpretations become effective.
In December 2015, IASB 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.
IASB issued IFRS 17, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. IFRS 17 model combines a current balance sheet measurement of insurance contract liabilities with the recognition of profit over the period that services are provided. Certain changes in the estimates of future cash flows and the risk adjustment are also recognised over the period that services are provided. Entities have an option to present the effect of changes in discount rates either in profit and loss or in OCI. The standard includes specific guidance on measurement and presentation for insurance contracts with participation features. In accordance with amendments issued by POA in December 2021, entities have transition option for a "classification overlay" to avoid possible accounting mismatches between financial assets and insurance contract liabilities in the comparative information presented on initial application of IFRS 17.
The mandatory effective date of the Standard for the following entities has been postponed to accounting periods beginning on or after 1 January 2025 with the announcement made by the POA:
Insurance, reinsurance and pension companies.
Banks that have ownership/investments in insurance, reinsurance and pension companies and
Other entities that have ownership/investments in insurance, reinsurance and pension companies.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
In September 2023, POA issued amendments to IAS 12, which introduce a mandatory exception in IAS 12 from recognizing and disclosing deferred tax assets and liabilities related to Pillar Two income taxes. The amendments clarify that IAS 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. Overall, the Group expects no significant impact on its balance sheet and equity.
The following amendments to IAS 21 and IFRS 18 are issued by IASB but not yet adapted/issued by POA. Therefore, they do not constitute part of IFRS. The Group will make the necessary changes to its condensed consolidated financial statements after the amendments and new Standard are issued and become effective under IFRS.
In August 2023, IASB issued amendments to IAS 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. Overall, the Group expects no significant impact on its balance sheet and equity
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. IFRS 18 and the related amendments are effective for reporting periods beginning on or after 1 January 2027, but earlier application is permitted. IFRS 18 will be applied retrospectively. Overall, the Group expects no significant impact on its balance sheet and equity
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The details of investments accounted for using the equity method are as follows:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Joint ventures | ||
| Hitit Bilgisayar | 18.084.810 | 17.189.351 |
| PUEM | 1.306.788 | 1.306.788 |
| 19.391.598 | 18.496.139 |
Total profit from investments accounted for using the equity method is as follows:
| 1 January- | 1 January | ||
|---|---|---|---|
| 31 March 2024 | 31 March 2023 | ||
| Hitit Bilgisayar | 436.647 | 626.197 | |
| PUEM | - | (129.861) | |
| Net profit | 436.647 | 496.336 |
The summarized financial information of the investment accounted by using the equity method is as follows:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Current assets | 2.647.354 | 2.647.354 |
| Non-current assets | 9.298 | 9.298 |
| Current liabilities | (9.700) | (9.700) |
| Non-current liabilities | (1.632) | (1.632) |
| Net assets of joint venture | 2.645.320 | 2.645.320 |
| Group's ownership interest in the joint venture | 49,40% | 49,40% |
| Group's share in the net assets of the joint venture | 1.306.788 | 1.306.788 |
| PUEM | 1 January- 31 March 2024 |
1 January 31 March 2023 |
| Depreciation&amortisation expense | - | (25.206) |
| Interest income/(expense), net | - | 19.777 |
| Profit for the year | - | (262.876) |
| Group's ownership interest | 49,40% | 49,40% |
| Group's share in the net profit of the joint venture | - | (129.861) |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Current assets | 21.042.808 | 22.768.764 |
| Non-current assets | 35.393.833 | 30.759.077 |
| Current liabilities | (4.932.878) | (4.666.782) |
| Non-current liabilities | (2.693.291) | (2.474.670) |
| Net assets of joint venture | 48.810.472 | 46.386.389 |
| Group's ownership interest in the joint venture 0 |
36,82% | 36,82% |
| Goodwill | 112.794 | 109.883 |
| Group's share in the net assets of the joint venture | 18.084.810 | 17.189.351 |
| 1 January- 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Revenue | 6.435.547 | 5.912.052 |
| Depreciation&amortisation expense | (1.209.534) | (887.524) |
| Interest income/(expense), net | (856.856) | 204.712 |
| Profit for the year 0 |
1.185.896 | 1.700.698 |
| Group's weighted average ownership interest 0 |
36,82% | 36,82% |
| Group's share in the net profit of the joint venture | 436.647 | 626.197 |
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). There are no set payment terms for any of the related party transactions. The related party receivables and payables resulting from operating activities are generally not secured and interest free.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Balances with joint ventures: | ||
| PUEM | 1.447 | 1.355 |
| Balances with other related parties: | ||
| Esasburda İnşaat Sanayi ve Ticaret A.Ş. |
137.755 | - |
| 139.202 | 1.355 | |
| b) Trade payables to related parties |
||
| 31 March 2024 | 31 December 2023 | |
| Balances with parent company: | ||
| Balances with joint ventures: | ||
| Hitit Bilgisayar | 824.737 | 544.935 |
| Balances with other related parties: | ||
| Alarm Sağlık Hizmetleri San. ve Tic. A.Ş.(Alarm Sağlık) | 3.168 | 1.882 |
Various transactions with Esas Holding consist of commissions paid. The Group recognizes these commissions within finance expense.
The Group leases their head office building from Esasburda , another Esas Holding subsidiary, and records the expenses as depreciation and interest under leases standard. Also, the Group recognizes the dues, electricity, water and heating expenses for the head office.
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.
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- 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Transactions with joint ventures: | ||
| PUEM | - | 48.306 |
| - | 48.306 |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| 1 January- 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Transactions with joint ventures: | ||
| Hitit Bilgisayar | 1.938.894 0 |
1.721.553 |
| Transactions with other related parties: | ||
| Alarm Sağlık | 6.019 | 5.525 |
| Esasburda | 88.887 | 99.273 |
| Other | 262 | - |
| 2.034.062 | 1.826.351 |
| 1 January- 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Esasburda(*) | 239.763 | 254.569 |
| 239.763 | 254.569 |
(*)Rent expenses are recorded as depreciation and interest under IFRS 16 leases standard. Amounts presented above represent issued invoices.
| 1 January- | 1 January | ||
|---|---|---|---|
| 31 March 2024 | 31 March 2023 | ||
| Esas Holding | - | 172.417 | |
| - | 172.417 |
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 31 March 2024 and 31 March 2023 are as follows:
| 1 January- 31 March 2024 |
1 January | ||
|---|---|---|---|
| 31 March 2023 | |||
| Salaries and other short term benefits | 596.065 | 426.172 | |
| Other long term benefits | 67.503 | - | |
| 663.568 | 426.172 |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The details of short term trade receivables as of 31 March 2024 and 31 December 2023 are as follows:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Trade receivables | 38.318.673 | 32.451.637 |
| Credit card receivables | 45.030.770 | 19.939.338 |
| Income accruals | 4.262.768 | 2.255.604 |
| 87.612.211 | 54.646.579 | |
| Less: Allowance for impairment | (4.030.859) | (3.412.321) |
| 83.581.352 | 51.234.258 |
The average collection period of trade receivables is approximately 28 days (31 December 2023: 17 days).
The details of short term trade payables as of 31 March 2024 and 31 December 2023 are as follows:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Trade payables | 66.886.222 | 117.335.409 |
| Accrued direct operational costs | 148.629.757 | 82.465.774 |
| Trade payables to related parties (Note 5) | 827.905 | 546.817 |
| 216.343.884 | 200.348.000 |
The average credit period of trade payables is approximately 35 days (31 December 2023: 35 days).
The details of short term other receivables as of 31 March 2024 and 31 December 2023 are as follows:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Deposits and guarantees given | 1.580.058 | 1.566.529 |
| Receivables from pilots for flight training | 606.933 | 581.780 |
| Receivables from tax office | 2.810.713 | 3.002.995 |
| Receivables from other related parties (Note 5) | 139.202 | 1.355 |
| Other receivables | 311.451 | 514.832 |
| 5.448.357 | 5.667.491 |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The details of long term other receivables as of 31 March 2024 and 31 December 2023 are as follows:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Receivables from pilot trainings | 23.583.865 | 19.954.747 |
| Deposits given | 35.038.584 | 34.655.781 |
| 58.622.449 | 54.610.528 | |
| Short term other payables | ||
| 31 March 2024 | 31 December 2023 | |
| Taxes payables | 7.800.644 | 5.146.711 |
| Deposits received | 5.338.614 | 2.849.112 |
| 13.139.258 | 7.995.823 |
(*) The amount of EUR 1.636.802 in deposits and guarantees received, consists of guarantee deposits received to banks related to valuation of derivative contracts.
The details of prepayments as of 31 March 2024 and 31 December 2023 are as follows:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Advances on aircraft purchases | 228.951.248 | 216.118.250 |
| Advances to suppliers | 106.142.041 | 83.131.675 |
| Prepaid insurance expenses | 12.400.722 | 9.447.292 |
| Other prepaid expenses | 5.822.218 | 4.486.153 |
| 353.316.229 | 313.183.370 | |
| Long term prepayments | ||
| 31 March 2024 | 31 December 2023 | |
| Advances on aircraft purchases | 51.334.046 | 57.451.883 |
| Prepaid maintenance expenses | 358.334.430 | 331.463.388 |
| Other prepaid expenses | 1.561.571 | 1.520.147 |
| 411.230.047 | 390.435.418 |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The details of contract liabilities as of 31 March 2024 and 31 December 2023 are as follows:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Flight liability from ticket sales | 302.492.038 | 177.782.577 |
| Passenger airport fees received from customers (*) | 80.621.616 | 59.864.685 |
| Flight liability from flight points | 25.700.294 | 20.790.276 |
| 408.813.948 | 258.437.538 |
(*) 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.
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Advances received from customers | 22.675.093 | 18.032.923 |
| Other deferred income | 5.134.834 | 5.974.883 |
| 27.809.927 | 24.007.806 | |
| Long term deferred income | ||
| 31 March 2024 | 31 December 2023 | |
| Deferred income | 149.228.590 | 107.657.057 |
| 149.228.590 | 107.657.057 |
Long term deferred income represent discounts received in advance from supplier contracts.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| 31 March 2024 |
Machinery and equipment |
Motor vehicles |
Furniture and fixtures |
Leasehold improvements |
spare engine and repairables |
Owned Aircraft |
Construction in progress |
Total |
|---|---|---|---|---|---|---|---|---|
| Opening | 33.882.470 | 22.022.783 | 36.102.691 | 13.466.158 | 205.052.745 | 275.625.690 | 8.071.106 | 594.223.643 |
| Additions | 191.395 | 64.168 | 2.756.054 | - | 42.675.687 | - | 191.538 | 45.878.842 |
| Transfers (*) | - | - | - | - | (8.348.532) | - | - | (8.348.532) |
| Closing | 34.073.865 | 22.086.951 | 38.858.745 | 13.466.158 | 239.379.900 | 275.625.690 | 8.262.644 | 631.753.953 |
| Accumulated depreciation: |
||||||||
| Opening | (12.882.366) | (8.843.803) | (26.613.317) | (13.273.790) | (81.576.702) | (132.444.241) | - | (275.634.219) |
| Depreciation for the year | (534.552) | (456.191) | (672.586) | (34.068) | (4.394.459) | (3.241.593) | - | (9.333.449) |
| Closing | (13.416.918) | (9.299.994) | (27.285.903) | (13.307.858) | (85.971.161) | (135.685.834) | - | (284.967.668) |
| Net book value | 20.656.947 | 12.786.957 | 11.572.842 | 158.300 | 153.408.739 | 139.939.856 | 8.262.644 | 346.786.285 |
(*) Transfers in components represent transfers to delivery maintenance provisions and aircraft. Transfers in owned aircraft include transfers from right of use assets of aircraft whose lease obligations have expired.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| Components, | ||||||||
|---|---|---|---|---|---|---|---|---|
| Machinery | Motor | Furniture and |
Leasehold | spare engine | Owned | Construction | ||
| 31 March 2023 |
and equipment |
vehicles | fixtures | improvements | and repairables |
Aircraft | in progress |
Total |
| Cost: | ||||||||
| Opening | 22.856.402 | 17.538.461 | 31.742.705 | 13.794.322 | 211.916.764 | - | 11.645.647 | 309.494.301 |
| Additions | 356.663 | 1.222 | 984.640 | 44.069 | 16.170.171 | - | 3.062.479 | 20.619.244 |
| Disposals | - | - | (4.852) | - | - | - | - | (4.852) |
| Transfers (*) |
8.100.000 | - | - | - | (15.541.339) | - | (8.100.000) | (15.541.339) |
| Closing | 31.313.065 | 17.539.683 | 32.722.493 | 13.838.391 | 212.545.596 | - | 6.608.126 | 314.567.354 |
| Accumulated depreciation: |
||||||||
| Opening | (11.145.716) | (7.376.805) | (24.959.374) | (13.538.437) | (76.170.728) | - | - | (133.191.060) |
| Depreciation for the year |
(612.297) | (335.644) | (522.576) | (46.204) | (2.532.488) | - | - | (4.049.209) |
| Disposals | - | - | 122 | - | - | - | - | 122 |
| Closing | (11.758.013) | (7.712.449) | (25.481.828) | (13.584.641) | (78.703.216) | - | - | (137.240.147) |
| Net book value |
19.555.052 | 9.827.234 | 7.240.665 | 253.750 | 133.842.380 | - | 6.608.126 | 177.327.207 |
(*) Transfers in components represent transfers to delivery maintenance provisions and aircraft.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| NOTE 9 - INTANGIBLE ASSETS |
|||
|---|---|---|---|
| Software | 31 March 2024 | 31 March 2023 | |
| Cost: | |||
| Opening | 52.619.528 | 42.112.988 | |
| Additions | 2.880.889 | 2.368.648 | |
| Closing | 55.500.417 | 44.481.636 | |
| Accumulated amortization: | |||
| Opening | (32.864.322) | (27.718.553) | |
| Amortization for the year | (1.771.551) | (1.573.375) | |
| Closing | (34.635.873) | (29.291.928) | |
| Net book value | 20.864.544 | 15.189.708 |
Remaining average useful life of intangible assets as of 31 March 2024 is 1,77 years (31 December 2023: 1,89 years).
| 31 March 2024 | Field Rental | Building | Aircraft | Other | Total |
|---|---|---|---|---|---|
| Cost: | |||||
| Opening | 14.570.782 | 7.785.814 | 4.552.812.457 | 311.363 | 4.575.480.416 |
| Additions | - | - | 96.983.615 | - | 96.983.615 |
| Disposals (*) | - | - | (270.012.555) | - | (270.012.555) |
| Closing | 14.570.782 | 7.785.814 | 4.379.783.517 | 311.363 | 4.402.451.476 |
| Accumulated depreciation: | |||||
| Opening | (11.292.007) | (4.952.114) | (1.074.263.186) | (311.363) | (1.090.818.670) |
| Depreciation for the period | 111.363 | (1.194.043) | (70.355.950) | - | (71.438.630) |
| Disposals (*) | - | - | 200.448.087 | - | 200.448.087 |
| Closing | (11.180.644) | (6.146.157) | (944.171.049) | (311.363) | (961.809.213) |
| Net book value | 3.390.138 | 1.639.657 | 3.435.612.468 | - | 3.440.642.263 |
(*) Aircrafts sold are shown as disposals, and aircraft whose lease obligations have ended are classified as transfers to tangible fixed assets.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| 31 March 2023 | Field Rental | Building | Aircraft | Other | Total |
|---|---|---|---|---|---|
| Cost: | |||||
| Opening | 14.241.033 | 7.447.021 | 4.161.751.825 | 311.363 | 4.183.751.242 |
| Additions | - | - | 188.075.645 | - | 188.075.645 |
| Disposals | - | - | (45.151.738) | - | (45.151.738) |
| Closing | 14.241.033 | 7.447.021 | 4.304.675.732 | 311.363 | 4.326.675.149 |
| Accumulated depreciation: | |||||
| Opening | (8.212.994) | (3.758.071) | (1.224.298.994) | (311.363) | (1.236.581.422) |
| Depreciation for the period | (879.384) | (264.600) | (66.179.581) | - | (67.323.565) |
| Disposals | - | - | 45.151.738 | - | 45.151.738 |
| Closing | (9.092.378) | (4.022.671) | (1.245.326.837) | (311.363) | (1.258.753.249) |
| Net book value | 5.148.655 | 3.424.350 | 3.059.348.895 | - | 3.067.921.900 |
The Group is party to various lawsuits and claims that have been filed against it, the total claims constituted by which, excluding reserved rights for claiming excess amounts, risk of litigation and interest, is EUR 4.557.893 as of 31 March 2024 (31 December 2023: EUR 4.249.941). These lawsuits and fines have been evaluated by the Group's management and a litigation provision of EUR 1.076.735 (31 December 2023: EUR 1.020.572) has been provided against claims for which management believes it is probable it will be required to make a payment. These lawsuits consist of guest complaints and claims by the Group's former employees, besides a limited number of commercial claims.
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 judgement commission has objected this verdict and EUR 51.165 (equivalent of TL 1.780.660,72) tax assessment has been declared to the Company. Against the assessment, the Company filed a tax lawsuit on September 6, 2021, the counterparty's petition was received on October 25, 2021 and the petition was answered on November 23, 2021.
The 7th Tax Court of Istanbul decided to accept the Company's case and rejected 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 the Company on September 28, 2022, and it was 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 31 December 2023. The Company has not recorded any provision in the financial statements in line with the opinions received from its lawyers regarding the aforementioned case.
(Amounts are expressed full Euros (EUR) 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 EUR 765.689, EUR 988.985 and EUR 475.031, respectively. All three lawsuits act on same claims and the airports no. 5/2013 whereby the plaintiff, as the operator of the Ercan Airport under North Cyprus Airports Services and Charges Law, claims EUR 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 EUR 1.679.114,2. 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 contingency has been set aside for these lawsuits.
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Commitments to purchase aircraft | 10.235.176.962 | 10.108.778.049 |
| 10.235.176.962 | 10.108.778.049 |
As of 31 March 2024, the Group holds firm orders for 67 aircraft. In accordance with agreement the expected deliveries are 15 aircraft in 2024, 11 aircraft in 2025, 8 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 EUR 280.285.294 (31 December 2022: EUR 273.570.133). Of this amount, EUR 228.951.248 is reclassified as short-term, and EUR 51.334.046 is reclassified as long-term prepayments (31 December 2022: EUR 216.118.250 is reclassified as short-term, EUR 57.451.883 is reclassified as long-term prepayments).
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| 31 March 2024 | EUR TOTAL | USD | EUR | TL | Other |
|---|---|---|---|---|---|
| A. Total amounts of CPM given on behalf of its own legal entity | |||||
| -Collateral | 34.636.661 | 17.534.605 | 12.271.404 | 97.112.641 | 3.308.344 |
| -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 | - | - | - | - | - |
| 34.636.661 | 17.534.605 | 12.271.404 | 97.112.641 | 3.308.344 |
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 Company constitute 0% of the Company's equity as of 31 March 2024.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The details of the CPMs given by the Group as of 31 December 2023 is as follows:
| 31 December 2023 | EUR TOTAL | USD | EUR | TL | Other |
|---|---|---|---|---|---|
| A. Total amounts of CPM given on behalf of its own legal entity | |||||
| -Collateral | 35.802.496 | 20.033.224 | 12.074.404 | 96.652.641 | 2.656.169 |
| -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 | - | - | - | - | - |
| 35.802.496 | 20.033.224 | 12.074.404 | 96.652.641 | 2.656.169 |
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 Company constitute 0% of the Company's equity as of 31 December 2023.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The details of expenses by nature for the years periods 31 March 2024 and 31 March 2023 are as follows:
| 1 January- | 1 January | ||
|---|---|---|---|
| 31 March 2024 | 31 March 2023 | ||
| Jet fuel expenses | 199.923.732 | 162.770.439 | |
| Depreciation and amortisation expenses | 82.543.630 | 72.946.148 | |
| Personnel expenses | 98.412.643 | 65.803.341 | |
| Handling and station fees | 44.662.225 | 35.100.661 | |
| Navigation expenses | 36.550.948 | 27.916.796 | |
| Maintenance expenses | 24.319.811 | 18.830.193 | |
| Landing expenses | 21.266.461 | 16.039.760 | |
| Commission expenses | 4.860.028 | 5.089.983 | |
| Advertising expenses | 3.699.576 | 2.404.717 | |
| Passenger service and catering expenses | 7.674.721 | 5.359.532 | |
| Operating lease expenses (*) | 1.063.180 | 3.658.476 | |
| Other expenses | 38.278.699 | 32.682.831 | |
| 563.255.654 | 448.602.877 |
(*) Consists of short-term operating lease expenses.
The Company's shareholding structure as of 31 March 2024 and 31 December 2023 are as follows:
| 31 March 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Hissedarlar: | (%) | EUR | (%) | EUR |
| Esas Holding | 56,65 | 34.302.427 | 56,65 | 34.302.427 |
| Halka Açık Kısım | 41,53 | 25.142.571 | 41,53 | 25.142.571 |
| Emine Kamışlı | 0,61 | 366.379 | 0,61 | 366.379 |
| Ali İsmail Sabancı |
0,61 | 366.379 | 0,61 | 366.379 |
| Kazım Köseoğlu | 0,30 | 183.189 | 0,30 | 183.189 |
| Can Köseoğlu | 0,30 | 183.189 | 0,30 | 183.189 |
| EUR historic capital | 100,00 | 60.544.134 | 100,00 | 60.544.134 |
The Company's share capital consists of 102.299.707 shares of par value TL 1 each (31 December 2023: 102.299.707 shares). All issued shares are fully paid in cash.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The details of revenue and cost of sales for the periods ended 31 March 2024 and 31 March 2023 are as follows:
| 1 January- | 1 January 31 March 2023 |
|
|---|---|---|
| 31 March 2024 | ||
| Scheduled flight and service revenue | 512.357.890 | 436.401.780 |
| International flight revenue | 246.576.186 | 223.302.449 |
| Domestic flight revenue | 67.865.413 | 56.662.768 |
| Service revenue | 197.916.291 | 156.436.563 |
| Charter flight and service revenue | 4.057.588 | 3.627.739 |
| Charter flight revenue | 4.057.588 | 3.627.739 |
| Other revenue | 2.306.748 | 2.373.021 |
| 518.722.226 | 442.402.540 |
The Group's revenue is disaggregated into revenue from scheduled flights, revenue from chartered flights, and other revenues in accordance with the IFRS 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 them as additional information due to their frequent disclosure to investors and continuous review by the authorities empowered to make decisions regarding operations.
Geographical details of revenue from the scheduled flights are as follows:
| 1 January- | 1 January 31 March 2023 |
|
|---|---|---|
| 31 March 2024 | ||
| Europe | 162.186.289 | 147.393.723 |
| Domestic | 67.865.413 | 56.662.768 |
| Other | 84.389.897 | 75.908.726 |
| 314.441.599 | 279.965.217 |
| 1 January- | 1 January 31 March 2023 |
|
|---|---|---|
| 31 March 2024 | ||
| Jet fuel expenses | 199.923.732 | 162.770.439 |
| Depreciation and amortisation expenses | 79.074.682 | 69.856.054 |
| Personnel expenses | 89.039.467 | 59.958.388 |
| Handling and station fees | 44.662.225 | 35.100.661 |
| Navigation expenses | 36.550.948 | 27.916.796 |
| Maintenance expenses | 24.319.811 | 18.831.661 |
| Landing expenses | 21.266.461 | 16.039.760 |
| Passenger service and catering expenses | 7.674.721 | 5.359.532 |
| Insurance expenses | 4.767.597 | 4.834.414 |
| Operating lease expenses | 1.063.180 | 3.658.476 |
| Other expenses | 23.740.134 | 18.954.826 |
| 532.082.958 | 423.281.007 |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| 1 January- 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Selling and marketing expenses | 13.562.378 | 10.637.277 |
| General administrative expenses | 17.610.318 | 14.684.593 |
| 31.172.696 | 25.321.870 |
The details of general administrative expenses and selling and marketing expenses for the periods ended 31 March 2024 and 31 March 2023 are as follows (there are no research & development expenses in the periods ended in respective dates):
| 1 January- | 1 January 31 March 2023 |
|
|---|---|---|
| 31 March 2024 | ||
| Personnel expenses | 7.432.410 | 5.122.935 |
| Depreciation and amortisation expenses | 2.775.158 | 2.472.076 |
| IT expenses | 4.276.552 | 2.978.802 |
| Consultancy expenses | 798.342 | 486.139 |
| Communication expenses | 381.446 | 365.389 |
| Legal and notary expenses | 420.823 | 483.428 |
| Office utility expenses | 532.256 | 274.726 |
| Travel expenses | 457.001 | 181.037 |
| Training expenses | 35.868 | 49.045 |
| Other expenses | 500.462 | 2.271.016 |
| 17.610.318 | 14.684.593 |
| 1 January- 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Commission expenses | 4.860.028 | 5.089.983 |
| Advertising expenses | 3.699.576 | 2.404.717 |
| Call center expenses | 1.671.419 | 997.153 |
| Personnel expenses | 1.940.766 | 1.264.170 |
| Depreciation and amortisation expenses | 693.790 | 618.019 |
| Other expenses | 696.799 | 263.235 |
| 13.562.378 | 10.637.277 |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The details of other operating income and expenses for the periods ended 31 March 2024 and 31 March 2023 are as follows:
| 1 January- 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Foreign exchange gain from operating activities | 9.375.562 | 1.442.292 |
| Reversal of trade receivable impairment | - | 334.646 |
| 9.375.562 | 1.776.938 |
| 1 January- 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Penalty expense | 141.433 | 86.272 |
| Cash and cash equivalents allowance expense | 150.130 | 26.754 |
| Trade receivables allowance expense | 222.663 | - |
| Doubtful receivable allowance expense | 439.073 | 217.048 |
| Donations (*) | - | 396.814 |
| Other | 734.585 | 1.145.315 |
| 1.687.884 | 1.872.203 |
(*) 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 31 March 2024 and 31 March 2023 are as follows:
| 1 January- 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Interest income from eurobond | 7.981.655 | 4.091.855 |
| Interest income from currency protected instruments | 5.463.736 | 2.596.024 |
| Incomes arising from aircraft sale | 7.712.959 | - |
| Gain from eurobond sales (*) | - | 86.691 |
| Income from sale of fixed assets | - | 337.119 |
| Other income | 84.305 | 28.246 |
| 21.242.655 | 7.139.935 |
(*) Represents gains arising from the sale of financial investments accounted for at amortized cost.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| 1 January- 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Financial investments allowance expense | 4.887.978 | - |
| 4.887.978 | - |
The details of financial income and expenses for the periods ended 31 March 2024 and 31 March 2023 are as follows:
| 1 January- 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Foreign exchange gain | - | 21.831.519 |
| Interest income | 10.445.243 | 3.730.447 |
| Gain on derivative contracts | 55.151 | - |
| 10.500.394 | 25.561.966 |
| 1 January- | 1 January | |
|---|---|---|
| 31 March 2024 | 31 March 2023 | |
| Interest expense on leases | 43.345.991 | 31.217.311 |
| Interest expense on bank loans | 5.674.907 | 3.433.389 |
| Interest expense on issued debt instruments | 7.934.524 | 7.784.685 |
| Foreign exchange loss | 31.518.340 | - |
| Other commission expenses | 8.677.197 | 7.179.030 |
| 97.150.959 | 49.614.415 |
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.
Number of total shares and calculation of earnings per share at 31 March 2024 and 31 March 2023 are as follows:
| 1 January- | 1 January | |
|---|---|---|
| 31 March 2024 | 31 March 2023 | |
| Net profit | (102.956.777) | (22.237.057) |
| Weighted average number of shares | ||
| issued in the year | 102.299.707 | 102.299.707 |
| Income per share | (1,01) | (0,22) |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| 31 March 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Asset | Liability | Asset | Liability | |
| Short term | 4.985.219 | - | 387.044 | 3.348.688 |
| Long term | 3.097.663 | - | - | 1.972.462 |
| 8.082.882 | - | 387.044 | 5.321.150 |
Explanations related to derivative instruments are disclosed in Note 24.
| Short term | 31 March 2024 | 31 December 2023 |
|---|---|---|
| Financial investments measured at amortized cost | 169.018.500 | 216.188.514 |
| Financial assets recognized at fair value through profit or loss | 30.390.692 | 62.663.933 |
| Time Deposit (*) | 143.743.407 | 291.545.322 |
| Less: Allowance for impairment under IFRS 9 | (1.686.322) | (1.395.410) |
| 341.466.277 | 569.002.359 |
(*) It refers to time deposits amounting to EUR 76.768.850 and exchange rate protected time deposits amounting to EUR 66.974.558, with maturities between three months and one year.
| Long term | 31 March 2024 | 31 December 2023 |
|---|---|---|
| Financial investments measured at amortized cost | 82.500.705 | 53.472.769 |
| Less: Allowance for impairment under IFRS 9 | (6.444.829) | (2.074.702) |
| 76.055.876 | 51.398.067 |
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Short term financial investments measured at amortized cost | 169.018.500 | 216.188.514 |
| Long term financial investments measured at amortized cost | 82.500.705 | 53.472.769 |
| 251.519.205 | 269.661.283 | |
| Company issuing security | 31 March 2024 | 31 December 2023 |
| T.C Hazine Müsteşarlığı | 94.961.722 | 182.556.595 |
| Türkiye İhracat Kredi Bankası | 44.654.670 | 5.388.000 |
| BNP Paribas | 28.529.676 | 27.132.769 |
| Türkiye İş Bankası | 23.812.860 | 22.884.017 |
| Citibank | 19.027.730 | 18.122.801 |
| Vakıfbank | 13.981.595 | 13.577.101 |
| Istanbul Metropolitan Municipality | 13.880.774 | - |
| Yapı ve Kredi Bankası | 7.029.190 | - |
| Garanti Bankası | 4.695.928 | - |
| Türk Ekonomi Bankası | 945.060 | - |
| 251.519.205 | 269.661.283 |
The Group's fixed income securities are accounted over their amortized costs using the effective interest rate. The securities in question are denominated in Euros, US Dollars and British Pounds and must pay fixed interest every year and every six months, respectively.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
Financial investments measured at amortized cost have an active market and market prices (according to dirty prices) are as follows:
| Company issuing security | 31 March 2024 | 31 December 2023 |
|---|---|---|
| T.C Hazine Müsteşarlığı | 93.821.820 | 185.729.154 |
| Türkiye İhracat Kredi Bankası | 44.337.716 | 5.497.566 |
| BNP Paribas | 27.830.402 | 27.112.074 |
| Türkiye İş Bankası | 23.856.778 | 23.241.014 |
| Citibank | 18.553.601 | 18.074.716 |
| Vakıfbank | 13.915.201 | 14.502.403 |
| Istanbul Metropolitan Municipality | 13.730.332 | - |
| Yapı ve Kredi Bankası | 6.933.023 | - |
| Garanti Bankası | 4.656.379 | - |
| Türk Ekonomi Bankası | 927.680 | - |
| 248.562.932 | 274.156.927 |
The coupon interest rates and final redemption dates of ongoing Euro, US Dollar and British Pounds financial investments as of the report date, measured at their amortized cost as of 31 March 2024 and 31 December 2023 are as follows:
| Company issuing security | ISIN Code | Coupon Interest Rate (%) | FX Type Carrying Amount | Call Date | |
|---|---|---|---|---|---|
| T.C Hazine Müsteşarlığı | US900123AW05 | 7,38 | USD | 54.985.965 | 5.02.2025 |
| Türkiye İş Bankası | XS1578203462 | 6,13 | USD | 23.812.860 25.04.2024 | |
| Türkiye İhracat Kredi Bankası | XS1814962582 | 6,13 | USD | 2.137.423 | 3.05.2024 |
| Türkiye İhracat Kredi Bankası | XS2395576437 | 9,38 | USD | 13.211.086 31.01.2026 | |
| BNP Paribas | XS2506542864 | 9,85 | USD | 28.529.676 27.06.2024 | |
| Citibank | XS2618428317 | 8,90 | USD | 19.027.730 20.06.2024 | |
| Türkiye İhracat Kredi Bankası | US900123CJ75 | 4,25 | USD | 4.534.544 14.04.2026 | |
| Türkiye İhracat Kredi Bankası | US900123DK30 | 7,63 | USD | 2.939.298 15.05.2034 | |
| Istanbul Metropolitan Municipality | XS2010029234 | 6,38 | USD | 13.880.774 | 9.12.2025 |
| Yapı ve Kredi Bankası | XS2445343689 | 9,25 | USD | 5.139.527 16.10.2028 | |
| T.C Hazine Müsteşarlığı | XS2523929474 | 9,76 | USD | 15.248.104 13.11.2025 | |
| Yapı ve Kredi Bankası | XS2741069996 | 9,25 | USD | 1.889.663 17.01.2034 | |
| Türk Ekonomi Bankası | XS2744911830 | 9,38 | USD | 945.060 17.01.2034 | |
| Garanti Bankası | XS2773062471 | 8,38 | USD | 4.695.928 28.02.2034 | |
| T.C Hazine Müsteşarlığı | XS2790222116 | 5,88 | EUR | 24.727.654 21.05.2030 | |
| Türkiye İhracat Kredi Bankası | XS2755539058 | 6,00 | EUR | 10.112.235 10.12.2024 | |
| Türkiye İhracat Kredi Bankası | XS2776676731 | 6,65 | GBP | 11.720.083 | 3.03.2025 |
| Vakıfbank | XS2767307973 | 7,25 | USD | 13.981.595 13.08.2025 | |
| 31 March 2024 | 251.519.205 | ||||
| Company issuing security | ISIN Code | Coupon Interest Rate (%) | FX Type | Carrying Amount Call Date | |
| T.C Hazine Müsteşarlığı | US900123CF53 | 5,75 | USD | 86.548.599 22.03.2024 | |
| T.C Hazine Müsteşarlığı | US900123AW05 | 7,38 | USD | 54.275.054 | 5.02.2025 |
| Türkiye İş Bankası | XS1578203462 | 6,13 | USD | 22.884.017 25.04.2024 | |
| Türkiye İhracat Kredi Bankası | XS1814962582 | 6,13 | USD | 2.045.678 | 3.05.2024 |
| T.C Hazine Müsteşarlığı | XS1917720911 | 8,25 | USD | 41.732.942 24.01.2024 | |
| Vakıfbank | XS1970705528 | 8,13 | USD | 13.577.101 27.03.2024 | |
| Citibank | XS2618428317 | 8,90 | USD | 18.122.801 20.06.2024 | |
| BNP Paribas | XS2506542864 | 9,85 | USD | 27.132.769 27.06.2024 | |
| Türkiye İhracat Kredi Bankası | XS2395576437 | 9,38 | USD | 3.342.322 31.01.2026 | |
| 31 December 2023 | 269.661.283 |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The coupon interest rates and call dates of the financial investments in US Dollars that are measured by their fair value and continues as of the reporting date are as follows.
| Company issuing security | ISIN Code | Coupon Interest Rate (%) |
FX Type | Asset Value | Call Date |
|---|---|---|---|---|---|
| Türkiye İhracat Kredi Bankası |
XS2523929474 | 9,76 | USD | 17.291.355 | 13.11.2025 |
| Istanbul Metropolitan Municipality Yapı ve Kredi Bankası |
XS2730249997 XS2445343689 |
10,50 9,25 |
USD USD |
5.114.718 5.104.821 |
6.12.2028 16.10.2028 |
| Türkiye İhracat Kredi Bankası Türkiye İhracat Kredi Bankası |
XS2692231975 XS2395576437 |
9,00 9,38 |
USD USD |
1.643.761 1.236.037 |
28.01.2027 31.01.2026 |
| 31 March 2024 | 30.390.692 | ||||
| Company issuing security | ISIN Code | Coupon Interest Rate (%) |
FX Type | Asset Value | Call Date |
| Türkiye İhracat Kredi Bankası |
XS1917720911 | 8,25 | USD | 9.030.805 | 24.01.2024 |
| Türkiye İhracat Kredi Bankası |
XS2692231975 | 9,00 | USD | 1.567.559 | 28.01.2027 |
| Istanbul Metropolitan Municipality | XS2730249997 | 10,50 | USD | 4.838.376 | 6.12.2028 |
| T.C Hazine Müsteşarlığı | US900123CF53 | 5,75 | USD | 24.449.350 | 22.03.2024 |
| Yapı ve Kredi Bankası | XS2445343689 | 9,25 | USD | 4.872.966 | 16.10.2028 |
| Türkiye İhracat Kredi Bankası |
XS2395576437 | 9,38 | USD | 1.234.018 | 31.01.2026 |
| Türkiye İhracat Kredi Bankası |
XS2523929474 | 9,76 | USD | 16.670.859 | 13.11.2025 |
The fair value difference is related to the bonds contained in financial assets reflected to other comprehensive income. The securities in question are denominated in US Dollars and must pay fixed interest every year and every six months, respectively.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The details of financial liabilities as of 31 March 2024 and 31 December 2023 are as follows:
| Short term financial liabilities | 31 March 2024 | 31 December 2023 |
|---|---|---|
| Short term bank borrowings | 274.008.542 | 164.358.114 |
| 274.008.542 | 164.358.114 | |
| Short term portion of long term financial liabilities | 31 March 2024 | 31 December 2023 |
| Short term portion of long term bank borrowings | 29.357.511 | 31.048.114 |
| Principal and interest of bonds issued | 31.242.087 | 29.732.858 |
| Discount and commissions of bonds issued | (1.108.165) | (1.079.562) |
| Lease liabilities | 345.629.677 | 347.704.239 |
| Short term portion of long term | ||
| operating lease obligations | 48.451.315 | 42.133.438 |
| Short term portion of long term | ||
| financial lease obligations | 297.178.362 | 305.570.801 |
| 405.121.110 | 407.405.649 | |
| Long term financial liabilities | 31 March 2024 | 31 December 2023 |
| Long term bank borrowings | 37.205.699 | 64.658.631 |
| Issued debt instruments (*) | 330.307.005 | 314.750.653 |
| Discount and commissions of bonds issued | (1.199.247) | (1.437.444) |
| Lease liabilities | 2.702.670.522 | 2.719.405.614 |
| Long term operating lease obligations | 161.162.574 | 146.880.324 |
| Long term financial lease obligations | 2.541.507.948 | 2.572.525.290 |
| 3.068.983.979 | 3.097.377.454 |
(*) The Group issued bonds to qualified investors abroad on 29 April 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.
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 31 March 2024, the Group complied with all covenants.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The effective interest rates, original currency and EUR equivalents of the short and long term bank borrowings as of 31 March 2024 and 31 December 2023 are as follows :
| Weighted average | Original | EUR | ||
|---|---|---|---|---|
| 31 March 2024 | interest rate (%) | Currency | amount | equivalent |
| Short term bank borrowings | 6,27 | Euro | 274.008.542 | 274.008.542 |
| 274.008.542 | ||||
| Weighted average | Original | EUR | ||
| 31 December 2023 | interest rate (%) | Currency | amount | equivalent |
| Short term bank borrowings | 7,04 | Euro | 164.358.114 | 164.358.114 |
| 164.358.114 | ||||
| Weighted average | Original | EUR | ||
| 31 March 2024 | interest rate (%) | Currency | amount | equivalent |
| Short term portion of long term bank borrowings | 5,34 | Euro | 29.357.511 | 29.357.511 |
| 29.357.511 | ||||
| Weighted average | Original | EUR | ||
| 31 December 2023 | interest rate (%) | Currency | amount | equivalent |
| Short term portion of long term bank borrowings | 5,42 | Euro | 31.048.114 | 31.048.114 |
| 31.048.114 | ||||
| Weighted average | Original | EUR | ||
| 31 March 2024 | interest rate (%) | Currency | amount | equivalent |
| Long term bank borrowings | 4,82 | Euro | 37.205.699 | 37.205.699 |
| 37.205.699 | ||||
| Weighted average | Original | EUR | ||
| 31 December 2023 | interest rate (%) | Currency | amount | equivalent |
| Long term bank borrowings | 5,57 | TL | 64.658.631 | 64.658.631 |
| 64.658.631 |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The details of financial and operating lease liabilities as of 31 March 2024 and 31 December 2023 are as follows:
| 31 March 2024 | 31 December 2023 |
|---|---|
| 488.392.943 | 479.304.856 |
| 1.656.950.819 | 1.588.049.567 |
| 1.518.671.146 | 1.589.358.777 |
| 3.664.014.908 | 3.656.713.200 |
| (615.714.709) | (589.603.347) |
| 3.048.300.199 | 3.067.109.853 |
Present value of minimum lease payments of financial lease liabilities are as follows;
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Less than 1 year | 345.629.677 | 347.704.239 |
| Between 1 - 5 years | 1.346.069.760 | 1.303.602.221 |
| Over 5 years | 1.356.600.762 | 1.415.803.393 |
| 3.048.300.199 | 3.067.109.853 |
The Group acquire certain of its handling equipment and aircraft through lease arrangements. The average lease term is 5,96 years. For the period ended 31 March 2024, the floating interest rate applicable to Eurodenominated lease obligations, amounting to EUR 2.079.129.696, is 3,90% (31 December 2023: 3,92%) and the floating rate applicable to US Dollar-denominated lease obligations, amounting to EUR 371.715.555, is 6,74% (31 December 2023: 6,71%).
The Group's activities expose it to a variety of 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 it 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 its exposure to foreign currency, fuel price and interest rate risk.
The Group has significant transactions in non-Euro currencies including, but not limited to, Turkish Lira revenues, non-Euro borrowings and US Dollar 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 full Euros (EUR) unless otherwise stated.)
The Group's foreign currency position of monetary and non-monetary assets/liabilities for the years ended 31 March 2024 and 31 December 2023 are as follows:
| 31 March 2024 | EUR Total | USD | TL | GBP | Other |
|---|---|---|---|---|---|
| 1. Trade receivables | 61.871.850 | 15.626.853 | 1.319.069.936 | 2.287.553 | 6.800.320 |
| 2a. Monetary financial assets | 836.949.109 | 641.551.092 | 6.010.024.758 | 34.644.371 | 28.622.541 |
| 2b. Non monetary financial assets | - | - | - | - | - |
| 3. Other | 6.755.396 | 6.260.536 | 24.097.300 | 189.475 | 33.815 |
| 4. CURRENT ASSETS | 905.576.355 | 663.438.481 | 7.353.191.994 | 37.121.399 | 35.456.676 |
| 5. Trade receivables | - | - | - | - | - |
| 6a. Monetary financial assets | 54.370.873 | 58.609.509 | - | - | - |
| 6b. Non monetary financial assets | - | - | - | - | - |
| 7. Other | 31.590.056 | 29.087.092 | 647.543 | 63.000 | 4.514.319 |
| 8. NON CURRENT ASSETS | 85.960.929 | 87.696.601 | 647.543 | 63.000 | 4.514.319 |
| 9. TOTAL ASSETS | 991.537.284 | 751.135.082 | 7.353.839.537 | 37.184.399 | 39.970.995 |
| 10. Trade payables | 98.841.411 | 34.670.961 | 2.022.451.165 | 293.655 | 8.222.143 |
| 11. Financial liabilities | 127.262.482 | 136.897.660 | 9.231.350 | - | - |
| 12a. Other liabilitites, monetary | 148.038.461 | 13.340.789 | 3.143.828.663 | 220.889 | 45.070.435 |
| 12b. Other liabilities, non monetary | - | - | - | - | - |
| 13. CURRENT LIABILITIES | 374.142.354 | 184.909.410 | 5.175.511.178 | 514.544 | 53.292.578 |
| 14. Trade payables | - | - | - | - | - |
| 15. Financial liabilities | 1.116.306.709 | 1.202.908.423 | 13.661.394 | - | - |
| 16a. Other lliabilities, monetary | 152.846.998 | 164.762.620 | - | - | - |
| 16b. Other liabilities, non monetary | - | - | - | - | - |
| 17. NON CURRENT LIABILITIES | 1.269.153.707 | 1.367.671.043 | 13.661.394 | - | - |
| 18. TOTAL LIABILITIES | 1.643.296.061 | 1.552.580.453 | 5.189.172.572 | 514.544 | 53.292.578 |
| 19. Net asset / (liability) position of Off-balance | |||||
| sheet derivatives (19a-19b) | - | - | - | - | - |
| 19.a Off-balance sheet foreign currency | |||||
| derivative assets | - | - | - | - | - |
| 19b. Off-balance sheet foreign currency | |||||
| derivative liabilities | - | - | - | - | - |
| 20. Net foreign currency asset/(liability) | |||||
| position | (651.758.777) | (801.445.371) | 2.164.666.965 | 36.669.855 | (13.321.583) |
| 21. Net foreign currency asset / (liability) | |||||
| position of monetary items (1+2a+3+5+6a+7-10-11-12a-14-15-16a) |
(651.758.777) | (801.445.371) | 2.164.666.965 | 36.669.855 | (13.321.583) |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| 31 December 2023 | EUR Total | USD | TL | GBP | Other |
|---|---|---|---|---|---|
| 1. Trade receivables | 34.740.625 | 7.469.645 | 684.110.649 | 1.460.848 | 5.309.080 |
| 2a. Monetary financial assets | 754.084.586 | 668.634.650 | 3.870.699.898 | 9.097.013 | 20.530.787 |
| 2b. Non monetary financial assets | - | - | - | - | - |
| 3. Other | 3.125.601 | 6.084.964 | (85.591.461) | 189.475 | 36.219 |
| 4. CURRENT ASSETS | 791.950.812 | 682.189.259 | 4.469.219.086 | 10.747.336 | 25.876.087 |
| 5. Trade receivables | - | - | - | - | - |
| 6a. Monetary financial assets | 51.398.067 | 56.872.890 | - | - | - |
| 6b. Non monetary financial assets | - | - | - | - | - |
| 7. Other | 27.578.135 | 25.840.671 | 631.013 | 1.000 | 4.204.474 |
| 8. NON CURRENT ASSETS | 78.976.202 | 82.713.561 | 631.013 | 1.000 | 4.204.474 |
| 9. TOTAL ASSETS | 870.927.014 | 764.902.820 | 4.469.850.099 | 10.748.336 | 30.080.561 |
| 10. Trade payables | 116.870.377 | 70.554.166 | 1.288.319.658 | 789.344 | 12.650.076 |
| 11. Financial liabilities | 125.371.459 | 138.430.478 | 8.693.284 | - | - |
| 12a. Other liabilitites, monetary | 93.780.943 | 21.299.965 | 2.365.708.819 | 133.847 | 1.751.653 |
| 12b. Other liabilities, non monetary | - | - | - | - | - |
| 13. CURRENT LIABILITIES | 336.022.779 | 230.284.609 | 3.662.721.761 | 923.191 | 14.401.728 |
| 14. Trade payables | - | - | - | - | - |
| 15. Financial liabilities | 1.100.169.275 | 1.216.807.510 | 16.181.095 | - | - |
| 16a. Other lliabilities, monetary | 136.186.703 | 150.693.047 | - | - | - |
| 16b. Other liabilities, non monetary | - | - | - | - | - |
| 17. NON CURRENT LIABILITIES | 1.236.355.978 | 1.367.500.557 | 16.181.095 | - | - |
| 18. TOTAL LIABILITIES | 1.572.378.757 | 1.597.785.166 | 3.678.902.856 | 923.191 | 14.401.728 |
| 19. Net asset / (liability) position of Off-balance | |||||
| sheet derivatives (19a-19b) | (1.338.260) | 9.584.500 | - | (8.700.000) | - |
| 19.a Off-balance sheet foreign currency | |||||
| derivative assets | 8.661.856 | 9.584.500 | - | - | - |
| 19b. Off-balance sheet foreign currency | |||||
| derivative liabilities | 10.000.116 | - | - | 8.700.000 | - |
| 20. Net foreign currency asset/(liability) | |||||
| position | (701.451.743) | (832.882.346) | 790.947.243 | 9.825.145 | 15.678.833 |
| 21. Net foreign currency asset / (liability) | |||||
| position of monetary items | |||||
| (1+2a+3+5+6a+7-10-11-12a-14-15-16a) | (701.451.743) | (832.882.346) | 790.947.243 | 9.825.145 | 15.678.833 |
(Amounts are expressed full Euros (EUR) 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 31 March 2024 and 31 December 2023 are as follows:
| 31 March 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) | (74.348.490) | 74.348.490 | - | - | |
| Part of hedged from USD risk | - | - | - | - | |
| USD net effect | (74.348.490) | 74.348.490 | - | - | |
| Effect of 10% change in TL rate | |||||
| TL net asset / (liability) | 6.219.896 | (6.219.896) | 158.021.031 | (158.021.031) | |
| Part of hedged from TL risk | - | - | - | - | |
| TL net effect | 6.219.896 | (6.219.896) | 158.021.031 | (158.021.031) | |
| Effect of 10% change in GBP rate | |||||
| GBP net asset / liability | 4.284.874 | (4.284.874) | - | - | |
| Part of hedged from GBP risk | - | - | - | - | |
| GBP net effect | 4.284.874 | (4.284.874) | - | - | |
| 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) | (75.270.560) | 75.270.560 | - | - | |
| Part of hedged from USD risk | 866.186 | (866.186) | - | - | |
| USD net effect | (74.404.374) | 74.404.374 | - | - | |
| Effect of 10% change in TL rate | |||||
| TL net asset / (liability) | 2.428.163 | (2.428.163) | 168.230.343 | (168.230.343) | |
| Part of hedged from TL risk TL net effect |
- 2.428.163 |
- (2.428.163) |
- 168.230.343 |
- (168.230.343) |
|
| Effect of 10% change in GBP rate | |||||
| GBP net asset / liability | 1.129.340 | (1.129.340) | - | - | |
| Part of hedged from GBP risk GBP net effect |
(1.000.012) 129.328 |
1.000.012 (129.328) |
- - |
- - |
(Amounts are expressed full Euros (EUR) 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).
| 31 2024 March |
Derivative instruments |
|||||
|---|---|---|---|---|---|---|
| Financial assets |
which are recognized Derivative instruments at |
|||||
| and liabilities at |
fair value in |
which are recognized at |
||||
| amortized cost |
shareholders' equity |
fair value in profit/loss |
Carrying amount |
Note | ||
| Financial assets |
||||||
| Cash and cash equivalents |
813.387.991 | - | - | 813.387.991 | 27 | |
| Trade receivables |
83.581.352 | - | - | 83.581.352 | 6 | |
| - Other | 83.581.352 | - | - | 83.581.352 | 6 | |
| Other receivables |
64.070.806 | - | - | 64.070.806 | ||
| - Related party |
139.202 | - | - | 139.202 | 5 | |
| - Other | 63.931.604 | - | - | 63.931.604 | ||
| Financial investments |
392.306.341 | 30.390.692 | - | 417.522.153 | 22 | |
| Derivative financial assets |
- | 7.685.583 | 397.299 | 8.082.882 | 21 | |
| Financial liabilities |
||||||
| Bank borrowings |
340.571.751 | - | - | 340.571.751 | 22 | |
| Issued debt instruments |
355.246.432 | - | - | 359.241.681 | ||
| Trade payables |
216.343.884 | - | - | 216.343.884 | 6 | |
| - Related party |
827.905 | - | - | 827.905 | 5 | |
| - Other | 215.515.979 | - | - | 215.515.979 | ||
| Other payables |
13.139.258 | - | - | 13.139.258 | ||
| Derivative financial liabilities |
- | - | - | - | 21 |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| Derivative instruments |
||||||
|---|---|---|---|---|---|---|
| 31 December 2023 |
Financial assets |
which are recognized Derivative instruments at |
||||
| and liabilities at |
fair value in which are recognized at |
|||||
| amortized cost |
shareholders' equity |
fair in profit/loss value |
Carrying amount |
Note | ||
| Financial assets |
||||||
| Cash and cash equivalents |
493.596.374 | - | - | 493.596.374 | 27 | |
| Trade receivables |
51.234.258 | - | - | 51.234.258 | 6 | |
| - Other | 51.234.258 | - | - | 51.234.258 | 6 | |
| Other receivables |
60.278.019 | - | - | 60.278.019 | ||
| - Related party |
1.355 | - | - | 1.355 | 5 | |
| - Other | 60.276.664 | - | - | 60.276.664 | ||
| Financial investments |
568.370.078 | 62.663.933 | - | 620.400.426 | 22 | |
| Derivative financial assets |
- | - | 387.044 | 387.044 | 21 | |
| Financial liabilities |
||||||
| Bank borrowings |
260.064.859 | - | - | 260.064.859 | 22 | |
| Obligations under financial leases |
346.781.110 | - | - | 341.966.505 | ||
| Trade payables |
200.894.817 | - | - | 200.348.000 | 6 | |
| - Related party |
200.348.000 | - | - | 546.817 | 5 | |
| - Other | 546.817 | - | - | 199.801.183 | ||
| Other payables |
7.995.823 | - | - | 7.995.823 | ||
| Derivative financial liabilities |
- | 5.321.150 | - | 5.321.150 | 21 |
(Amounts are expressed full Euros (EUR) 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 |
|
|---|---|---|---|---|
| 31 March 2024 | 31 December 2023 | |||
| Fuel purchase option contracts |
7.685.583 | (5.321.150) | Level 2 | Discounted cash flow method |
| Currency forward contracts |
397.299 | 387.044 | Level 2 | Discounted cash flow method |
| Currency | Fuel purchase | |||
| forward | option | |||
| 31 March 2024 | contracts | contracts | Total | |
| Fair value: | ||||
| Opening | 387.044 | (5.321.150) | (4.934.106) | |
| Fair value increase | ||||
| Recognized in equity | 12.666.018 - |
12.666.018 | ||
| Recognized in profit or loss | 35.038 | - | 35.038 | |
| Closing | 422.082 | 7.344.868 | 7.766.950 | |
| Assets | 397.299 | 7.685.583 | 8.082.882 | |
| Liabilities | - - |
- | ||
| Total net assets and liabilities | 397.299 | 7.685.583 | 8.082.882 |
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
| Currency | Fuel purchase | ||
|---|---|---|---|
| forward | option | ||
| 31 December 2023 | contracts | contracts | Total |
| Fair value: | |||
| Opening | - | 10.849.159 | 10.849.159 |
| Fair value increase / (decrease) | |||
| Recognized in equity | - | (16.170.309) | (16.170.309) |
| Recognized in profit or loss | 387.044 | - | 387.044 |
| Closing | 387.044 | (5.321.150) | (4.934.106) |
| Assets | 387.044 | - | 387.044 |
| Liabilities | - | (5.321.150) | (5.321.150) |
| Total net assets and liabilities | 387.044 | (5.321.150) | (4.934.106) |
The Group has forward fuel purchase option contracts, which are subject to hedge accounting, at a rate of 48,7% and 21,4% 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 the balance sheet period, the contracts last until February 2026. The total nominal value of these contracts is USD 477,9 million, and the weighted average price is in the range of USD 69-84. The ineffective portion of the hedge is not material as of 31 March 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 EUR 583.476 (31 December 2023: EUR 9.251.380 derivative expenses are charged to finance expenses).
The Company filed an application to the Capital Markets Board of Türkiye on February 29, 2024 to increase issued share capital to TL 500.000.000 from TL 102.299.707, through conversion of funds available as part of the "Share Premiums on Capital Stock", within the TRY 500.000.000 authorized capital ceiling. On 2 May 2024, the Capital Markets Board of Türkiye approved the application and registration processes for other institutions are ongoing.
(Amounts are expressed full Euros (EUR) unless otherwise stated.)
The Group is subject to corporate tax applicable in Turkey. The corporate tax rate in Turkey 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 31 March 2024 and 31 March 2023 are presented below:
| 1 January- 31 March 2024 |
1 January 31 March 2023 |
|
|---|---|---|
| Tax income/(expense) | ||
| - Deferred tax income/(expense) | 125.669.472 | 9.602.754 |
| Total tax income/(expense) | 125.669.472 | 9.602.754 |
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 EUR 151.811.395 (31 December 2023: EUR 143.218.297) that the Group will benefit from in the foreseeable future as of 31 March 2024 is reflected in the condensed consolidated financial statements as a deferred tax asset. As a result of the recognition of the mentioned tax advantage as of 31 March 2024, deferred tax income amounting to EUR 8.593.098 has occurred in the consolidated profit or loss statement for the period 1 January - 31 March 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 condensed consolidated financial statements on long-term plans and evaluates the recoverability of deferred tax assets related to these investment incentives as of each balance sheet date. This evaluation is conducted based on business models that include estimations of taxable profits.
In the sensitivity analysis carried out as of 31 March 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 full Euros (EUR) unless otherwise stated.)
The details of cash and cash equivalents as of 31 March 2024 and 31 December 2023 are as follows:
| 31 March 2024 | 31 December 2023 | |
|---|---|---|
| Cash on hand | 163.590 | 108.911 |
| Cash at banks | 813.586.972 | 493.720.311 |
| - Demand deposits | 184.716.781 | 31.129.195 |
| - Time deposits | 628.870.191 | 462.591.116 |
| Less: Allowance for impairment under IFRS 9 | (362.571) | (232.848) |
| 813.387.991 | 493.596.374 |
The weighted average interest rates of time deposits are as presented below:
| Weighted average | ||
|---|---|---|
| Total | interest rates | 31 March 2024 |
| 292.151.706 | 4,69 % | USD deposits |
| 189.429.704 | 3,72 % | EUR deposits |
| 108.983.145 | 42,18 % | TL deposits |
| 38.305.636 | 0,51 % | GBP deposits |
628.870.191
| Weighted average | ||
|---|---|---|
| 31 December 2023 | interest rates | Total |
| USD deposits | 4,24 % | 320.596.080 |
| EUR deposits | 3,16 % | 74.138.251 |
| TL deposits | 40,80 % | 58.306.992 |
| GBP deposits | 0,26 % | 9.549.793 |
| 462.591.116 |
As of 31 March 2024 and 31 December 2023 time deposits maturities are less than 90 days.
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