TÜRK HAVA YOLLARI A.O.

Annual Report • May 22, 2024

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

Condensed Consolidated Interim Financial Statements As at and For The Three-Month Period Ended 31 March 2024

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Financial Position as at 31 March 2024

Condensed Consolidated Interim Statement of Financial Position as at 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
ASSETS	Notes	31 March 2024	31 December 2023
Non-Current Assets
Financial Investments	6	541	398
Other Receivables
-Third Parties	9	1,320	1,395
Investments Accounted for Using Equity Method	3	513	497
Investment Property		43	43
Property and Equipment	11	6,229	6,075
Right of Use Assets	11	17,056	16,928
Intangible Assets
- Other Intangible Assets	12	91	87
- Goodwill		27	27
Prepaid Expenses		1,412	1,294
Deferred Tax Asset	25	346	332
TOTAL NON-CURRENT ASSETS		27,578	27,076
Current Assets
Cash and Cash Equivalents	5	841	683
Financial Investments	6	4,825	5,344
Trade Receivables
-Related Parties	8	47	50
-Third Parties		943	806
Other Receivables
-Related Parties	8	9	9
-Third Parties	9	826	880
Derivative Financial Instruments	27	70	18
Inventories		454	418
Prepaid Expenses		382	237
Current Income Tax Assets	25	38	41
Other Current Assets		100	109
TOTAL CURRENT ASSETS		8,535	8,595
TOTAL ASSETS		36,113	35,671

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

31 March 2024 31 December 2023 LIABILITIES AND EQUITY Notes Equity Share Capital 18 1,597 1,597 Treasury Shares 18 (33) Items That Will Not Be Reclassified to Profit or Loss -Actuarial Losses on Retirement Pay Obligation 18 (269) Items That Are or May Be Reclassified to Profit or Loss -Foreign Currency Translation Differences 18 (227) -Fair Value Gains on Hedging Instruments 18 508 281 Entered into for Cash Flow Hedges 9 21 -Losses on Remeasuring FVOCI Restricted Profit Reserves 18 69 69 Previous Years Profit 14,118 8,097 Net Profit for the Period 226 6,021 15,998 15,558 Equity of the Parent 5 Non-Controlling Interests 4 TOTAL EQUITY 16,002 15,563 Non-Current Liabilities Long-Term Borrowings 7 144 472 Long-Term Lease Liabilities 7 and 13 9,919 10,052 Other Payables -Third Parties 37 25 Deferred Income 10 169 108 Long-Term Provisions -Provisions for Employee Termination Benefits 16 213 229 -Other Provisions 82 85 Deferred Tax Liability 25 68 50 TOTAL NON-CURRENT LIABILITIES 10,632 11,021 Current Liabilities Short-Term Borrowings 7 1,170 1,345 Short-Term Portion of Long-Term Borrowings 7 412 618 Short-Term Portion of Lease Liabilities 7 and 13 1,694 1,760 Trade Payables -Related Parties 8 264 285 -Third Parties 1,094 1,006 Payables Related to Employee Benefits 423 418 Other Payables -Related Parties 8 2 4 -Third Parties 191 238 Derivative Financial Instruments 27 29 101 Deferred Income 10 3,631 2,705 Current Tax Provision 25 36 39		(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
(33) (274) (221)
	Short-Term Provisions
-Provisions for Employee Benefits 14 85 50
-Other Provisions 14 7 6
Other Current Liabilities 441 512
TOTAL CURRENT LIABILITIES 9,479 9,087 TOTAL LIABILITIES AND EQUITY 36,113 35,671

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income For the Three-Month Period Ended 31 March 2024

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
		1 January -	1 January -
PROFIT OR LOSS	Notes	31 March 2024	31 March 2023
Revenue	19	4,769	4,353
Cost of Sales (-)	20	(4,245)	(3,705)
GROSS PROFIT		524	648
General Administrative Expenses (-)	21	(108)	(98)
Selling and Marketing Expenses (-) Other Operating Income	21 22	(444) 111	(416) 129
Other Operating Expenses (-)	22	(41)	(149)
OPERATING PROFIT BEFORE
INVESTMENT ACTIVITIES		42	114
Income from Investment Activities	23	310	151
Expenses for Investment Activities	23	(2)	(12)
Share of Investments' Profit / (Loss) Accounted
for Using The Equity Method	3	2	(12)
OPERATING PROFIT Financial Income	24	352 195	241 357
Financial Expenses (-)	24	(379)	(322)
PROFIT BEFORE TAX		168	276
Tax Expense		58	(43)
Current Tax Income / (Expense)	25	-	(4)
Deferred Tax Income / (Expense)	25	58	(39)
NET PROFIT FOR THE PERIOD		226	233
OTHER COMPREHENSIVE INCOME
Items That May Be Reclassified Subsequently To
Profit or Loss		209	65
Currency Translation Adjustment		(6)	(9)
(Losses) / Gains on Investments Remeasured FVOCI		(12)	5
Fair Value Gains on Hedging Instruments
Entered into for Cash Flow Hedges		268	100
Fair Value Gains / (Losses) Hedging Instruments of
Investment Accounted by Using the Equity Method
Entered into for Cash Flow Hedges		16	(12)
Related Tax of Other Comprehensive Income		(57)	(19)
Items That Will Not Be Reclassified Subsequently
To Profit or Loss		5	(2)
Actuarial Gains / (Losses) on Retirement Pay
Obligation		6	(3)
Related Tax of Other Comprehensive Income		(1)	1
OTHER COMPREHENSIVE INCOME
FOR THE PERIOD		214	63
TOTAL COMPREHENSIVE INCOME		440	296
FOR THE PERIOD
Basic Earnings Per Share (Full US Cents)	26	0.16	0.17
Diluted Earnings Per Share (Full US Cents)	26	0.16	0.17

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

Condensed Consolidated Interim Statement of Changes in Equity

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Changes in Equity For the Three-Month Period Ended 31 March 2024
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
			Items That Will Not
			Be Reclassified
			Subsequently To		Items That May Be Reclassified Subsequently
			Profit or Loss		To Profit or Loss				Retained Earnings
					Fair Value Gains
					on Hedging
				Foreign	Instruments					Equity
			Actuarial Losses	Currency	Entered Into For	Gains on	Restricted	Previous	Net Profit	Holders	Non
	Share	Treasury	Retirement Pay	Translation	Cash Flow	Remeasuring	Profit	Years	for The	of the	controlling	Total
	Capital	Shares	Obligation	Differences	Hedges	FVOCI	Reserves	Profit	Period	Parent	Interests	Equity
As of 1 January 2024	1,597	(33)	(274)	(221)	281	21	69	8,097	6,021	15,558	5	15,563
Transfers	-	-	-	-	-	-	-	6,021	(6,021)	-	-	-
Total comprehensive income	-	-	5	(6)	227	(12)	-	-	226	440	-	440
Transactions with non
controlling interests As of 31 March 2024	- 1,597	- (33)	- (269)	- (227)	- 508	- 9	- 69	- 14,118	- 226	- 15,998	(1) 4	(1) 16,002
			Items That Will Not Be Reclassified
			Subsequently To		Items That May Be Reclassified Subsequently
			Profit or Loss		To Profit or Loss				Retained Earnings
					Fair Value Gains
					on Hedging
				Foreign	Instruments					Equity
	Share	Treasury	Actuarial Losses Retirement Pay	Currency Translation	Entered Into For Cash Flow	Losses on Remeasuring	Restricted Profit	Previous Years	Net Profit for The	Holders of the	Non controlling	Total
	Capital	Shares	Obligation	Differences	Hedges	FVOCI	Reserves	Profit	Period	Parent	Interests	Equity
As of 1 January 2023	1,597	-	(228)	(294)	515	(14)	36	5,405	2,725	9,742	-	9,742
Transfers	-	-	-	-	-	-	16	2,709	(2,725)	-	-	-
Total comprehensive income	-	-	(2)	(9)	70	4	-	-	233	296	-	296
Increase through treasury share
transactions	-	(16)	-	-	-	-	-	-	-	(16)	-	(16)
Transactions with non
controlling interests	-	-	-	-	-	-	-	-	-	-	3	3
As of 31 March 2023	1,597	(16)	(230)	(303)	585	(10)	52	8,114	233	10,022	3	10,025

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

Condensed Consolidated Interim Statement of Cash Flows

Condensed Consolidated Interim Statement of Cash Flows For the Three-Month Period Ended 31 March 2024	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
	Notes	31 March 2024	31 March 2023
Net Profit for the Period Adjustments to Reconcile Profit		226	233
Adjustments for Depreciation and Amortisation Expense	11 and 12	531	497
Adjustments for Provisions Related to Employee Benefits	14 and 16	48	22
Adjustments for Provisions for Other Accruals	14	2	1
Adjustments for Reversal of Probable Risks Adjustments for Interest Income	23 and 24	(1) (304)	5 (154)
Adjustments for Interest Expense	16 and 24	148	122
Adjustments for Unrealised Foreign Exchange (Gains) / Losses		(329)	464
Adjustments for Fair Value Losses / (Gains) on Derivative
Financial Instruments Adjustments for Fair Value Losses	24	61 159	(180) -
Adjustments for Undistributed Losses of Associates	3	(2)	12
Adjustments for Tax (Income) / Expense	25	(61)	43
Adjustments for Gains Arised from Sale of Tangible Assets	23	(1)	(11)
Adjustments for Losses Arised from Sale of Other Non-Current Assets Operating Profit Before Changes in Working Capital	11	8 485	13 1,067
Decrease / (Increase) in Trade Receivables from Related Parties	8	3	(4)
(Increase) / Decrease in Trade Receivables from Third Parties		(138)	90
Decrease / (Increase) in Other Receivables from Third Parties	9	93	(81)
Adjustments for Increase in Inventories Adjustments for Increase in Prepaid Expenses		(28) (263)	(9) (197)
Decrease in Trade Payables to Related Parties	8	(21)	(23)
Increase in Trade Payables to Third Parties		88	49
Adjustments for Increase in Payables Due to
Employee Benefits		5	27
Decrease in Other Payables to Related Parties (Decrease) / Increase in Other Payables to Third Parties	8	(2) (35)	(7) 37
Increase in Deferred Income	10	914	565
Decrease / (Increase) in Other Assets		9	(18)
Cash Flows From Operations		1,110	1,496
Payments for Provisions Related with Employee Benefits Income Taxes (Paid) / Received	16 25	(5) (3)	(4) 12
Net Cash From Operating Activities		1,102	1,504
CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES
Proceeds From Sales of Property, Plant and Equipment and Intangible Assets		2	20
Payments For Purchasing of Property, Plant and Equipment and Intangible Assets	11 and 12	(253)	(457)
Proceeds / (Payments) For Purchasing of Other Financial Assets	6	217	(2,149)
Other Cash Advances and Loans	9	(20)	(36)
Dividends Received	3	16	-
Interest Received	23	213	74
Net Cash Flows Used In Investing Activities CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES		175	(2,548)
Payments to Acquire Entity's Shares		-	(16)
Proceeds From Loans	7	1,044	968
Repayments of Loans Payments of Lease Liabilities	7 7	(1,680) (438)	(923) (428)
Interest Paid		(136)	(95)
Interest Received	24	63	79
Other Cash Outflows		-	3
Net Cash Used in Financing Activities Net Change in Cash and Cash Equivalents		(1,147)	(412)
CASH AND CASH EQUIVALENTS		130	(1,456)
AT THE BEGINNING OF THE PERIOD		673	4,066
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD			2,610
	5	803

1. GROUP ORGANIZATION AND ITS OPERATIONS

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
GROUP ORGANIZATION AND ITS OPERATIONS
Türk Hava Yolları Anonim Ortaklığı (the "Company" or "THY") was incorporated in Türkiye in 1933. As of 31 March 2024, and 2023, the shareholders and their respective shareholdings in the Company are as follows:
	31 March 2024	31 December 2023
Türkiye Wealth Fund Republic of Türkiye Ministry of Treasury and	49.12 %	49.12 %
Finance Privatization Administration	-	-
Other (publicly held and tresuary share)	50.88 %	50.88 %

The number of employees working for the Group as of 31 March 2024 is 57,991 (31 December 2023: 55,884). The average number of employees working for the Group for the period ended 31 March 2024 and 2023 are 57,390 and 51,753 respectively. The Group is registered in İstanbul, Türkiye and its registered head office address is as follows:

Türk Hava Yolları A.O. Genel Yönetim Binası, Yeşilköy Mahallesi, Havaalanı Caddesi No: 3/1 34149 Bakırköy İSTANBUL.

The Company's shares have been traded on Borsa İstanbul ("BIST") since 1990. The Company and its subsidiaries will be referred to as "Group".

1. GROUP ORGANIZATION AND ITS OPERATIONS (cont'd)

Subsidiaries and Joint Ventures

As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) GROUP ORGANIZATION AND ITS OPERATIONS (cont'd)	Notes to the Condensed Consolidated Interim Financial Statements
Subsidiaries and Joint Ventures
The table below sets out the consolidated subsidiaries of the Group as of 31 March 2024 and 2023:
Name of the Company THY Teknik A.Ş.	Principal Activity Aircraft Maintenance	31 March 2024	Ownership Rate 31 December 2023	Country of Registration
(Turkish Technic)	Services	100%	100%	Türkiye
THY Uçuş Eğitim ve Havalimanı İşletme A.Ş. (TAFA)	Training & Airport Operations	100%	100%	Türkiye
THY Uluslararası Yatırım ve Taşımacılık A.Ş.	Cargo and Courier Transportation	100%	100%	Türkiye
THY Teknoloji ve Bilişim A.Ş. (Turkish Technology)	Information Technologies and Consulting	100%	100%	Türkiye
THY Hava Kargo Taşımacılığı A.Ş. (Widect)	Cargo Transportation	100%	100%	Türkiye
THY Destek Hizmetleri A.Ş. (TSS)	Support Services	100%	100%	Türkiye
THY Özel Güvenlik ve Koruma Hizmetleri A.Ş.	Security Services	100%	100%	Türkiye
AJet Hava Taşımacılığı A.Ş. (AJET)	Air Transportation	100%	100%	Türkiye
THY Finansal Teknolojiler A.Ş. (TKPAY)	Payment Services	100%	100%	Türkiye
TCI Kabin İçi Sistemleri San ve Tic. A.Ş. (TCI)	Cabin Interior Products	80%	80%	Türkiye
TSI Seats INC	Cabin Interior Products	80%	80%	USA

1. GROUP ORGANIZATION AND ITS OPERATIONS (cont'd)

Subsidiaries and Joint Ventures (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
GROUP ORGANIZATION AND ITS OPERATIONS (cont'd)
Subsidiaries and Joint Ventures (cont'd)
The table below sets out the joint ventures of the Group as of 31 March 2024 and 2023:
	Country of Registration and		Ownership Share and Voting Power
Company Name	Operations	31 March 2024	31 December 2023	Principal Activity
Güneş Ekspres Havacılık A.Ş. (Sun Express)	Türkiye	50%	50%	Aircraft Transportation
THY DO&CO İkram Hizmetleri A.Ş. (Turkish DO&CO)	Türkiye	50%	50%	Catering Services
TGS Yer Hizmetleri A.Ş. (TGS)	Türkiye	50%	50%	Ground Services
THY OPET Havacılık Yakıtları A.Ş. (THY Opet)	Türkiye	50%	50%	Aviation Fuel Services
P&W T.T. Uçak Bakım Merkezi Ltd. Şti. (TEC)	Türkiye	49%	49%	Maintenance Services
Air Albania SHPK (Air Albania)	Albania	49%	49%	Aircraft Transportation
We World Express Ltd. (We World Express)	Hong Kong	45%	45%	Cargo and Courier Transportation
Goodrich Thy Teknik Servis Merkezi Ltd. Şti. (TNC) (Goodrich)	Türkiye	40%	40%	Maintenance Services
TFS Akaryakıt Hizmetleri A.Ş. (TFS Akaryakıt)	Türkiye	25%	25%	Aviation Fuel Services

The Group owns 49%, 49%, 45%, 40% and 25% of equity shares of TEC, Air Albania, We World Express, Goodrich and TFS Akaryakıt respectively. However, based on the contractual arrangements between the Group and the other respective investors, decisions about the relevant activities of the arrangements require both the Group and the other shareholders according to the respective investor agreements. Thus, TEC, Air Albania, We World Express, Goodrich and TFS Akaryakıt are controlled jointly by the Group and other shareholders.

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1 Basis of Presentation

Statement of Compliance

The condensed consolidated interim financial statements as at and for the three-month period ended 31 March 2024 have been prepared in accordance with IAS 34 "Interim Financial Reporting". They do not include all of the information required for complete annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2023.

Basis of Preparation

Functional and Reporting Currency

Functional currency

conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2023.
Board of Directors has approved the condensed consolidated interim financial statements as of 31 March 2024 on 22 May 2024. General Assembly and the related regulatory bodies have the authority to modify the statutory financial statements.
Basis of Preparation
The consolidated financial statements, except for some financial instruments that are stated at fair value, have been prepared on the historical cost basis. Historical cost is generally based on the fair value of the consideration given in exchange for goods or services.
Functional and Reporting Currency
Functional currency
The consolidated financial statements of the Group are presented in USD, which is the functional currency of the Company. Details of the functional currencies of the subsidiaries of the Company are as follows;
Subsidiaries	Functional currencies
Turkish Technic	USD
TAFA	USD
THY Uluslararası Yatırım ve Taşımacılık A.Ş.	USD
THY Technology	TL
Widect	USD
TSS	TL
THY Özel Güvenlik ve Koruma Hizmetleri A.Ş.	TL
AJET	USD
TKPAY	TL
TCI	USD
TSI Seats INC	USD
Although the currency of the country in which the Company is domiciled is Turkish Lira ("TL"), the Company's functional currency is determined as USD. USD is used to a significant extent in, and has a significant impact on the operations of the Company and reflects the economic substance of the underlying events and circumstances relevant to the Company. Therefore, the Company uses USD in measuring items

Although the currency of the country in which the Company is domiciled is Turkish Lira ("TL"), the Company's functional currency is determined as USD. USD is used to a significant extent in, and has a significant impact on the operations of the Company and reflects the economic substance of the underlying events and circumstances relevant to the Company. Therefore, the Company uses USD in measuring items in its financial statements and as the functional currency. All currencies other than those selected for measuring items in the consolidated financial statements are treated as foreign currencies. Accordingly, transactions and balances not already measured in USD have been remeasured in USD in accordance with the relevant provisions of IAS 21, "the Effects of Changes in Foreign Exchange Rates".

Except where otherwise indicated, all amounts disclosed in financial statements and notes are rounded the nearest million (USD 000,000).

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.1 Basis of Presentation (cont'd)

Functional and Reporting Currency (cont'd)

Functional currency (cont'd)

Financial reporting in hyperinflationary economies

As of 31 March 2024, an adjustment has been made in accordance with the requirements of IAS 29, Financial Reporting in Hyperinflationary Economies ("IAS29") regarding the changes in the general purchasing power of TL. The terms of IAS 29 require that financial statements prepared in the currency in circulation in the 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. One of the requirements for the application of IAS 29 is a three-year cumulative inflation rate approaching or exceeding 100%. The correction was made using the correction factor obtained from the Consumer Price Index in Turkey published by Turkish Statistical Institute ("TUIK"). The indices and adjustment factors used to prepare the consolidated financial statements are as follows: Date Index Adjustment Factor Three Year Compound Inflation Rate 31 March 2024 2,139.47 1.00000 211% 31 December 2023 1,859.38 1.15063 268% 31 March 2023 1,269.75 1.68495 152%

Date	Index	Adjustment Factor	Three Year Compound Inflation Rate
31 March 2024	2.139.47	1.000000	211%
31 December 2023	1.859.38	1.15063	268%
31 March 2023	1.269.75	1.68495	152%

IAS 29 is applicable for the subsidiaries whose functional currencies are TL. These subsidiaries are THY Teknoloji, TSS, THY Özel Güvenlik ve Koruma Hizmetleri A.Ş. and TKPAY.

The main procedures for the above-mentioned restatement are as follows:

• Financial statements prepared in the currency of a hyperinflationary economy are stated in terms of the measuring unit current at the balance sheet date, and corresponding figures for previous periods are restated in the same terms.
• Monetary assets and liabilities that are carried at amounts current at the balance sheet date are not restated because they are already expressed in terms of the monetary unit current at the balance sheet date.
• Non-monetary assets and liabilities that are not carried at amounts current at the balance sheet date and components of equity are restated by applying the relevant monthly conversion factors.
• Comparative financial statements are restated using general inflation indices at the currency purchasing power at the latest balance sheet date. All items in the statement of profit or loss are restated by applying the relevant conversion factors.
• All items in the balance sheet, statement of profit or loss and other comprehensive income of the subsidiaries whose functional currencies are TL are translated into USD using the closing rate as of 31 March 2024. The combined effect of the restating in accordance with IAS 29 and translation in accordance with IAS 21 is presented as currency translation reserve in other comprehensive income.

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.1 Basis of Presentation (cont'd)

Basis of Consolidation

• a. The consolidated financial statements include the accounts of the parent company, THY, its subsidiaries and its joint ventures on the basis set out in sections (b) below. Financial statements of the subsidiaries and joint ventures are adjusted where applicable in order to apply the same accounting policies. All transactions, balances, profit and loss within the Group are eliminated during consolidation.
• b. The Group has nine joint ventures as disclosed in Note: 1. These joint ventures are economical activities whereby decisions about strategic finance and operating policy are jointly made by the consensus of the Group and other investors. The joint ventures are jointly controlled by the Group and other shareholders and are accounted for using.the.equity.method. Under the equity method, joint ventures are initially recognized at cost and adjusted to recognize any distributions received, impairments in the joint ventures and the Group's share of the profit or loss after the date of acquisition. Joint ventures' losses that exceed the Group's share are not recognized, unless the Group has incurred legal or constructive obligations on behalf of the joint venture.
• c. The non-controlling share in the assets and results of subsidiaries for the year are separately classified as "non-controlling interest" in the consolidated statements of financial position and consolidated statements of profit or loss.

Business Combinations

Business combinations are accounted for using the acquisition method at the acquisition date, which is the date on which control is transferred to the Group. Control occurs when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. In assessing control, the Group takes into consideration potential voting rights that currently are exercisable.

The Group measures goodwill at the acquisition date as follows:

• the fair value of the consideration transferred; plus

• the recognized amount of any non-controlling interests in the acquire; plus

• if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquire; less

• the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed.

When the excess is negative, a bargain purchase gain is recognized immediately in profit or loss.

The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts generally are recognized in profit or loss.

Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred.

2.2 Changes and Errors in Accounting Policies Estimates

The significant estimates and assumptions used in the preparation of these consolidated financial statements as at and for the period ended 31 March 2024 are consistent with those used in the preparation of the Group's consolidated financial statements as at and for the year ended 31 December 2023.

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.3 Summary of Significant Accounting Policies

The accounting policies used in preparation of condensed consolidated interim financial statements as at 31 March 2024 are consistent with those used in the preparation of consolidated statements for the year ended 31 December 2023.

2.4 New and Revised Standards and Interpretations

a) Standards, amendments, and interpretations applicable as of 31 March 2024:

Amendment to IAS 1 – Non-current liabilities with covenants; effective from annual periods beginning on or after 1 January 2024. These amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments also aim to improve information an entity provides related to liabilities subject to these conditions.

Amendment to IFRS 16 – Leases on sale and leaseback; effective from annual periods beginning on or after 1 January 2024. These amendments include requirements for sale and leaseback transactions in IFRS 16 to explain how an entity accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or rate are most likely to be impacted.

Amendments to IAS 7 and IFRS 7 on Supplier finance arrangements; effective from annual periods beginning on or after 1 January 2024. These amendments require disclosures to enhance the transparency of supplier finance arrangements and their effects on a company's liabilities, cash flows and exposure to liquidity risk. The disclosure requirements are the IASB's response to investors' concerns that some companies' supplier finance arrangements are not sufficiently visible, hindering investors' analysis.

IFRS S1, 'General requirements for disclosure of sustainability-related financial information; effective from annual periods beginning on or after 1 January 2024. This standard includes the core framework for the disclosure of material information about sustainability-related risks and opportunities across an entity's value chain.

IFRS S2, 'Climate-related disclosures'; effective from annual periods beginning on or after 1 January 2024. This is the first thematic standard issued that sets out requirements for entities to disclose information about climate-related risks and opportunities.

b) Standards, amendments, and interpretations that are issued but not effective as of 31 March 2024:

Amendments to IAS 21 - Lack of Exchangeability; effective from annual periods beginning on or after 1 January 2025. An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange mechanism that creates enforceable rights and obligations.

2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)

2.5 Determination of Fair Values

Various accounting policies and explanations of the Group necessitate to determine the fair value of both financial and non-financial assets and liabilities. If applicable, additional informations about assumptions used for the determination of fair value are presented in notes particular to assets and liabilities.

Evaluation methods in terms of levels are described as follows:

• Level 1: Quoted (unadjusted) prices in active markets for identical assets and obligations.
• Level 2: Variables obtained directly (via prices) or indirectly (by deriving from prices) which are observable for similar assets and liabilities other than quoted prices mentioned in Level 1.
• Level 3: Variables, which are not related to observable market variable for assets and liabilities (unobservable variables).

2.6 Going Concern

The Group has prepared its consolidated financial statements with the assumption on the Group's ability to continue its operations in the foreseeable future as a going concern.

3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD
31 March 2024	31 December 2023
	240
	85
	56
	47
	29
	30
	5
5	5
513	497
	The joint ventures accounted for using the equity method are as follows: 229 85 84 41 33 30 6

TGS	84	56
Turkish DO&CO TFS Akaryakıt	41	47
THY Opet	33 30	29 30
Goodrich	6	5
We World Express	5	5
Share of investments' profit / (loss) accounted by using the equity method are as follows:
	1 January -	1 January -
	31 March 2024	31 March 2023
TGS	19	4
TFS Akaryakıt	3	5
Turkish DO&CO	1	4
TEC	1	3
We World Express	-	-
Goodrich	-	-
Air Albania (**)	-	-
THY Opet	(2)	1
Sun Express	(20)	(29)
	2	(12)
(**) Since 31 December 2019, the loss of Air Albania, which exceeds the Group's total share in the joint venture's shareholders' equity, has not been accounted in the consolidated financial statements. As of 31 March 2024, the loss is USD 2. (The loss as of 31 December 2023: USD 2).
Movement in investments accounted by using the equity method is as follows:
	1 January - 31 March 2024	1 January - 31 March 2023
Opening balance	497	277
Other expense and income recognized in equity	15	(14)
Share of net profit	2	(12)
Equity investment disposal	-	(4)
Foreign currency translation difference	(1)	(10)

Turkish DO&CO	1	4
TEC	1	3
We World Express	-	-
THY Opet	(2)	1
Sun Express	(20)	(29)
(**) Since 31 December 2019, the loss of Air Albania, which exceeds the Group's total share in the joint venture's shareholders' equity, has not been accounted in the consolidated financial statements. As of 31 March 2024, the loss is USD 2. (The loss as of 31 December 2023: USD 2). Movement in investments accounted by using the equity method is as follows:
	1 January - 31 March 2024	1 January - 31 March 2023
Opening balance	497	277
Other expense and income recognized in equity	15	(14)
Share of net profit	2	(12)
Equity investment disposal Foreign currency translation difference	- (1)	(4) (10)

3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD (cont'd)

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD (cont'd)
				31 March 2024
			Turkish	TFS
	Sun Express	TEC	DO&CO	Akaryakıt	THY Opet	TGS	Other	Total
Total assets	2,477	317	204	480	140	379	39	4,036
Total liabilities	2,019	142	121	348	80	212	13	2,935
Total equity	458	175	83	132	60	167	26	1,101
Group's share in total equity	229	85	41	33	30	84	11	513
				1 January - 31 March 2024
Revenue	226	110	122	797	145	148	28	1,576
Profit for the year	(40)	3	1	11	(3)	38	2	12
Group's share in joint
venture's loss for the year	(20)	1	1	3	(2)	19	-	2
				31 December 2023
			Turkish	TFS
	Sun Express	TEC	DO&CO	Akaryakıt	THY Opet	TGS	Other	Total
Total assets	2,222	275	227	499	133	317	41	3,714
Total liabilities	1,743	102	134	381	73	206	17	2,656
Total equity	479	173	93	118	60	111	24	1,058
Group's share in total equity	240	85	47	29	30	56	10	497
				1 January - 31 March 2023
Revenue	171	118	100	768	159	119	13	1,448
Profit for the year	(60)	6	7	15	2	7	-	(23)
Group's share in joint
venture's loss for the year	(29)	3	4	5	1	4	-	(12)

4. SEGMENT REPORTING

Air Transport ("Aviation")

Technical Maintenance Services ("Technical")

4.1 Total Assets and Liabilities

31 March 2024	31 December 2023
	35,497
	1,937
	37,434
(1,906)	(1,763)
36,113	35,671
31 March 2024	31 December 2023
	19,982
535	535
20,478	20,517
(367)	(409)
	Group management makes decisions regarding resource allocation to segments based upon the results and the activities of its air transport and aircraft technical maintenance services segments for the purpose of segments' performance evaluation. The Group's principal activities can be summarized as follows: The Group's aviation activities consist of mainly domestic and international passenger and cargo air The Group's technical activities consist of mainly aircraft repair and maintenance services and providing technical and infrastructure support related to the aviation sector. The detailed information about the 36,066 1,953 38,019 19,943

4. SEGMENT REPORTING (cont'd)

4.2 Net Profit / (Loss)

	(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	As At And For the Three-Month Period Ended 31 March 2024
SEGMENT REPORTING (cont'd)
4.2 Net Profit / (Loss)
Segment Results:
1 January - 31 March 2024	Aviation	Technic	Inter-segment elimination	Total
Sales to External Customers	4,625	144	-	4,769
Inter-Segment Sales	94	320	(414)	-
Revenue	4,719	464	(414)	4,769
Cost of Sales (-)	(4,200)	(402)	357	(4,245)
Gross Profit	519	62	(57)	524
Administrative Expenses (-)	(134)	(31)	57	(108)
Selling and Marketing Expenses (-)	(442)	(3)	1	(444)
Other Operating Income Other Operating Expenses (-)	116 (58)	21 (9)	(26) 26	111 (41)
Operating Profit Before Investment Activities	1	40	1	42
Income from Investment Activities	310	-	-	310
Expenses from Investment Activities Share of Investments' Profit Accounted for Using	(2)	-	-	(2)
The Equity Method	1	1	-	2
Operating Profit	310	41	1	352
Financial Income	195	-	-	195
Financial Expense (-)	(362)	(17)	-	(379)
Profit Before Tax	143	24	1	168
Tax Income / (Expense)	76	(18)	-	58
Deferred Tax Income / (Expense)	76	(18)	-	58
Net Profit For The Period	219	6	1	226

4. SEGMENT REPORTING (cont'd)

4.2 Net Profit / (Loss) (cont'd)

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	As At And For the Three-Month Period Ended 31 March 2024	Notes to the Condensed Consolidated Interim Financial Statements
SEGMENT REPORTING (cont'd) 4.2 Net Profit / (Loss) (cont'd)
Segment Results (cont'd):
1 January - 31 March 2023	Aviation	Technic	Inter-segment elimination	Total
Sales to External Customers	4,246	107	-	4,353
Inter-Segment Sales	52	278	(330)	-
Revenue	4,298	385	(330)	4,353
Cost of Sales (-)	(3,648)	(342)	285	(3,705)
Gross Profit	650	43	(45)	648
Administrative Expenses (-)	(89)	(34)	25	(98)
Selling and Marketing Expenses (-)	(413)	(3)	-	(416)
Other Operating Income	115	15	(1)	129
Other Operating Expenses (-)	(141)	(9)	1	(149)
Operating Profit Before
Investment Activities	122	12	(20)	114
Income from Investment Activities	151	-		151
Expenses from Investment Activities	(12)	-	-	(12)
Share of Investments' Profit
Accounted for Using
The Equity Method	(15)	9	(6)	(12)
Operating Profit	246	21	(26)	241
Financial Income	356	1	-	357
Financial Expense (-)	(318)	(4)	-	(322)
Profit Before Tax	284	18	(26)	276
Tax (Expense) / Income	(49)	6	-	(43)
Current Tax (Expense)	-	(4)	-	(4)
Deferred Tax (Expense) / Income	(49)	10	-	(39)
Net Profit For The Period	235	24	(26)	233

4. SEGMENT REPORTING (cont'd)

4.3 Investment Operations

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
SEGMENT REPORTING (cont'd)
4.3 Investment Operations
			Inter-segment
1 January - 31 March 2024	Aviation	Technic	elimination	Total
Purchase of property and equipment
and intangible assets	742	84	-	826
Current period depreciation and amortization charge	478	53	-	531
Investments accounted
for using equity method	423	90	-	513
			Inter-segment
1 January - 31 March 2023	Aviation	Technic	elimination	Total
Purchase of property and equipment
and intangible assets	659	105	-	764
Current period depreciation	449	48	-	497
and amortization charge

Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
SEGMENT REPORTING (cont'd)
4.3 Investment Operations
				Inter-segment elimination	Total
Purchase of property and equipment Current period depreciation
Investments accounted
1 January - 31 March 2023		Aviation	Technic	Inter-segment elimination	Total
Purchase of property and equipment and intangible assets		659	105	-	764
Current period depreciation and amortization charge		449	48	-	497
Investments accounted for using equity method		128	109	-	237
CASH AND CASH EQUIVALENTS
			31 March 2024		31 December 2023
Cash				1	1
Banks – Time deposits				578	583
Banks – Demand deposits				262	99
				841	683
Details of the time deposits as of 31 March 2024 and 2023 are as follows:
Original Amount	Currency	Effective Interest Rate		Maturity	31 March 2024
14,847	TL	44.65% - 61.75%		June 2024	498
53	EUR (*)	1.88% - 3.75%		June 2024	57
19	USD	1.13% - 2.25%		April 2024	19
4	GBP	1.31%		April 2024	4
					578

5. CASH AND CASH EQUIVALENTS

	31 March 2024	31 December 2023
Cash
Banks - Time deposits	578	583
Banks – Demand deposits	262	99
	841	683

Current period depreciation
Investments accounted
CASH AND CASH EQUIVALENTS
		Details of the time deposits as of 31 March 2024 and 2023 are as follows:
Original Amount	Currency	Effective Interest Rate	Maturity	31 March 2024
14,847	TL	44.65% - 61.75%	June 2024		498
53	EUR (*)	1.88% - 3.75%	June 2024		57
19	USD	1.13% - 2.25%	April 2024		19
4	GBP	1.31%	April 2024		4
					578
Original Amount	Currency	Effective Interest Rate	Maturity	31 December 2023
264	EUR (*)	0.01% - 4.05%	January 2024		292
6,139	TL	38.95% - 53.20%	January 2024		214
72	USD	1.50% - 3.38%	January 2024		72
4	GBP	1.69%	January 2024		5
					583

5. CASH AND CASH EQUIVALENTS (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
As At And For the Three-Month Period Ended 31 March 2024
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
CASH AND CASH EQUIVALENTS (cont'd)
Reconciliation with statement of cash flows as of 31 March 2024 and 2023 are as follows:
	31 March 2024	31 March 2023
Cash and cash equivalents	841	2,620
Interest accruals (-)	(38)	(10)

6. FINANCIAL INVESTMENTS

		CASH AND CASH EQUIVALENTS (cont'd)
		Reconciliation with statement of cash flows as of 31 March 2024 and 2023 are as follows:
		Cash and cash equivalents in statement of cash flows	803	2,6104
	FINANCIAL INVESTMENTS
	Short-term financial investments are as follows:
			31 March 2024	31 December 2023
	Fair value through profit and loss (FVTPL)
	- Currency protected deposit account (*)		4,090	4,863
- Equity securities			47	16
- Investment Fund			31	22
(FVOCI)		Fair value through other comprehensive income
- Corporate debt securities			435	443
	- Government debt securities		3	-
		Time deposits with maturity more than 3 months	219	-
			4,825	5,344

Amount	Currency	Effective Interest Rate	Maturity	31 March 2024
				219

6. FINANCIAL INVESTMENTS (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
FINANCIAL INVESTMENTS (cont'd)
Long-term financial investments are as follows:
	31 March 2024	31 December 2023
FVOCI
- Corporate debt securities	329	139
- Government debt securities	211	258
Other	1	1
	541	398
Contractual maturity dates of financial investments measured at FVOCI as of 31 March 2024 and 2023 are
as follows:
	31 March 2024	31 December 2023
Less than 1 year 1 to 5 years	438 262	443 119
Over 5 years	278	278

- Corporate debt securities	329	139
- Government debt securities	211	258
Other	1	1
Contractual maturity dates of financial investments measured at FVOCI as of 31 March 2024 and 2023 are as follows:
	31 March 2024	31 December 2023
Less than 1 year	438	443
1 to 5 years	262	119
Over 5 years	278	278
Short-term borrowings are as follows:
	31 March 2024	31 December 2023
Bank borrowings	1,170	1,345
Short-term portions of long-term borrowings are as follows:
	31 March 2024	31 December 2023
Lease liabilities (Note: 13)	1,694	1,760
Bank borrowings	412	618
	2,106	2,378
Long-term borrowings are as follows:
	31 March 2024	31 December 2023

7. BORROWINGS

Bank borrowings	1,170	1,345

Lease liabilities (Note: 13)	1,694	1,760
Bank borrowings	412	618

BORROWINGS
Short-term borrowings are as follows:
Bank borrowings	1,170	1,345
Short-term portions of long-term borrowings are as follows:
Lease liabilities (Note: 13)	1,694	1,760
Bank borrowings	412	618
	2,106	2,378
Long-term borrowings are as follows:
	31 March 2024	31 December 2023
Lease liabilities (Note: 13)	9,919	10,052
Bank borrowings	144	472
	10,063	10,524
Details of bank borrowings as of 31 March 2024 and 2023 are as follows:
	31 March 2024	31 December 2023

	31 March 2024	31 December 2023
Less than 1 year	1,582	1,963
Between 1 – 5 years	133	457
Over 5 years	11	15
	1,726	2,435

7. BORROWINGS (cont'd)

			TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
	BORROWINGS (cont'd)
				Details of bank borrowings as of 31 March 2024 and 2023 are as follows (cont'd):
Original		Interest	Effective Interest
Amount	Currency	Rate Type	Rate	Payment Period	31 March 2024
1,403	EUR	Fixed	0.20% - 4.00%	April 2024 - March 2031	1,499
			Euribor + 2.90% -
210	EUR	Floating	Euribor + 5.50%	July 2024 - October 2025	227
					1,726
Original		Interest	Effective Interest		31 December
Amount	Currency	Rate Type	Rate	Payment Period	2023

			TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
	BORROWINGS (cont'd)
			Details of bank borrowings as of 31 March 2024 and 2023 are as follows (cont'd):
Original Amount	Currency	Interest Rate Type	Effective Interest Rate		Payment Period		31 March 2024
			Euribor + 2.90% -
							1,726
Original Amount	Currency	Interest Rate Type	Effective Interest Rate		Payment Period		31 December 2023
1,443	EUR	Fixed	0.20% - 4.00%		March 2024 - March 2031		1,597
758	EUR	Floating	Euribor + 2.90% - Euribor + 5.50%		February 2024 - August 2026		838 2,435
			As of March 31, 2024, the Group meets the loan covenant compliance conditions.
			Repricing periods for bank borrowings with floating interest rates vary between 1 and 6 months.
			Reconciliation of bank borrowings and lease liabilities arising from financing activities:
		31 December 2023	Payment	Interest	Non-cash Changes	Cash-in	31 March 2024
Bank Borrowings		2,435	(1,680)	(59)	(14)	1,044	1,726
		31 December 2022	Payment	Interest	Non-cash Changes	Cash-in	31 March 2023

Original		Interest		Effective Interest				31 December
Amount	Currency	Rate Type		Rate		Payment Period		2023
				Euribor + 2.90% -
								2,435
						As of March 31, 2024, the Group meets the loan covenant compliance conditions.
						Repricing periods for bank borrowings with floating interest rates vary between 1 and 6 months.
						Reconciliation of bank borrowings and lease liabilities arising from financing activities:
		31 December				Non-cash
			2023	Payment	Interest	Changes	Cash-in	31 March 2024
Bank Borrowings			2,435	(1,680)	(59)	(14)	1,044	1,726
		31 December				Non-cash
			2022	Payment	Interest	Changes	Cash-in	31 March 2023
Bank Borrowings			3,273	(923)	(40)	113	968	3,391
	31 December				Non-cash		New
		2023	Payment	Interest	Changes	Modifications	Leases	31 March 2024
Aircraft		11,221	(423)	(77)	(209)		- 524	11,036
Property		590	(15)	-	(9)		8 -	574
Other		1	-	-	-		- 2	3
		11,812	(438)	(77)	(218)		526 8	11,613
	31 December	2022	Payment	Interest	Non-cash Changes	Modifications	New Leases	31 March 2023
Aircraft		10,171	(413)	(55)	342		- 247	10,292
Property		593	(15)	-	18		- 38	634
		2	-	-	-		- -	2
Other				(55)	360		285 -	10,928

8. RELATED PARTIES

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
RELATED PARTIES
Short-term trade receivables from related parties are as follows:
	31 March 2024	31 December 2023
Air Albania	37	36
We World Express	5	9
Sun Express	5	4
PTT	- 47	1 50
Other short-term receivables from related parties are as follows:
	31 March 2024	31 December 2023
THY Opet	7	7
Air Albania	2	2
	9	9
Short-term trade payables to related parties that are accounted by using the equity method are as follows:
	31 March 2024	31 December 2023
TFS Akaryakıt Hizmetleri	134	132
TGS	64	57
Turkish DO&CO	31	42
THY Opet	16	19

Air Albania	2	2
	9	9

2
9
Short-term trade payables to related parties that are accounted by using the equity method are as follows:
31 December 2023
132
57
42
19
32
2
1
285
31 December 2023
4
4

2	4

8. RELATED PARTIES (cont'd)

a) Sales to related parties:

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
RELATED PARTIES (cont'd)
Transactions with related parties for the period ended 31 March 2024 and 2023 are as follows:
a) Sales to related parties:
	1 January - 31 March 2024	1 January - 31 March 2023
TGS	20	1
Sun Express	8	11
TEC	3	4
Air Albania	1	3
Türkiye Sigorta A.Ş.	1	-
PTT	1	2
We World Express	1	-
	35	21
b) Purchases from related parties:
	1 January - 31 March 2024	1 January - 31 March 2023

b) Purchases from related parties:

TEC	3	4
Air Albania	1	3
Türkiye Sigorta A.Ş.	1	-
PTT	1	2
b) Purchases from related parties:
	1 January - 31 March 2024	1 January - 31 March 2023
TFS Akaryakıt Hizmetleri	685	659
TGS	132	117
Turkish DO&CO	106	95
THY Opet	84	93
TEC	70	115
Goodrich	4	2
Sun Express	3	8
Turkcell	3	4
	1,087	1,093
Details of the financial assets and liabilities for related parties as of 31 March 2024 and 2023 are as follows:
	31 March 2024	31 December 2023

Turkish DO&CO
	106	95
THY Opet	84	93
TEC	70	115
Goodrich	4	2
Sun Express	3	8
Turkcell	3	4
Details of the financial assets and liabilities for related parties as of 31 March 2024 and 2023 are as follows:	31 March 2024	31 December 2023
Financial investments (*)
	2,694	3,174
Financial assets (**)	979	841
Banks - Time deposits	495	571
	30	21
Investment Fund		1
Equity share	1
Banks - Demand deposits	-	10
Bank borrowings	(87)	(543)

As of 31 March 2024, the amount of letters of guarantees given to the related parties is USD 263 (31 December 2023: USD 432).

8. RELATED PARTIES (cont'd)

		TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
		Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
	RELATED PARTIES (cont'd)
		Details of the time deposits at related parties as of 31 March 2024 and 2023 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 March 2024
12,311	TL	47.41% - 61.75%	June 2024	415
53	EUR	1.88% - 3.75%	June 2024	57
19	USD	1.13% - 2.25%	April 2024	19
4	GBP	1.31%	April 2024	4
				495
Amount	Currency	Effective Interest Rate	Maturity	31 December 2023
264	EUR	0.01% - 4.05%	January 2024	292
5,772	TL	38.95% - 53.20%	January 2024	202
72	USD	1.50% - 3.38%	January 2024	72
4	GBP	1.69%	January 2024	5
				571
		Details of the financial investments at related parties as of 31 March 2024 and 2023 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 March 2024

		571

				495
				571
		Details of the financial investments at related parties as of 31 March 2024 and 2023 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 March 2024
77,880	TL	15.00% - 57.95%	February 2025	2,667
25	EUR	3.75%	July 2024	27
				2,694
Amount	Currency	Effective Interest Rate	Maturity	31 December 2023
93,432	TL	15.00% - 54.15%	November 2024	3,174
		Details of the financial assets at related parties as of 31 March 2024 and 2023 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 March 2024
536	USD	5.38% - 8.60%	April 2024 - September 2024	536
			April 2024 -
411	EUR	3.25% - 5.70%	September 2024	443

93,432	TL	15.00% - 54.15%	November 2024	3,174

Details of the financial investments at related parties as of 31 March 2024 and 2023 are as follows:	571
Amount Currency Maturity Effective Interest Rate	31 March 2024
	2,694
93,432 TL 15.00% - 54.15% November 2024	3,174
Amount Currency Effective Interest Rate Maturity	31 March 2024
Details of the financial assets at related parties as of 31 March 2024 and 2023 are as follows:
April 2024 -
536 USD 5.38% - 8.60% September 2024	536
April 2024 -
411 EUR September 2024 3.25% - 5.70%	443
	979
Amount Currency Effective Interest Rate Maturity 31 December 2023
January 2024 -
406 EUR 3.25% - 5.70% June 2024	449
January 2024 -
392 USD June 2024 5.38% - 8.60%	392
	841

8. RELATED PARTIES (cont'd)

		TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
	RELATED PARTIES (cont'd)
		Details of the bank borrowings at related parties as of 31 March 2024 and 2023 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 March 2024
81	EUR	2.55% - (Euribor + 5.50%)	October 2025	87
Amount	Currency	Effective Interest Rate	Maturity	31 December 2023
496	EUR	2.55% - (Euribor + 5.50%)	March 2026	543
	Interest income from related parties:
			1 January - 31 March 2024	1 January - 31 March 2023
Türkiye Halk Bankası A.Ş. (Halk Bankası)			162	10
(Vakıfbank)	Türkiye Vakıflar Bankası T.A.O.		125	55
T.C. Ziraat Bankası A.Ş.			123	9
(Ziraat Bankası) Ziraat Katılım Bankası A.Ş.			13	-
			423	74
	Interest expense to related parties:
			1 January - 31 March 2024	1 January - 31 March 2023

	1 January - 31 March 2024	1 January - 31 March 2023
Türkiye Halk Bankası A.Ş.
Türkiye Vakıflar Bankası T.A.O.
T.C. Ziraat Bankası A.Ş.
Interest expense to related parties:
	1 January - 31 March 2024	1 January - 31 March 2023
Vakıfbank	4	9
Ziraat Bankası	3	5
	7	14

Interest expense to related parties:

	1 January - 31 March 2024	1 January - 31 March 2023
Vakıfbank	4	9
Ziraat Bankası	3	5

Transactions between the Group and THY Opet are related to the supply of aircraft fuel; transactions between the Group and Turkish DO&CO are related to catering services; transactions between the Group and Sun Express are related to cargo operations, seat sales operations and maintenance services; transactions between the Group and TGS are related to ground and support services; transactions between the Group and TEC are related to engine maintenance services; transactions between the Group and PTT are related to cargo transportation; transactions between the Group and Halk Bankası, Ziraat Bankası, Türkiye Vakıflar Bankası and Ziraat Katılım Bankası A.Ş. are related to banking services; transactions between the Group and Air Albania are related to aircraft transportation; transactions between the Group and Turkcell are related to telecommunication services; transactions between the Group and Goodrich are related to maintenance services; transactions between the Group and Türkiye Sigorta are related to insurance services; transactions between the Group and We World Express are related to cargo transportation and transactions between the Group and TFS Akaryakıt Hizmetleri A.Ş. are related to the supply of aircraft fuel. Receivables from related parties are not collateralized and maturity of trade receivables is 30 days.

The total amount of all short-term benefits, including salaries, bonuses, vehicles allocated for their use and communication expenses provided for the Board Members, General Managers and Deputy General Managers of Group is USD 3 for the period between 1 January-31 March 2024 (1 January- 31 March 2023: USD 1).

9. OTHER RECEIVABLES

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements
As At And For the Three-Month Period Ended 31 March 2024
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
OTHER RECEIVABLES
Other short-term receivables from third parties as of 31 March 2024 and 2023 are as follows:
	31 March 2024	31 December 2023
Predelivery payments made for aircraft (Gross)	318	305
Receivables from technical purchases	229	187
Bank deposits with transfer limitations (*)	179	225
Value added tax receivables	26	69
Receivables from pilots for flight training Others	26 48	29 65

(*) As of 31 March 2024, the amount consists of bank deposits in Ethiopia, Bangladesh, Syria, Algeria,
Nigeria, Senegal, Niger, Mali, Burkina Faso, Mozambique, Republic of Angola, Republic of Cameroon,
Republic of Chad, Gabon, Benin, Republic of Cote D'ivoire, Republic of Sudan, Republic of Lebanon,
Congo, Republic of Ghana, Egypt, Republic of Pakistan, Ukraine, Mauritania and Iran. (As of 31 December 2023, the amount consists of bank deposits in Ethiopia, Bangladesh, Libya, Syria, Algeria,
Nigeria, Senegal, Niger, Mali, Burkina Faso, Eritrea, Mozambique, Republic of Angola, Republic of
Cameroon, Republic of Chad, Gabon, Benin, Republic of Cote D'ivoire, Republic of Sudan, Republic of
Lebanon, Congo, Republic of Ghana, Egypt, Republic of Pakistan, Ukraine, Mauritania and Iran).
Other long-term receivables from third parties as of 31 March 2024 and 2023 are as follows:
	31 March 2024	31 December 2023
Investment incentives (**)	608	613
	452	501
Predelivery payments made for aircraft (Gross) Receivables from pilots for flight training	175	172
Deposits and guarentees given	85	80
Interest and commodity swap agreement deposits	-	29
	1,320	1,395

10. DEFERRED INCOME

Deferred income is as follows:

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) DEFERRED INCOME
Deferred income is as follows:
	31 March 2024	31 December 2023
Passenger flight liabilites	3,445	2,656
Other short-term deferred income	186	49
	3,631	2,705
Passenger flight liability is as follows:
	31 March 2024	31 December 2023
Flight liability for ticket sales	3,187	2,420
Frequent flyer program liability	258	236
	3,445	2,656
Other short-term deferred income is as follows:
	31 March 2024	31 December 2023

Passenger flight liability is as follows:

	31 March 2024	31 December 2023
Flight liability for ticket sales	3,187	2,420

Other short-term deferred income is as follows:

Deferred income is as follows:
	31 March 2024	31 December 2023
Passenger flight liability is as follows:
	31 March 2024	31 December 2023
Flight liability for ticket sales	3,187	2,420
Other short-term deferred income is as follows:
	31 March 2024	31 December 2023
Unused Manufacturers' credits	92	-
Deferred finance income	31	31
Advances received	16	10
Other	47	8
	186	49
Long-term deferred income is as follows:
	31 March 2024	31 December 2023
Deferred finance income	93	107
Other	76	1
		108

Long-term deferred income is as follows:

31 March 2024	31 December 2023

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

11. PROPERTY AND EQUIPMENT

	As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	Notes to the Condensed Consolidated Interim Financial Statements	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
PROPERTY AND EQUIPMENT
	Land improvements and buildings	Technical equipment, simulator and vehicles	Other equipment, and fixtures Aircraft		Spare engines	Components and repairable spare parts	Leasehold improvements	Construction in progress	Total
Cost
Opening balance at 1 January 2024	1,554	812	321	7,529	881	846	254	323	12,520
Additions	2	7	11	35	3	61	(7)	88	200
Transfer (*)	34	6	2	6	-	-	1	(71)	(22)
Transfers to inventories	-	-	-	-	-	-	-	(8)	(8)
Transfers between the account	-	-	-	305	-	-	-	-	305
Disposals	-	(1)	(1)	(50)	(6)	(38)	-	-	(96)
Closing balance at 31 March 2024	1,590	824	333	7,825	878	869	248	332	12,899
Accumulated Depreciation
Opening balance at 1 January 2024	470	424	249	4,344	388	428	142	-	6,445
Depreciation charge	17	10	6	107	20	34	4	-	198
Transfers between the account Disposals	-	4	-	114	-	-	-	-	118
	-	(5)	(1)	(49)	(6)	(30)	-	-	(91)
Closing balance at 31 March 2024 Net book value at 31 March 2024	487	433	254	4,516	402	432	146	-	6,670
	1,103	391	79	3,309	476	437	102	332	6,229
Net book value at 31 December 2023	1,084	388	72	3,185	493	418	112	323	6,075

USD 512 of depreciation and amortization expenses recognized in cost of sales (31 March 2023: USD 479), USD 17 of general administrative expenses (31 March 2023: USD 17) and USD 2 of marketing and sales expenses (31 March 2023: USD 1) in total of USD 531 as of 31 March 2024 (31 March 2023: USD 497).

The Group's construction in progress balances mainly consists of İstanbul Airport buildings, aircraft modifications, engine maintenance, backup engines and simulators.

11. PROPERTY AND EQUIPMENT (cont'd)

Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
PROPERTY AND EQUIPMENT (cont'd)
	Land improvements and buildings	Technical equipment, simulator and vehicles	Other equipment, and fixtures Aircraft		Spare engines	Components and repairable spare parts	Leasehold improvements	Construction in progress	Total
Cost
Opening balance at 1 January 2023	1,600	759	279	5,028	750	746	210	242	9,614
Additions	-	7	12	82	22	61	1	65	250
Transfer (*)	-	1	-	21	10	-	2	(55)	(21)
Transfers between the accounts	-	-	-	921	33	-	-	-	954
Disposals	-	(1)	(1)	(112)	(16)	(30)	-	-	(160)
Closing balance at 31 March 2023	1,600	766	290	5,940	799	777	213	252	10,637
Accumulated Depreciation
Opening balance at 1 January 2023	406	385	229	3,108	319	387	126	-	4,960
Depreciation charge	18	10	5	80	20	27	4	-	164
Transfers between the accounts	-	-	-	434	17	-	-	-	451
Disposals	-	(1)	(1)	(105)	(16)	(17)	-	-	(140)
Closing balance at 31 March 2023	424	394	233	3,517	340	397	130	-	5,435
Net book value at 31 March 2023	1,176	372	57	2,423	459	380	83	252	5,202

11. PROPERTY AND EQUIPMENT (cont'd)

PROPERTY AND EQUIPMENT (cont'd)		(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
Right of use assets are as follows:
	Aircraft	Spare engines	Real Estate	Vehicles	Total
Cost
Opening balance at 1 January 2024	22,011	338	663	8	23,020
Additions	616	-	-	2	618
Transfer	22	-	-	-	22
Disposals	(65)	-	-	(4)	(69)
Modifications	-	-	8	-	8
Transfers between the accounts (*)	(305)	-	-	-	(305)
Closing balance at 31 March 2024	22,279	338	671	6	23,294
	Aircraft	Spare engines	Real Estate	Vehicles	Total
Accumulated Depreciation
Opening balance at 1 January 2024	5,936	71	78	7	6,092
Depreciation charge	313	5	10	1	329
Disposals	(65)	-	-	-	(65)
Transfers between the account (*)	(114)	-	-	(4)	(118)
Closing balance at 31 March 2024	6,070	76	88	4	6,238
Net book value at 31 March 2024	16,209	262	583	2	17,056
	Aircraft	Spare engines	Real Estate	Vehicles	Total
Cost
Opening balance at 1 January 2023	21,737	369	654	7	22,767
Additions	477	-	36	-	513
Transfers	21	-	-	-	21
Disposals	(67)	-	-	-	(67)
	(921)	(33)	-	-	(954)
Transfers between the accounts (*) Closing balance at 31 March 2023
	21,247	336	690	7	22,280
	Aircraft	Spare engines	Real Estate	Vehicles	Total
Accumulated Depreciation
Opening balance at 1 January 2023	6,044	83	59	4	6,190
Depreciation charge	311	6	9	2	328
Disposals	(67)	-	-	-	(67)
Transfers between the account (*)	(434)	(17)	-	-	(451)
					6,000
Closing balance at 31 March 2023	5,854	72	68	6

12. INTANGIBLE ASSETS

	As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	Notes to the Condensed Consolidated Interim Financial Statements	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
INTANGIBLE ASSETS
	Slot rights and acquired technical licenses (*)	Rights	Other intangible assets	Total
Cost
Opening balance at 1 January 2024	44	299	5	348
Additions	-	8	-	8
Closing balance at 31 March 2024	44	307	5	356
Accumulated Amortization
Opening balance at 1 January 2024	-	258	3	261
Amortization charge		4	-	4
Closing balance at 31 March 2024	-	262	3	265
Net book value at 31 March 2024	44	45	2	91
Net book value at 31 December 2023	44	41	2	87
	Slot rights and acquired technical licenses (*)	Rights	Other intangible assets	Total
Cost
Opening balance at 1 January 2023	44	263	5	312
Additions	-		1 -	1
Disposals	-	(2)	-	(2)
Closing balance at 31 March 2023	44	262	5	311
Accumulated Amortization
Opening balance at 1 January 2023	-	232	3	235
Amortization charge	-		5 -	5
Closing balance at 31 March 2023	-	237	3	240
Net book value at 31 March 2023	44	25	2	71

13. LEASES

Maturities of lease obligations are as follows:
	Future Minimum Lease Payments		Interest		Present Values of Minimum
					Lease Payments
	31 March 2024	31 December 2023	31 March 2024	31 December 2023	31 March 2024	31 December 2023
Less than 1 year	2,067	2,141	(373)	(381)	1,694	1,760
Between 1 – 5 years	6,322	6,505	(919)	(991)	5,403	5,514
Over 5 years	5,169 13,558	5,170 13,816	(653) (1,945)	(632) (2,004)	4,516 11,613	4,538 11,812
				31 March 2024		31 December 2023
Interest Range:
Floating rate obligations				5,382		5,463 6,349
Fixed rate obligations				6,231
				11,613		11,812
The Group's assets that are acquired by leasing have lease term of 1 to 45 years. The Group has options to purchase related assets for an insignificant amount at the end of lease terms. The Group's obligations under finance leases are secured by the lessors' title to the leased asset. As of 31 March 2024, the USD, Euro, JPY and Swiss Franc denominated lease obligations' weighted average interest rates are 5.55% (31 December 2023: 5.62%) for the fixed rate obligations and 1.38% (31 December 2023: 1.43%) for the floating rate obligations.
PROVISIONS, CONTINGENT ASSETS AND LIABILITIES
Short-term provisions as of 31 March 2024 and 2023 are as follows:
Short-term provision for employee benefits is as follows:
				31 March 2024		31 December 2023

14. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

	31 March 2024	31 December 2023
Provisions for unised vacation	8 રે	રે જિ

purchase related assets for an insignificant amount at the end of lease terms. The Group's obligations under finance leases are secured by the lessors' title to the leased asset.
As of 31 March 2024, the USD, Euro, JPY and Swiss Franc denominated lease obligations' weighted average interest rates are 5.55% (31 December 2023: 5.62%) for the fixed rate obligations and 1.38% (31 December 2023: 1.43%) for the floating rate obligations.
PROVISIONS, CONTINGENT ASSETS AND LIABILITIES
Short-term provisions as of 31 March 2024 and 2023 are as follows:
Short-term provision for employee benefits is as follows:
Changes in the provisions for the period ended 31 March 2024 and 2023 are set out below:	1 January - 31 March 2024	1 January - 31 March 2023
Provisions at the beginning of the period	50	39
Provisions for the current period	188	122
Foreign currency translation differences Provisions released	(5) (148)	- (108)

14. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont'd)
The Group recognizes an obligation for unused vacation liabilities based on vacation balances and salaries of employees at the end of each reporting period.
Other short-term provision is as follows:
	31 March 2024	31 December 2023
Provisions for legal claims	7	6
Changes in the provisions for legal claims for the period ended 31 March 2024 and 2023 are set out below:

Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont'd)
The Group recognizes an obligation for unused vacation liabilities based on vacation balances and salaries of employees at the end of each reporting period.
Other short-term provision is as follows:
Changes in the provisions for legal claims for the period ended 31 March 2024 and 2023 are set out below:
	1 January -	1 January -
Provisions at the beginning of the period	31 March 2024 6	31 March 2023 6
Provisions for the current year	2	1
Foreign currency translation differences	(1)	-

15. COMMITMENTS

As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) COMMITMENTS
a) Guarantees/Pledges/Mortgages ("GPM") given by the Group:
Amount of letters of guarantees given as of 31 March 2024 is USD 342 (31 December 2023: USD 1,112).
As of 31 March 2024, the letters of guarantee are given to various authorities (i.e. various banks and vendors.)
	31 March 2024			31 December 2023
	Original currency amount	USD equivalent	Original currency amount	USD equivalent
A. Total amounts of GPM given on the behalf of its own legal entity -Collaterals	-	342	-	1,112
TL	301	9	137	5
EUR	210	226	835	924
USD	64	64	64	64
Other	-	43	-	119
B. Total amounts of GPM given on the behalf of subsidiaries that are included in full consolidation	-	-	-	-
C. Total amounts of GPM given in order to guarantee third party debts for
routine trade operations D. Total amounts of other GPM given i. Total amount of GPM given on	- -	- -	- -	- -
behalf of the Parent ii. Total amount of GPM given on behalf of other group companies not	-	-	-	-
covered in B and C	-	-	-	-
iii. Total amount of GPM given on behalf of third parties not covered in C	-	-	-	-
		342		1,112

b) Aircraft purchase commitments:

The Group has signed agreements for 419 aircraft that will be delivered between the years 2024 and 2045,(294 of aircraft are contractual and 125 of them are optional) with a list price value of USD 50,577 each. The Group has made a predelivery payment of USD 841 relevant to these purchases as of 31 March 2024 (31 December 2023: USD 868).

16. EMPLOYEE BENEFITS

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
EMPLOYEE BENEFITS
Provisions for retirement pay liability as of 31 March 2024 and 2023 are comprised of the following:
	31 March 2024	31 December 2023
Provision for retirement pay liability	213	229
Under Labor Law, effective in Türkiye, it is an obligation to make legal retirement pay to employees whose
employment is terminated in certain ways.

Retirement pay liability is subject to a limitation of monthly salaries by USD 1,084 (full) (equivalent of TL 35,059 (full)) as of 31 March 2024. (31 December 2023: USD 797 (full) equivalent to TL 23,490 (full)).

Retirement pay liability is not subject to any funding legally. Provisions for retirement pay liability are calculated by estimating the present value of probable liability that will arise due to the retirement of employees.

methods under defined benefit plans. Actuarial assumptions used in calculation of total liabilities are described as follows:	IAS 19 ("Employee Benefits") stipulates the progress of the Group's liabilities by use of actuarial valuation
The critical assumption is that the maximum liability amount increases in accordance with the inflation rate for every service year. Provisions in the accompanying consolidated financial statements as of 31 March 2024 are calculated by estimating the present value of liabilities due to the retirement of employees. Provisions in the relevant balance sheet dates are calculated with the assumptions of 24.61% annual inflation rate (31 December 2023: 24.61%) and 28.00% interest rate (31 December 2023: 28.00%). Estimated amount of non-paid retirement pay retained in the Group due to voluntary leaves is assumed as 2.24% (31 December 2023: 2.38%). Ceiling for retirement pay is revised semi-annually. Ceiling amount of USD 1,084 (full) (equivalent to TL 35,059 (full)) which has been in effect since 1 January 2024, is used in the calculation of the Group's provision for retirement pay liability.
Movement in the provisions for retirement pay liability is as follows:
	1 January - 31 March 2024	1 January - 31 March 2023
Provision at the beginning of the period
Interest charges	229	273
	14	7
Service charge for the year	8	8
Payments	(5)	(4)
Actuarial loss Foreign currency translation difference	(6) (27)	3 (12)
Provision at the end of the period	213	275

17. EXPENSES BY NATURE

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
EXPENSES BY NATURE
Expenses by nature for the period ended 31 March 2024 and 2023 are as follows:
	1 January -	1 January -
	31 March 2024	31 March 2023
Fuel Personnel	1,537 1,026	1,477 726
Depreciation and amortisation	531	497
Ground services	304	262
Aircraft maintenance	256	241
Airport	219	202
Passenger services and catering	212	186
Air traffic control	185	160
Commissions and incentives	157	150
Wet lease	92	30
Reservation systems	78	82
Advertisement and promotion	35	35
Service	23	42
Taxes and duties	20	19
Insurance	17	16
IT and communication	16	11
Transportation	15	13
Rents	10	8
Call center	7	9
Systems use and associateship	7	5
Consultancy	7	5
Utility	6	12
Aircraft rent	5	5
Other	32	26
	4,797	4,219

18. SHAREHOLDERS' EQUITY

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
SHAREHOLDERS' EQUITY
The ownership structure of the Company's share capital is as follows:
					31 December
(Millions of TL)	Class	%	31 March 2024	%	2023
Türkiye Wealth Fund	A	49.12	678	49.12	678
Republic of Türkiye Treasury and
Finance Ministry Privatization	C	-	-	-	-
Administration
Treasury Shares (*)	A	0.35	5		5
Other (publicly held)	A	50.53	697	50.53	697
Paid-in capital (Turkish Lira)			1,380		1,380
Inflation adjustment on share capital					1,124
(Turkish Lira) (**)			1,124
Share capital (Turkish Lira)			2,504		2,504

(*) In accordance with the Capital Market Board's Communique II-22.1 on treasury shares and the related announcement dated 14.02.2023, in order to contribute to the fair price formation of Company's share, Board of Directors of THY A.O. decided to launch a Share Buy-back program covering 3 calendar years and to allocate a maximum of USD 480 (TL 9,000) for treasury shares from Company's cash portfolio, while limiting the number of shares that may be subject to buy-back be at most 5% of the issued share capital. According to share buy-back program, company purchased 4,797,044 shares with the amount of USD 33 as of 31 March 2024.

(**) Inflation adjustment on share capital represents inflation uplift of historical capital payments based on inflation indices until 31 December 2004.

As of 31 March 2024, the Registered paid-in share capital of the Company comprised 137,999,999,999 Class A shares and 1 Class C share, all with a par value of Kr 1 each. The Class C share belongs to the Republic of Türkiye Treasury and Finance Ministry Privatization Administration and has the following privileges:

• Articles of Association 7: Positive vote of the board member representing class C share with the Board's approval is necessary for transfer of shares issued to the name.
• Articles of Association 10: The Board of Directors consists of nine members of which one member has to be nominated by the class C shareholder and the other eight members must be elected by class A shareholders.
• Articles of Association 14: The following decisions of the Board of Directors are subject to the positive vote of the class C Shareholder:
• a) Decisions that will negatively affect the Group's mission, Defined in Article 3.1. of the Articles of Association,
• b) Suggesting change in the Articles of Association at General Assembly,
• c) Increasing share capital,
• d) Approval of transfer of the shares issued to the name and their registration to the "Share Registry",
• e) Every decision or action which directly or indirectly puts the Group under commitment over 5% of its total assets of the latest annual financial statements prepared for Capital Market Board. (This sentence will expire when the Group's shares held by Turkish State decrease under 20%.)
• f) Decisions relating to merges and liquidation,
• g) Decisions cancelling flight routes or significantly reduce the frequency of flight routes, not including the ones that cannot even recover their operational expenses, subject to the market conditions.

18. SHAREHOLDERS' EQUITY (cont'd)

Restricted Profit Reserves

Turkish Commercial Code (TCC) stipulates that the general legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of the Group's paid-in share capital. Additionally, not limited with 20% of paid-in share capital, the general legal reserve is appropriated at the rate of 10% per annum of all cash dividends in excess of 5% of the paid-in share capital. Under TCC, the legal reserves can only be used to offset losses, to sustain business when conditions worsen, to prevent unemployment and are not available for any other usage unless they exceed 50% of paid-in share capital.

In accordance with Article 520 of the Turkish Commercial Code, the Group is required to allocate a reserve fund in an amount that covers the purchase value for its own shares purchased.

Foreign Currency Translation Differences

Currency translation differences under equity arise from Group's joint ventures, provisions for unused vacation, legal claims and retirement pay liability accounted under the equity method, which have functional currencies other than USD.

Distribution of Dividends

Listed companies distribute dividend in accordance with the Communiqué No. II-19.1 issued by the CMB, which is effective from 1 February 2014.

Companies distribute dividends in accordance with their dividend payment policies settled and dividend payment decision taken in general assembly in accordance with relevant legislations. The communiqué does not constitute a minimum dividend rate. Companies distribute dividend in accordance with their dividend policy or articles of associations. In addition, dividend can be distributed by fixed or variable installments and advance dividend can be paid in accordance with profit on the financial statements of the Group.

Actuarial Differences on Defined Benefit Plans

According to IAS 19, all actuarial differences are recognized in other comprehensive income.

Gains/Losses from Cash Flow Hedges

Hedge gain/losses against cash flow risk arise from the accounting of the changes in the fair values of effective derivative financial instruments designated against financial risks of future cash flows under equity. Total of deferred gain/loss arising from hedging against financial risk is accounted in profit or loss when the hedged item impacts profit or loss.

As of 2024, lease liabilities and investment borrowings in Japanese Yen, Swiss Franc and Euro for investment financing are designated as cash flow hedge against exchange rate risk due to highly probable future same foreign currency revenues. Group's revenue denominated in Euro and Swiss Franc fully covered borrowings of such foreign currency, while Japanese Yen revenue covered %88 of borrowings. In this context, exchange differences arising from such these loans repayment are taken to equity and recognized in other comprehensive income.

19. REVENUE

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
Breakdown of gross profit is as follows:
	1 January -	1 January -
	31 March 2024	31 March 2023
Passenger revenue
Scheduled	3,818	3,641
Unscheduled	6	7
Total passenger revenue	3,824	3,648
Cargo revenue
Carried by cargo aircraft	340	287
Carried by passenger aircraft	410	304
Total cargo revenue	750	591
Total passenger and cargo revenue	4,574	4,239
Technical revenue	144	107
Other revenue	51	7
Net sales	4,769	4,353
Cost of sales (-)	(4,245)	(3,705)
Gross profit	524	648
Breakdown of total passenger and cargo revenue by geographical locations is as follows:
	1 January - 31 March 2024	1 January - 31 March 2023
- Europe	1,255	1,200
- Asia and Far East	1,233	1,031
- Americas	970	877
- Middle East	414	477
- Africa	401	395
International flights	4,273	3,980
Domestic flights	301	259

Breakdown of total passenger and cargo revenue by geographical locations is as follows:
	31 March 2024	31 March 2023
- Europe	1,255	1,200
- Asia and Far East	1,233	1,031
- Americas	970	877
- Middle East	414	477
- Africa	401	395
International flights	4,273	3,980
Domestic flights	301	259

20. COST OF SALES

21. GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES

	4,245	3,705
	GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES
Breakdown of general administrative expenses is as follows:
Personnel	66	47
Depreciation and amortisation	17	17
IT and communication	5	6
Service	4	17
Systems use and associateship	4	1
Consultancy	2	2
Insurance	2	1
Taxes and duties	2	1
Utility	2	2
Rents	-	1
Other	4	3
	108	98

21. GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES
(cont'd) Breakdown of selling and marketing expenses is as follows:
	1 January -	1 January -
	31 March 2024	31 March 2023
Commissions and incentives	157	150
Personnel	117	100
Reservation systems	78	82
Advertisement and promotion	35	35
Taxes and duties	13	12
Call center	7	9
Service	6	6
Consultancy	5	3
Rents	3	2
IT and communication	2	2
Depreciation and amortisation	2	1
Systems use and associateship	2	2
Other	17	12
	444	416
OTHER OPERATING INCOME / EXPENSES
Breakdown of other operating income and expenses are as follows:
	1 January - 31 March 2024	1 January - 31 March 2023
Manufacturers' credits	32	29
Foreign exchange gains from
operational activities, gross	31	23
Insurance, indemnities, penalties income	21	60
Rent income	10	7
Non- interest income from banks	5	2
Delay interest income	2	-
Turnover premium from suppliers	2	6

22. OTHER OPERATING INCOME / EXPENSES

Rents	3	2
IT and communication	2	2
Depreciation and amortisation	2	1
Systems use and associateship	2	2
Other	17	12
OTHER OPERATING INCOME / EXPENSES
Breakdown of other operating income and expenses are as follows:
Manufacturers' credits	32	29
Foreign exchange gains from
Insurance, indemnities, penalties income	21	60
Rent income	10	7
Non- interest income from banks	5	2
Delay interest income	2	-
Turnover premium from suppliers	2	6
Reversal of ECL provision	1	-
Other	7	2
	111	129
	1 January -	1 January -
	31 March 2024	31 March 2023
Foreign exchange losses from
operational activities, gross	32	33
Provisions	4	5
Indemnity and penalty expenses	2	2
Rediscount interest expenses	1	-
Donations and aid	-	107
Adjustments for ECL provision	-	2

Insurance, indemnities, penalties income	21	60
Rent income	10	7
Non- interest income from banks	5	2
Delay interest income	2	-
Turnover premium from suppliers	2	6
Other	7	2
Foreign exchange losses from
Provisions	4	5
Indemnity and penalty expenses	2	2
Rediscount interest expenses	1	-
Donations and aid	-	107
Adjustments for ECL provision	-	2
Other	2	-
	41	149

23. INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES
Breakdown of income from investment activities is as follows:
	1 January -	1 January -
	31 March 2024	31 March 2023
Interest income from financial investment	241	75
Income from investment incentives Gain on sale of financial investments	51 17	49 16
Gain on sale of fixed assets	1	11
	310	151
Breakdown of expense from investment activities is as follows:
	1 January -	1 January -
	31 March 2024	31 March 2023
Loss on sale of financial investments	2	12
FINANCIAL INCOME/ EXPENSES
Breakdown of financial income is as follows:
	1 January -	1 January -
	31 March 2024	31 March 2023
Interest income Foreign exchange gains from financial	63	79
activities, gross	60	55
Fair value gains on derivative financial instruments, net	-	180

	1 January -	1 . anuarv -
	31 March 2024	31 March 2023
Loss on sale of financial investments		12

24. FINANCIAL INCOME/ EXPENSES

Interest income from financial investment	241	75
Income from investment incentives	51	49
Gain on sale of financial investments	17	16
Gain on sale of fixed assets	1	11
Breakdown of expense from investment activities is as follows:
FINANCIAL INCOME/ EXPENSES
Breakdown of financial income is as follows:
	1 January -	1 January -
	31 March 2024	31 March 2023
Interest income Foreign exchange gains from financial	63	79
activities, gross Fair value gains on derivative financial	60	55
instruments, net	-	180
Reversal of ECL provision	-	2
Other	72	41
	195	357
Breakdown of financial expenses is as follows:
	1 January -	1 January -
	31 March 2024	31 March 2023
Foreign exchange losses on financial
activities, gross (*)	149	188
Interest expense from leasing liabilities Fair value losses on derivative financial	126	81
instruments, net	61	-
Interest expenses on employee benefits Rediscount interest expense from	14	7

Breakdown of financial expenses is as follows:

Interest income	63	79
Foreign exchange gains from financial
Fair value gains on derivative financial
Reversal of ECL provision	-	2
Breakdown of financial expenses is as follows:
	31 March 2024	31 March 2023
Foreign exchange losses on financial
activities, gross (*)	149	188
Interest expense from leasing liabilities Fair value losses on derivative financial	126	81
instruments, net	61	-
Interest expenses on employee benefits	14	7
Rediscount interest expense from
repayments of aircraft	11	3
Interest expense from financial activities	8	34
Aircraft financing expenses	8	6
Other	2	3
	379	322

25. TAX ASSETS AND LIABILITIES

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
TAX ASSETS AND LIABILITIES
Tax liability and tax expense are as follows:
				31 March 2024		31 December 2023
Prepaid taxes				38		41
				31 March 2024		31 December 2023
Provisions for corporate tax Prepaid taxes and funds				53 (17)		59 (20)
Corporate tax liability				36		39
				1 January -		1 January -
				31 March 2024		31 March 2023
Current year tax expense				-		4
Deferred tax (income) / expense				(58)		39
Tax (income) / expense				(58)		43
Tax effect related to other comprehensive income is as follows:
		1 January - 31 March 2024			1 January - 31 March 2023
	Amount	Tax	Amount	Amount	Tax	Amount
	before tax	(expense) / income	after tax	before tax	(expense) / income	after tax
Change in cash flow
hedge reserve	284	(60)	224	88	(18)	70
Change in actuarial losses from retirement
pay obligation Changes in foreign	6	(1)	5	(3)	1	(2)

Corporate tax liability			36		39
				31 March 2024		31 March 2023
Current year tax expense				-		4
Tax (income) / expense				(58)	43
Tax effect related to other comprehensive income is as follows:
	1 January - 31 March 2024			1 January - 31 March 2023
		(expense) /			(expense) /
	before tax
Change in cash flow hedge reserve Change in actuarial	284	(60)	224	88	(18)	70
losses from retirement pay obligation Changes in foreign	6	(1)	5	(3)	1	(2)
currency translation difference	(6)	-	(6)	(9)	-	(9)
Losses on Remeasuring FVOCI Other comprehensive	(12)	3	(9)	5	(1)	4
income	272	(58)	214	81	(18)	63

Corporate Tax

With the "Law on Amendments to the Decree Law No. 375" published in the official gazette of the Republic of Türkiye dated July 15, 2023, the corporate tax rate has been increased from 20% to 25%, and the corporate tax rate is applied with a 5-point discount on the earnings of exporting institutions derived exclusively from exports. This rate has come into force to be applied to corporate earnings for accounting periods starting from January 1, 2023 and declarations that must be submitted as of October 1, 2023. The corporation tax rate is applied to net income of the companies after adjusting for certain disallowable expenses, exempt income and allowances. The corporation tax rate is applied to net income of the companies after adjusting for certain disallowable expenses, exempt income and allowances.

Turkish tax legislation does not permit a parent company and its subsidiaries to file a consolidated tax return. Therefore, tax liabilities, as reflected in these consolidated financial statements, have been calculated on a separate-entity basis.

25. TAX ASSETS AND LIABILITIES (cont'd)

Deferred Tax

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
TAX ASSETS AND LIABILITIES (cont'd)
Deferred Tax
The Group recognizes deferred tax assets and liabilities based upon temporary differences between its financial statements as reported for IFRS purposes and its statutory tax financial statements. These differences usually result in the recognition of revenue and expenses in different reporting periods for IFRS and tax purposes, which are given below.
In Türkiye, the companies cannot declare a consolidated tax return; therefore, subsidiaries with deferred tax assets were not netted off against subsidiaries with deferred tax liabilities position and they are disclosed separately.
Breakdown of the deferred tax assets / (liabilities) is as follows:
	31 March 2024	31 December 2023
Deferred tax asset	346	332
Deferred tax liability	(68)	(50)
Deferred tax asset	278	282
	31 March 2024	31 December 2023
Income and expense for future years	252	254
Accruals for expenses	210	135
Carry forward tax losses	189	230
Other receivables	95	59
Provisions for employee benefits	47	50
Miles accruals	37	34
Provisions for unused vacation	19	11
Lease liabilities (net) (*)	9	14
Change in fair value of derivative instruments	(96)	(77)
Adjustments for passenger flight liabilities	(160)	(144)
Fixed assets	(230)	(284)
Other	(94)	-
Deferred tax asset	278	282

(*) The related amount includes the effects of lease liabilities and right of use assets on deferred tax assets and liabilities.

25. TAX ASSETS AND LIABILITIES (cont'd)

Deferred Tax (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements
As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) TAX ASSETS AND LIABILITIES (cont'd)
Deferred Tax (cont'd)
The changes of deferred tax (asset) / liability for the period ended 1 January – 31 March 2024 and 2023 are as follows:
	1 January -	1 January -
	31 March 2024	31 March 2023
Opening balance at 1 January	(282)	2,218
Tax expense from hedging reserves	56	20
Foreign currency translation difference Tax income of actuarial losses on	8	5
retirement pay obligation	1	-
Tax (income) / expense from FVOCI	(3)	1
Deferred tax (income) / expense	(58)	39
Deferred tax (asset) / liability at the end of the period	(278)	2,283
Reconciliation with current tax income / (charge) for the period 1 January – 31 March 2024 and 2023 are as follows:
Reconciliation of effective tax charge	1 January - 31 March 2024	1 January - 31 March 2023
Profit from operations before tax	168	276
Tax calculated with the effective tax rate	(42)	(55)
Taxation effects on:
- exception	123	-
	67	-
- income from inflation differences

Opening balance at 1 January	(282)	2,218
Tax income of actuarial losses on
Reconciliation with current tax income / (charge) for the period 1 January – 31 March 2024 and 2023 are as follows:
Reconciliation of effective tax charge	31 March 2024	31 March 2023
Profit from operations before tax	168	276
Tax calculated with the effective tax rate	(42)	(55)
Taxation effects on:
- exception	123	-
- income from inflation differences	67	-
- income from investment certificates	13	10
- foreign currency translation difference	7	19
- investments accounted by using the equity method	1	(2)
- investment incentive	-	2
	(45)	(17)
- non deductible expenses
- effect of the change in the deferred tax rate	(66)	-

26. EARNINGS PER SHARE

Earnings per share disclosed in the consolidated profit or loss and other comprehensive income is determined by dividing the net income by the weighted average number of shares that have been outstanding during the relevant period.

In Türkiye, companies can increase their share capital by making a pro-rata distribution of shares ("bonus interest") to existing shareholders from retained earnings. For the purpose of earnings per share computations, such bonus shares are regarded as issued shares. Accordingly, the weighted average number of shares outstanding during the years has been adjusted in respect of bonus shares issued without a corresponding change in resources, by giving them retroactive effect for the period in which they were issued and for each earlier year.

26. EARNINGS PER SHARE (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
EARNINGS PER SHARE (cont'd)
Number of total shares and calculation of profits / losses per share at 1 January – 31 March 2024 and 2023:	1 January - 31 March 2024	1 January - 31 March 2023
Number of shares outstanding at 1 January (in full)	138,000,000,000	138,000,000,000
Number of shares outstanding at 31 December (in full)	137,995,202,955	137,997,767,199
Weighted average number of shares outstanding during the year (in full)	137,996,348,885	137,999,429,881
Net profit for the year	226	233
Basic earnings per share (Full US Cents) (*)	0.16	0.17
Diluted earnings per share (Full US Cents) (*)	0.16	0.17
(*) Basic and diluted earnings / (losses) per share are the same as there are no dilutive potential ordinary shares.
DERIVATIVE FINANCIAL INSTRUMENTS
Breakdown of derivative financial assets and liabilities of the Group as of 31 March 2024 and 2023 are as follows:
Derivative financial assets	31 March 2024	31 December 2023
Derivative instruments for fuel prices
cash flow hedge	36	4
Derivative instruments not subject to hedge	25	5
accounting

27. DERIVATIVE FINANCIAL INSTRUMENTS

Weighted average number of shares outstanding during
(*) Basic and diluted earnings / (losses) per share are the same as there are no dilutive potential ordinary shares.
DERIVATIVE FINANCIAL INSTRUMENTS
Breakdown of derivative financial assets and liabilities of the Group as of 31 March 2024 and 2023 are as follows:
Derivative financial assets	31 March 2024	31 December 2023
Derivative instruments for fuel prices
cash flow hedge	36	4
Derivative instruments not subject to hedge
accounting	25	5
Derivative instruments for interest rate	9	9
cash flow hedge
	70	18
Derivative financial liabilities	31 March 2024	31 December 2023
Derivative instruments not subject to hedge accounting	14	75
Derivative instruments for cross currency rate cash flow hedge	14	10
Derivative instruments for interest rate cash flow hedge	1	1
Derivative instruments for fuel prices	-	15
cash flow hedge	29	101

28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS

Foreign currency risk management

Foreign currency risk management Transactions in foreign currencies expose the Group to foreign currency risk. The foreign currency denominated assets and liabilities as monetary and non-monetary items are below: 31 March 2024 USD EQUIVALENT TL EUR JPY CHF OTHER 1.Trade Receivables 1,185 213 115 11 13 833 2a.Monetary Financial Assets () 4,962 1,163 3,642 77 6 74 2b.Non Monetary Financial Assets - - - - - - 3.Other 640 127 216 3 9 285 4.Current Assets (1+2+3) 6,787 1,503 3,973 91 28 1,192 5.Trade Receivables - - - - - - 6a.Monetary Financial Assets - - - - - - 6b.Non Monetary Financial Assets - - - - - - 7.Other 819 608 201 - - 10 8.Non Current Assets (5+6+7) 819 608 201 - - 10 9.Total Assets (4+8) 7,606 2,111 4,174 91 28 1,202 10.Trade Payables 980 662 265 5 2 46 11.Financial Liabilities () 2,704 2 2,364 314 24 - 12a.Other Liabilities, Monetary 876 493 289 4 4 86 12b.Other Liabilities, Non Monetary - - - - - - 13.Current Liabilities (10+11+12) 5,321 1,552 3,201 327 34 207 14.Trade Payables - - - - - - 15.Financial Liabilities () 7,735 52 6,037 1,592 54 - 16a.Other Liabilities, Monetary 213 213 - - - - 16b.Other Liabilities, Non Monetary - - - - - - 17.Non Current Liabilities (14+15+16) 7,948 265 6,037 1,592 54 - 18.Total Liabilities (13+17) 13,269 1,817 9,238 1,919 88 207 19.Net asset / liability position of off balance sheet derivatives (19a-19b) 3,685 - 3,685 - - - 19a.Off-balance sheet foreign currency derivative assets - - - - - - 19b.Off-balance sheet foreign currency derivative liabilities (3,685) - (3,685) - - 20.Net foreign currency (9,348) 294 (8,749) (1,828) (60) 995 asset/(liability) position (9-18-19) 21.Net foreign currency asset / liability position of monetary items (6,361) (46) (5,198) (1,827) (65) 775 (IFRS 7.B23) (=1+2a+5+6a-10-11-12a -14-15-16a) 22.Fair value of foreign currency hedged financial assets - - - - - -	NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS	As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	Notes to the Condensed Consolidated Interim Financial Statements
	23.Hedged foreign currency assets	-	-	-	-	-	-
24.Hedged foreign currency liabilities 8,451 - 6,468 1,906 77 -

(**) EUR amount equivalent to USD 3,066 represents the currency protected time deposit (31 December 2023: 3,540)

28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)

28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd) Foreign currency risk management (cont'd)
			31 December 2023
	USD
	EQUIVALENT	TL	EUR	JPY	CHF	OTHER
1.Trade Receivables 2a.Monetary Financial Assets	929 5,215	193 835	82 4,302	7 6	12 2	635 70
2b.Non Monetary Financial Assets	-	-	-	-	-	-
3.Other	655	227	174	1	6	247
4.Current Assets (1+2+3)	6,799	1,255	4,558	14	20	952
5.Trade Receivables	-	-	-	-	-	-
6a.Monetary Financial Assets	-	-	-	-	-	-
6b.Non Monetary Financial Assets	-	-	-	-	-	-
7.Other	833	613	210	-	-	10
8.Non Current Assets (5+6+7)	833	613	210	-	-	10
9.Total Assets (4+8)	7,632	1,868	4,768	14	20	962
10.Trade Payables	1,078	735	281	2	2	58
11.Financial Liabilities (*)	3,395	1	2,991	378	25	-
12a.Other Liabilities, Monetary	751	407	278	2	5	59
12b.Other Liabilities, Non Monetary	55	55	-	-	-	-
13.Current Liabilities (10+11+12)	5,279	1,198	3,550	382	32	117
14.Trade Payables	-	-	-	-	-	-
15.Financial Liabilities (*)	8,092	49	6,402	1,577	64	-
16a.Other Liabilities, Monetary	21	4	7	-	-	10
16b.Other Liabilities, Non Monetary	229	229	-	-	-	-
17.Non Current Liabilities (14+15+16)	8,342	282	6,409	1,577	64	10
18.Total Liabilities (13+17)	13,621	1,480	9,959	1,959	96	127
19.Net asset / liability position of off balance sheet derivatives (19a-19b)	4,175	-	4,175	-	-	-
19a.Off-balance sheet foreign currency
derivative assets	-	-	-	-	-	-
19b.Off-balance sheet foreign currency
derivative liabilities	(4,175)	-	(4,175)	-	-	-
20.Net foreign currency	(10,164)	388	(9,366)	(1,945)	(76)	835
asset/(liability) position (9-18-19)
21.Net foreign currency asset / liability position of monetary items (IFRS 7.B23)	(7,193)	(168)	(5,575)	(1,946)	(82)	578
(=1+2a+5+6a-10-11-12a-14-15-16a)
22.Fair value of foreign currency hedged
financial assets	-	-	-	-	-	-
23.Hedged foreign currency assets	-	-	-	-	-	-
24.Hedged foreign currency liabilities	8,124	-	6,544	1,491	89	-

28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)

Foreign currency risk management (cont'd)

The Group is exposed to foreign exchange risk primarily from TL, EURO, JPY and CHF. The following table details the Group's sensitivity to a 10% increase and decrease in TL, EURO, JPY and CHF against USD. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management and represents management's assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the Group where the denomination of the loan is in a currency other than the currency of the lender or the borrower. A positive number indicates an increase in profit or loss with a same effect on equity. The Group accounted investment loans and aircraft financial liabilities in scope of cash flow hedge accounting and foreign exchange income/expense arising from these loans and liabilities are recognized in equity. 10% increase and decrease effect of foreign exchange rates are calculated with the same method and the calculated foreign exchange gains/losses are presented as hedged portion in the foreign exchange sensitivity table. Furthermore, the hedged portion of foreign exchange gains/losses via forwards and cross currency swap transactions is classified as the amount hedged against USD in the statement of exchange rate sensitivity analysis.

and represents management's assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the Group where the denomination of the loan is in a currency other than the currency of the lender or the borrower. A positive number indicates an increase in profit or loss with a same effect on equity. The Group accounted investment loans and aircraft financial liabilities in scope of cash flow hedge accounting and foreign exchange income/expense arising from these loans and liabilities are recognized in equity. 10% increase and decrease effect of foreign exchange rates are calculated with the same method and the calculated foreign exchange gains/losses are presented as hedged portion in the foreign exchange sensitivity table. Furthermore, the hedged portion of foreign exchange gains/losses via forwards and cross currency swap transactions is classified as the amount hedged against USD in the statement of exchange rate sensitivity analysis.
		31 March 2024
	Profit / (Loss)
	Before Tax If foreign currency appreciated 10 %	If foreign currency depreciated 10 %	Equity If foreign currency appreciated 10 %	If foreign currency depreciated 10 %
1- TL net asset / liability	29	(29)		- -
2- Part hedged from TL risk (-)	-	-	-	-
3- TL net effect (1+2)	29	(29)		- -
4- Euro net asset / liability	(228)	228	(647)	647
5- Part hedged from Euro risk (-)	-	-	-	-
6- Euro net effect (4+5)	(228)	228	(647)	647
7- JPY net asset / liability	(32)	32	(151)	151
8- Part hedged from JPY risk (-)	-	-	-	-
9- JPY net effect (7+8)	(32)	32	(151)	151
10- CHF net asset / liability	2	(2)	(8)	8
11- Part hedged from CHF risk (-)	- 2	-	-	- 8
12- CHF net effect (10+11)		(2)	(8)
13- Other foreign currency net asset / liability 14- Part hedged other foreign currency risk (-)	100 -	(100) -	-	- - -
15- Other foreign currency net effect (13+14)	100	(100)		- -
TOTAL (3 + 6 + 9 + 12 + 15)	(129)	129	(806)	806

28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)

	As At And For the Three-Month Period Ended 31 March 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	Notes to the Condensed Consolidated Interim Financial Statements
28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)
Foreign currency risk management (cont'd)
	Profit / (Loss)	31 December 2023
	Before Tax If foreign currency appreciated 10 %	If foreign currency depreciated 10 %	Equity If foreign currency appreciated 10 %	If foreign currency depreciated 10 %
1- TL net asset / liability	39	(39)	-	-
2- Part hedged from TL risk (-)	-	-	-	-
3- TL net effect (1+2)	39	(39) 283		- -
4- Euro net asset / liability 5- Part hedged from Euro risk (-)	(283) -	-	(654) -	654 -
6- Euro net effect (4+5)	(283)	283	(654)	654
7- JPY net asset / liability	(29)	29	(165)	165
8- Part hedged from JPY risk (-)	-	-	-	-
9- JPY net effect (7+8)	(29)	29	(165)	165
10- CHF net asset / liability	1	(1)	(9)	9
11- Part hedged from CHF risk (-)	-	-	-	-
12- CHF net effect (10+11)	1	(1)	(9)	9
13- Other foreign currency net asset / liability 14- Part hedged other foreign currency risk (-)	84 -	(84) -	-	- - -
15- Other foreign currency net effect (13+14)	84	(84)		- -
TOTAL (3 + 6 + 9 + 12 + 15)	(188)	188	(828)	828

29. EVENTS AFTER THE BALANCE SHEET DATE