TÜRK HAVA YOLLARI A.O.

Annual Report • Feb 28, 2025

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

Consolidated Financial Statements for The Year Ended 31 December 2024 with Independent Auditor's Report

INDEPENDENT AUDITOR'S REPORT

To the Board of Directors of Türk Hava Yolları Anonim Ortaklığı

Our opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Türk Hava Yolları Anonim Ortaklığı (the "Company") and its subsidiaries (together the "Group") as at 31 December 2024, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards.

What we have audited

The Group's consolidated financial statements comprise:

• the consolidated statement of financial position as at 31 December 2024;
• the consolidated statement of comprehensive income for the year then ended;
• the consolidated statement of changes in equity for the year then ended;
• the consolidated statement of cash flows for the year then ended and
• the notes to the consolidated financial statements, comprising material accounting policy information.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing ("ISA"). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (including International Independence Standards) ("IESBA Code"). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. Key audit matters were addressed in the context of our independent audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

	Key audit matters	How our audit addressed the key audit matter
program	The recognition of the revenue, passenger flight liabilities and the frequent flyer liabilities
	Revenue and passenger flight liabilities (Please refer to Note 2.3.1, 13 and 25) The major part of the Group's revenue consists of the passenger revenue. The passenger revenue is recognized when the transportation service is completed. Total passenger revenue recognized in the consolidated financial statements of the Group amounted to USD18,444 million for the year ended 31 December 2024. Unused tickets are recognized as passenger flight liabilities, until the flights are completed. Total passenger flight liability for ticked sales amounted to USD2,352 million as of 31 December 2024.	The following procedures were performed to audit of the revenue and passenger flight liabilities: - Through involvement of our IT experts, we have tested the effectiveness of internal controls on IT systems that are designed to account passenger revenue. Additionally, we have tested accuracy and completeness of the reconciliations among IT systems which have been determined as key systems by us. - We have understood the business processes and controls over accounting of the passenger revenue.
	We focused on this area in our audit due to the following reasons:	- We have tested key controls over accounting of the passenger revenue processes.
- -	Significant estimates and judgments based on historical data and trends are used in calculation of revenue from unused tickets which are accounted for passenger revenue in the consolidated financial statements, Recognition of passenger revenue upon completion of the services includes complex and different integrated information technology ("IT") systems which processes	- We have tested unredeemed tickets through sampling method. - We have tested consistency and mathematical accuracy of the methods used in calculation of unused ticket revenue which are estimated based on historical data.
-	high volume of transactions and data, The necessity for our IT experts to be involved in the audit process due to the complexity of the systems.

Key audit matters	How our audit addressed the key audit matter
The recognition of the revenue, passenger flight liabilities and the frequent flyer program liabilities
Frequent flyer program liabilities (Please refer to Note 2.3.1 and 13) The Group provides a frequent flyer program named "Miles and Smiles" in the form of free travel award to its members on accumulated mileage earned from flights. Miles are recognized as a separately identifiable component of each sale transactions. Frequent flyer program liabilities amounted to USD307 million in the consolidated financial statements as of 31 December 2024. The amount deferred as a liability is measured based on the fair value of the awarded miles. The fair value is measured on the basis of the value of the awards for which they could be redeemed. The amount deferred is recognized as revenue when Miles and Smiles members fly using their miles or when the Group does not expect that the miles to be redeemed by its customers ("breakage"). We focused on this area in our audit due to the following reasons: - Breakage estimate ("the estimate of miles earned that will not be redeemed") are complex and highly judgmental due to the significant assumptions used in the estimate, - Complex calculations are performed in determination of the value of the awards for which they could be redeemed, - The necessity for our IT experts to be involved in the audit process due to the complexity of the systems.	The following procedures were performed to audit of the frequent flyer program liabilities: - We have understood the business processes and controls over accounting of the frequent flyer program liabilities. - Through involvement of our IT experts, we have tested the effectiveness of internal controls on IT systems and internal controls that are designed to account frequent flyer program liabilities. - We have tested consistency and mathematical accuracy of the methods used in calculation of frequent flyer liabilities which are estimated based on historical data. - We have controlled consistency of frequent flyer program liabilities calculated at the end of the reporting period with frequent flyer program. - We have controlled breakage estimates through comparing the ratio with the historical usage data.

Key audit matters	How our audit addressed the key audit matter
The Component accounting of aircrafts
(Please refer to Note 2.3.3, 2.3.4 and 15)
The carrying values of aircrafts' components accounted for property and equipment and right of	- The following procedures were performed to audit of the component accounting of
use assets amounted to USD20,585 million in the consolidated financial statements as of	aircrafts:
31 December 2024.	- We have inquired with the management to understand the accounting policies applied
The Group accounts for the cost of aircrafts which	and how they meet the provisions of IAS 16,
are acquired directly or through leases separating into the components (fuselage, engine, fuselage	"Property, plant and equipment".
overhaul and engine overhaul). Useful lives of these	- The useful life and residual value estimates
components are determined separately and each	were controlled by comparing the fleet plan
component are amortized during their useful lives.	of the Group and the contracts of the aircraft purchases and leasing transactions recently
We focused on this area in our audit due to the	made.
following reasons:
- The impacts to the consolidated financial statements as of 31 December 2024 is significant,	- We have compared the consistency of the components and their useful lives with the sectoral applications.
	- We have recalculated current year's
- The assessment of determination of components involves significant level of management's estimates,	depreciation expenses.
- The assessment of determination of useful
lives of each component and residual values
involves managements' significant estimates.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group's financial reporting process.

Auditor's responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISA, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the Group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.

Baki Erdal, SMMM Independent Auditor

Istanbul, 28 February 2025

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Consolidated Statement of Financial Position as at 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
ASSETS	Notes	31 December 2024	31 December 2023
Non-Current Assets
Financial Investments	6	1,113	398
Other Receivables
-Related Parties	8	12	-
-Third Parties	11	1,252	1,395
Investments Accounted for Using Equity Method	3	644	497
Investment Property	14	43	43
Property and Equipment	15	7,055	6,075
Right of Use Assets	15	17,625	16,928
Intangible Assets
- Other Intangible Assets	16	112	87
- Goodwill		27	27
Prepaid Expenses	13	1,696	1,294
Deferred Tax Asset	31	402	332
TOTAL NON-CURRENT ASSETS		29,981	27,076
Current Assets
Cash and Cash Equivalents	5	2,721	683
Financial Investments	6	3,346	5,344
Trade Receivables
-Related Parties	8	43	50
-Third Parties	9	862	806
Other Receivables
-Related Parties	8	9	9
-Third Parties	11	1,359	880
Derivative Financial Instruments	33	119	18
Inventories	12	671	418
Prepaid Expenses	13	302	237
Current Income Tax Assets	31	29	2
Other Current Assets	23	232	109
TOTAL CURRENT ASSETS		9,693	8,556
TOTAL ASSETS		39,674	35,632

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

Consolidated Statement of Financial Position as at 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)

LIABILITIES AND EQUITY Notes 31 December 2024 31 December 2023 Equity Share Capital 24 1,597 1,597 Treasury Shares 24 (39) (33) Items That Will Not Be Reclassified to Profit or Loss -Actuarial Losses on Retirement Pay Obligation 24 (284) (274) Items That Are or May Be Reclassified to Profit or Loss -Foreign Currency Translation Differences 24 (214) (221) -Fair Value Gains on Hedging Instruments Entered into for Cash Flow Hedges ²⁴ 620 281 -Gains on Remeasuring FVOCI 18 21 Restricted Profit Reserves 24 75 69 Previous Years Profit 14,112 8,097 Net Profit for the Year 3,425 6,021 Equity of the Parent 19,310 15,558 Non-Controlling Interests 4 5 TOTAL EQUITY 19,314 15,563 Non-Current Liabilities Long-Term Borrowings 7 33 472 Long-Term Lease Liabilities 7 and 17 10,139 10,052 Other Payables -Third Parties 11 32 25 Deferred Revenue 13 131 108 Long-Term Provisions -Provisions for Employee Termination Benefits 21 247 229 -Other Provisions 19 107 85 Deferred Tax Liability 31 65 50 TOTAL NON-CURRENT LIABILITIES 10,754 11,021 Current Liabilities Short-Term Borrowings 7 1,571 1,345 Short-Term Portion of Long-Term Borrowings 7 291 618 Short-Term Portion of Lease Liabilities 7 and 17 1,827 1,760 Trade Payables -Related Parties 8 293 285 -Third Parties 9 1,201 1,006 Payables Related to Employee Benefits 10 536 418 Other Payables -Related Parties 8 1 4 -Third Parties 11 315 238 Derivative Financial Instruments 33 37 101 Deferred Revenue 13 2,944 2,705 Short-Term Provisions -Provisions for Employee Benefits 19 101 50 -Other Provisions 19 14 6 Other Current Liabilities 23 475 512 TOTAL CURRENT LIABILITIES 9,606 9,048 TOTAL LIABILITIES AND EQUITY 39,674 35,632

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2024

For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	Consolidated Statement of Profit or Loss and Other Comprehensive Income	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
		1 January -	1 January -
PROFIT OR LOSS	Notes	31 December 2024	31 December 2023
Revenue	25	22,669	20,942
Cost of Sales (-)	26	(18,347)	(16,060)
GROSS PROFIT		4,322	4,882
General Administrative Expenses (-)	27	(564)	(449)
Selling and Marketing Expenses (-)	27	(1,838)	(1,760)
Other Operating Income	28	606	509
Other Operating Expenses (-)	28	(113)	(323)
OPERATING PROFIT BEFORE
INVESTMENT ACTIVITIES		2,413	2,859
Income from Investment Activities	29	1,668	933
Expenses for Investment Activities	29	(75)	(65)
Share of Investments' Profit Accounted
for Using The Equity Method	3	176	232
OPERATING PROFIT		4,182	3,959
Financial Income	30	991	611
Financial Expenses (-)	30	(1,528)	(931)
Monetary Gain		2	2
PROFIT BEFORE TAX		3,647	3,641
Tax (Expense)		(222)	2,380
Current Income Tax (Expense)	31	(387)	(66)
Deferred Tax Income	31	165	2,446
NET PROFIT FOR THE YEAR		3,425	6,021
OTHER COMPREHENSIVE INCOME
Items That May Be Reclassified Subsequently To Profit or Loss		343	(126)
Currency Translation Adjustment		7	73
(Losses) / Gains on Investments Remeasured FVOCI		(3)	35
Fair Value Gains / (Losses) on Hedging Instruments
Entered into for Cash Flow Hedges		421	(278)
Fair Value Gains / (Losses) Hedging Instruments of Investment Accounted by Using the Equity Method
Entered into for Cash Flow Hedges		15	(9)
Tax of Other Comprehensive (Expense) / Income		(97)	53
		(10)	(46)

OTHER COMPREHENSIVE INCOME

		(278)
		(9)
		53
		(46)
		(56)
		10
		(172)
		5,849
		4.36
32	2.48	4.36
	Items That Will Not Be Reclassified Subsequently To Profit or Loss OTHER COMPREHENSIVE INCOME / (EXPENSE) FOR THE YEAR TOTAL COMPREHENSIVE INCOME FOR THE YEAR 32	421 15 (97) (10) (12) 2 333 3,758 2.48

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

Consolidated Statement of Changes in Equity

For the Year Ended 31 December 2024

		For the Year Ended 31 December 2024	Consolidated Statement of Changes in Equity (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
			Items That Will Not Be Reclassified Subsequently To Profit or Loss		Items That May Be Reclassified Subsequently To Profit or Loss				Retained Earnings
	Share Capital	Treasury Shares	Actuarial Losses Retirement Pay Obligation	Foreign Currency Translation Differences	Fair Value Gains on Hedging Instruments Entered Into For Cash Flow Hedges	Gains on Remeasuring FVOCI	Restricted Profit Reserves	Previous Years Profit	Net Profit for The Year	Equity Holders of the Parent	Non controlling Interests	Total Equity
As of 1 January 2024	1,597	(33)	(274)	(221)	281	21	69	8,097	6,021	15,558	5	15,563
Transfers Total comprehensive income Increase through treasury share	- -	- -	- (10)	- 7	- 339	- (3)	6 -	6,015 -	(6,021) 3,425	- 3,758	- -	- 3,758
transactions Transactions with non controlling interests	- -	(6) -	- -	- -	- -	- -	- -	- -	- -	(6) -	- (1)	(6) (1)
As of 31 December 2024	1,597	(39)	(284)	(214)	620	18	75	14,112	3,425	19,310	4	19,314
			Items That Will Not Be Reclassified Subsequently To Profit or Loss		Items That May Be Reclassified Subsequently To Profit or Loss				Retained Earnings
	Share Capital	Treasury Shares	Actuarial Losses Retirement Pay Obligation	Foreign Currency Translation Differences	Fair Value Gains on Hedging Instruments Entered Into For Cash Flow Hedges	Losses on Remeasuring FVOCI	Restricted Profit Reserves	Previous Years Profit	Net Profit for The Year	Equity Holders of the Parent	Non controlling Interests	Total Equity
As of 1 January 2023	1,597	-	(228)	(294)	515	(14)	36	5,405	2,725	9,742	-	9,742
Transfers Total comprehensive income Increase through treasury share	- -	- -	- (46)	- 73	- (234)	- 35	33 -	2,692 -	(2,725) 6,021	- 5,849	- -	- 5,849
transactions Transactions with non	-	(33)	-	-	-	-	-	-	-	(33)	-	(33)
controlling interests As of 31 December 2023	- 1,597	-	-	-	-	-	-	- 8,097	- 6,021	- 15,558	5 5	5

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

Consolidated Statement of Cash Flows

For the Year Ended 31 December 2024

For the Year Ended 31 December 2024
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
Net Profit for the Year	Notes	31 December 2024 3,425	31 December 2023 6,021
Adjustments to Reconcile Profit
Adjustments for Depreciation and Amortisation Expense	15 and 16	2,203	2,035
Adjustments for Provisions Related to Employee Benefits	19 and 21	104	58
Adjustments for Other Provisions Adjustments for Doubtful Receivables	19 34	9	3
Adjustments for Interest Income	29 and 30	(2) (1,618)	1 (652)
Adjustments for Interest Expense	21 and 30	642	558
Adjustments for Unrealised Foreign Exchange Gains		(1,383)	(111)
Adjustments for Fair Value Losses / (Gains) on Derivative Financial Instruments		238	(189)
Adjustments for Fair Value Losses / (Gains)		73	(73)
Adjustments for Undistributed Gains of Associates	3	(176)	(232)
Adjustments for Tax Expense / (Income)	31	222	(2,410)
Adjustments for Losses Arised from Sale of Property, Plants and Equipments	29	24	27
Adjustments for Losses Arised from Sale of Other Non-Current Assets	15	85	46
Operating Profit Before Changes in Working Capital		3,846	5,082
Decrease/(Increase) in Trade Receivables from Related Parties (Increase)/Decrease in Trade Receivables from Third Parties	8 9 and 34	7	(19)
(Increase)/Decrease in Other Receivables from Related Parties	8	(55) (12)	154 4
Decrease/(Increase) in Other Receivables from Third Parties	11	261	(450)
Increase in Inventories Increase in Prepaid Expenses	12 13	(253) (467)	(49) (441)
Increase in Trade Payables to Related Parties	8	8	15
Increase in Trade Payables to Third Parties	9	195	76
Increase in Payables Due to
Employee Benefits Decrease in Other Payables to Related Parties	10 8	118 (3)	235 (9)
Increase in Other Payables to Third Parties	11 and 31	138	127
Increase in Deferred Income Increase in Other Assets	23	235	509
Cash Flows From Operations		(123) 3,895	(43) 5,191
Payments for Provisions Related with Employee Benefits	21	(28)	(13)
Income Taxes (Paid) / Received	31	(27)	6
Net Cash From Operating Activities		3,840	5,184
CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES
Proceeds From Sales of Property, Plant and Equipment and Intangible Assets	15 and 29	36	56
Payments For Purchasing of Property, Plant and Equipment and Intangible
Assets		(1,282)	(1,242)
Proceeds / (Payments) For Sales and Purchasing of Other Financial Assets Other Cash Advances		1,210 (752)	(4,878) (181)
Dividends Received	3	42	47
Interest Received	5 and 29	1,133	490
Net Cash Flows Used In Investing Activities CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES		387	(5,708)
Payments to Acquire Entity's Own Shares		(6)	(33)
Proceeds From Loans	7	2,779	2,494
Repayments of Loans Payments of Lease Liabilities	7 7	(3,190) (1,873)	(3,436) (1,667)
Interest Paid	7	(384)	(388)
Interest Received	30	326	174
Net Cash Used in Financing Activities		(2,348)	(2,856)
Net Change in Cash and Cash Equivalents CASH AND CASH EQUIVALENTS		1,879	(3,380)
AT THE BEGINNING OF THE YEAR		677	4,057
CASH AND CASH EQUIVALENTS
AT THE END OF THE YEAR	5	2,556	677

1. GROUP ORGANIZATION AND ITS OPERATIONS

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 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 December 2024, and 2023, the shareholders and their respective shareholdings in the Company are as follows:
	31 December 2024	31 December 2023
Türkiye Wealth Fund	49.12 %	49.12 %
Republic of Türkiye Ministry of Treasury and
Finance Privatization Administration Other (publicly held and tresuary share)	- 50.88 %	- 50.88 %

The Company 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 publicly traded on Borsa İstanbul ("BIST") since 1990. The Company and its subsidiaries will be referred to as "Group".

The number of employees working for the Group as of 31 December 2024 is 63,455 (31 December 2023: 55,884). The average number of employees working for the Group for the year ended 31 December 2024 and 2023 are 60,135 and 51,753 respectively.

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

Subsidiaries and Joint Ventures

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
GROUP ORGANIZATION AND ITS OPERATIONS (cont'd)
Subsidiaries and Joint Ventures
The table below sets out the consolidated subsidiaries of the Group as of 31 December 2024, and 2023:
Name of the Company	Principal Activity	31 December 2024	Ownership Rate 31 December 2023	Country of Registration
THY Teknik A.Ş. (Turkish Technic)	Aircraft Maintenance 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 and Courier 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 Elektronik Para ve Ödeme Sistemleri A.Ş. (TKPAY)	Payment Services	100%	100%	Türkiye
THY Ortak Sağlık ve Güvenlik Birimi Hizmetleri A.Ş. (*)	Occupational Health and Safety Services	100%	-	Türkiye
THY Gayrimenkul Yatırım Hizmetleri A.Ş. (**)	Real Estate Investment Services	100%	-	Türkiye
THY Spor A.Ş. (***)	Sports Activities	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

(**) THY Gayrimenkul Yatırım Hizmetleri A.Ş. was established on 24 July 2024 to manage various projects other than aviation investment projects to the Group. The Company develops real estate projects together with Emlak Konut Gayrimenkul Yatırım Ortaklığı A.Ş. with 50% shareholding.

(***) THY Spor A.Ş. was established on 20 August 2024 to carrying out all or part of the sports activities carried out under the Turkish Airlines Sports Club.

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 Consolidated Financial Statements For the Year Ended 31 December 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 December 2024, and 2023:
			Ownership Share and Voting Power	Registration and
Company Name	Principal Activity	31 December 2024	31 December 2023	Operations
Güneş Ekspres Havacılık A.Ş. (Sun Express)	Air Transportation	50%	50%	Türkiye
THY DO&CO İkram Hizmetleri A.Ş. (Turkish DO&CO)	Catering Services	50%	50%	Türkiye
TGS Yer Hizmetleri A.Ş. (TGS)	Ground Services	50%	50%	Türkiye
THY OPET Havacılık Yakıtları A.Ş. (THY Opet)	Aviation Fuel Services	50%	50%	Türkiye
P&W T.T. Uçak Bakım Merkezi Ltd. Şti. (TEC)	Maintenance Services	49%	49%	Türkiye
Air Albania SHPK (Air Albania)	Aircraft Transportation	49%	49%	Albania
We World Express Ltd. (We World Express)	Cargo and Courier Transportation	45%	45%	Hong Kong
Goodrich Thy Teknik Servis Merkezi Ltd. Şti. (TNC) (Goodrich)	Maintenance Services	40%	40%	Türkiye
TFS Akaryakıt Hizmetleri A.Ş. (TFS Akaryakıt)	Aviation Fuel Services	25%	25%	Türkiye

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.

2.1 Basis of Presentation

Statement of Compliance

Basis of Preparation

Functional and Reporting Currency

Functional currency

Statement of Compliance
The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by International Accounting Standards Board (IASB).
The Board of Directors has approved the consolidated financial statements as of 31 December 2024 on 27 February 2025.
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 paid 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
Turkish Technology	TL
Widect	USD
TSS	TL
THY Özel Güvenlik ve Koruma Hizmetleri A.Ş.	TL
AJET	USD
TKPAY	TL
THY Ortak Sağlık ve Güvenlik Birimi Hizmetleri A.Ş.	TL
THY Gayrimenkul Yatırım Hizmetleri A.Ş.	TL
THY Spor A.Ş.	TL
TCI	USD

Although the currency of the country in which the Company is registered 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 December 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. In terms of IAS 29 it is required 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 comparative 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 Türkiye 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 December 2024 2,684.55 1.00000 291% 31 December 2023 1,859.38 1.44379 268% 31 December 2022 1,128.45 2.37897 156%

Date	Index	Adjustment Factor	Three Year Compound Inflation Rate
31 December 2024	2.684.55	1.00000	291%
31 December 2023	1.859.38	1.44379	268%
31 December 2022	1.128.45	2.37897	156%

IAS 29 is applicable for the subsidiaries whose functional currencies are TL. These subsidiaries are Turkish Technology, TSS, THY Özel Güvenlik ve Koruma Hizmetleri A.Ş., TKPAY, THY Ortak Sağlık ve Güvenlik Birimi Hizmetleri A.Ş., THY Gayrimenkul Yatırım Hizmetleri A.Ş., and THY Spor A.Ş.

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.
• 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 December 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.

2.1 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 year ended 31 December 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

2.3.1 Revenue

Group recognizes revenue when the goods or services is transferred to the customer and when performance obligation is fulfilled. Goods is counted to be transferred when the control belongs to the customer.

Group recognizes revenue based on the following main principles:

• (a) Identification of customer contracts,
• (b) Identification of performance obligations,
• (c) Determination of transaction price in the contract,
• (d) Allocation of price to performance obligations,
• (e) Recognition of revenue when the performance obligations are fulfilled.

Group recognized revenue from its customers only when all of the following criteria are met:

(a) The parties to the contract have approved the contract (in writing, orally or in accordance with other customary business practices) and are committed to perform their respective obligations,

• (b) Group can identify each party's rights regarding the goods or services to be transferred,
• (c) Group can identify the payment terms for the goods or services to be transferred;

(d) The contract has commercial substance,

(e) It is probable that Group will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. In evaluating whether collectability of an amount of consideration is probable, an entity shall consider only the customer's ability and intention to pay that amount of consideration when it is due.

Rendering of services:

Revenue is measured at the fair value of the consideration received or to be received. Passenger fares and cargo revenues are recognized as operating revenue when the transportation service is provided. Tickets sold but not used (unflown) yet are recognized as passenger flight liabilities in deferred income as a contract liability in accordance with IFRS 15 Revenue from Contracts with Customers.

The Group uses estimates based on historical statistics and data for unredeemed tickets. Total estimated amount of unredeemed tickets are recognized as revenue. Agency commissions relating to the passenger revenue are recognized as expense when the transportation service is provided.

Aircraft maintenance and infrastructure support services are recognized on accrual basis at the fair value of the amount collected or to be collected based on the assumptions that delivery is realized, the income can be reliably determined and the inflow of the economic benefits related with the transaction to the Group is probable.

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

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.1 Revenue (cont'd)

Rendering of services (cont'd):

a) Expired Ticket Revenue

Tickets for which the passenger is not expected to exercise their rights under the ticket contract with the Group will expire. Tickets that expire unused represent unexercised passenger rights and are often referred to as passenger ticket breakage. The Group recognizes breakage (or unexercised rights) as revenue. Since the break date of these specific tickets can not be identified ultimately, the Group estimates and recognizes the expected breakage amount by using historical data and trends. The data used for the estimation for the amount of unredeemed tickets is revised under the IFRS 15 and provisional ticket breakage revenue is calculated with the tickets not flown on their scheduled flight date.

b) Ticket Reissue Revenue

Each fare types provided by the Group have its own conditions attached, which may include it being restricted, upgradeable or refundable. A change fee may apply if passengers need to make a change to their booking, cancel flights or buy replacement tickets. The change service is not considered distinctly because the customer cannot benefit from it without taking the flight. Although the change service is provided in advance of the flight, the benefit from it is not provided until the customer takes the flight. As a result, the change fee is recognized as revenue together with the original ticket sale on the date of travel.

Frequent Flyer Program

The Group provides a frequent flyer program (FFP) named "Miles and Smiles" in the form of free travel award to its members on accumulated mileage. Miles earned by flights are recognized as a separately identifiable component of the revenue.

The amount deferred as a liability is measured based on the fair value of the awarded miles. The fair value is measured on the basis of the value of the awards for which they could be redeemed. The amount deferred is recognized as revenue on redemption of the points including a portion of the points that the Group does not expect to be redeemed by the customers ("breakage").

The Group also sells mileage credits to participating partners in "Miles and Smiles" program. Revenue is recognized when transportation is provided.

2.3.2 Inventories

Inventories consist of non-repairable spare parts, consumables, real estates, and supplies such as flight equipment and purchased merchandises.

Inventories are valued at the lower of cost and net realizable value. The cost of inventories consist of costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Average cost method is applied in the calculation of cost of inventories. Net realizable value represents the estimated selling price less all estimated costs of completion and costs necessary to make a sale.

The real estate projects under development and construction comprise the direct and indirect costs attributable to the projects.

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.3 Property and Equipment

Property and equipment are carried at cost less accumulated depreciation and any accumulated impairment losses.

Assets under construction are carried at their costs. Legal fees are also included in cost. Borrowing costs are capitalized for assets that need substantial time to prepare the asset for its intended use or sale. As the similar depreciation method used for other fixed assets, depreciation of such assets begins when they are ready to use.

Property and equipment other than land and properties under construction depreciated over their estimated useful lives, using the straight-line method. Expected useful life, residual value and depreciation method are reviewed each year for the possible effects of changes in estimates, and they are recognized prospectively if there are any changes in estimates.

The Group allocates the cost of assets that are acquired directly or through finance leases into the following parts, by considering the renewal of significant parts of the aircrafts identified during the overhaul maintenance and overhaul of aircraft fuselage and engine; fuselage, overhaul maintenance for the fuselage, engine and overhaul maintenance for the engines. Overhaul maintenance for the fuselage and overhaul engine repair parts are depreciated over the shorter of the remaining period to the next maintenance or the remaining period of the aircraft's useful life.

The gain or loss arising from the disposal or retirement of an item of property and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

The useful lives and residual values used for property and equipment are as follows:

	Useful Life (Years)	Residual Value
- Buildings	50	-
- Aircrafts and Engines	25	10%
- Cargo Aircraft and Engines	25	10%
- Overhaul Maintenance for Airframe	6	-
- Overhaul Maintenance for Engines	3-8	-
- Overhaul Maintenance for Spare Engines	3-13	-
- Components	3-18	-
- Repairable Spare Parts	3-7	-
- Simulators	25	10%
- Machinery and Equipment	3-20	-
- Furniture and Fixtures	3-15	-
- Motor Vehicles	4-15	-
- Other Equipment	4-15	-
- Leasehold Improvements	Lease period/5 years	-

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.4 Leases

At inception of a contract, the Group assesses whether a contract is, or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset. The Group assess whether:

a) The contract involved the use of an identified asset – this may be specified explicitly or implicitly.

b) The asset should be physically distinct or represent substantially all of the capacity of a physically distinct asset, If the supplier has a substantive substitution right, the asset is not identified.

c) The Group has the right to obtain substantially all of the economic benefits from the use of an asset throughout the period of use; and

d) The Group has the right to direct use of the asset, The Group concludes to have the right of use, when it is predetermined how and for what purpose the Group will use the asset. The Group has the right to direct use of asset if either:

i. The Group has the right to operate (or to have the right to direct others to operate) the asset over its useful life and the lessor does not have the rights to change the terms to operate or;

ii. The Group designed the asset (or the specific features) in a way that predetermines how and for what purpose it is used.

At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

Right of use asset

The right of use asset is initially recognized at cost comprising of:

a) Amount of the initial measurement of the lease liability;

b) Any lease payments made at or before the commencement date, less any lease incentives received;

c) Any initial direct costs incurred by the Group; and

d) An estimate of costs to be incurred by the lessee for restoring the underlying asset to the condition required by the terms and conditions of the lease (unless those costs are incurred to produce inventories).

The Group re-measure the right of use asset:

a) After netting-off depreciation and reducing impairment losses from right of use asset.

b) Adjusted for certain re-measurements of the lease liability recognized at the present value.

The Group applies IAS16 "Property, Plant and Equipment" to amortize the right of use asset and to asses for any impairment.

The Group applies IAS 36, "Impairment of Assets" to determine whether a right-of-use asset is impaired and to recognize any impairment loss.

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

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.4 Leases (cont'd)

Aircraft;

For operating lease agreements of aircrafts, the lease term corresponds to the non-cancellable duration of the agreements signed except in cases where the Group is reasonably certain of exercising either an extension option or an early termination option which is included in the agreement. IFRS 16 requires including maintenance costs in the right of use asset. According to that, the Group decides whether the maintenance cost is capitalized to the right of use asset by analyzing whether the maintenance cost is avoidable or unavoidable. The Group is obliged to return leased aircraft and their engines according to the redelivery condition which is set in the lease agreement. The Group needs to either maintain the aircraft so that it meets the agreed redelivery condition or settle the difference in cash to the lessor if the condition of the aircraft and its engines differs from the agreed redelivery condition. Maintenance costs can be divided into two groups; costs that incur independent of the usage of the aircraft / leasing period and costs that incur dependent on the usage of the aircraft / leasing period. Costs depending on the usage of the aircraft are not included as part of the right of use asset cost.

Real estate and other leases;

For lease agreements, the lease term corresponds to the non-cancellable duration of the agreements signed except in cases where the Group is reasonably certain of exercising either an extension option or an early termination option which is included in the agreement. Lease liabilities are discounted to present value by using the Group's incremental borrowing rates for each currency. Service agreements which relate to the usage of airports and terminals do not qualify as lease arrangements under IFRS 16. Lease agreements in which the lessor has the right to substitute the leased area with another area, do not qualify as lease contract under IFRS 16. As an exception to this, there are specific lounge areas which are dedicated for the use of the Group and therefore, these are included in the lease agreements.

Lease Liability

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. Lease liabilities are discounted to present value by using the interest rate implicit in the lease if readily determined or with the Group's incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise the following:

a) Fixed payments, including in-substance fixed payments;

b) Variable lease payments that depend on an index or a rate, initially measured using the index or rate as the commencement date.

c) The exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewable period if the Group is reasonably certain to exercise an extension option. and penalties for early termination of a lease unless the Group is reasonably certain to terminate early.

After initial recognition, the lease liability is measured:

a) Increasing the carrying amount to reflect interest on lease liability,

b) Reducing the carrying amount to reflect the lease payments made and

c) Remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments.

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

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.4 Leases (cont'd)

Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.

2.3.5 Intangible Assets

Intangible assets include rights, information systems and software. Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. Rights and other intangible assets are depreciated over their useful life of 3 and 5 years, on a straight-line basis. Slot rights are assessed as intangible assets with indefinite useful life, as there are no time restrictions on them.

Goodwill

Goodwill that arises upon acquisition of subsidiaries is presented in intangible assets. Goodwill is measured at cost less accumulated impairment losses.

2.3.6 Impairment on Assets

The carrying amounts of the Group's assets are reviewed at each reporting date and (for assets with indefinite useful lives, whenever there is an indication of impairment) to determine whether there is any indication of impairment. If any such indication exists then the assets' recoverable amounts are estimated. An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. Value in use is the present value of estimated future cash flows resulting from continuing use of an asset and from disposal at the end of its useful life. Impairment losses are accounted in profit or loss.

An impairment loss recognized in prior periods for an asset is reversed if the subsequent increase in the asset's recoverable amount is caused by a specific event since the last impairment loss was recognized. Such a reversal amount is recognized as income in the consolidated financial statements and cannot exceed the previously recognized impairment loss and shall not exceed the carrying amount that would have been determined, net of amortization or depreciation, had no impairment loss been recognized for the asset in prior years.

Group considers aircrafts, spare engines and simulators together ("Aircrafts") as cash generating unit subject to impairment and impairment calculation was performed for Aircrafts collectively. In the examination of whether net book values of aircrafts, spare engines and simulators exceed their recoverable amounts, the higher value between value in use and sale expenses deducted net selling prices in USD is used for determination of recoverable amounts. Net selling price for the aircrafts is determined according to second hand prices in international price guides. The differences between net book values of these assets and recoverable amounts are recognized as impairment gains or losses under income and expenses from operating activities.

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

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.7 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

2.3.8 Financial Instruments

(a) Financial assets

Financial assets and liabilities are recognized in the consolidated financial statements when the Group is a legal party to these financial instruments. Financial investments are recognized on a trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value.

The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in such derecognized financial assets that is created or retained by the Group is recognized as a separate asset or liability.

Investments are recorded or deleted from records on the date of trading activity based on an agreement providing a requirement for investment instrument delivery in compliance with the duration determined by related market.

A financial asset is classified as measured at: amortized cost; fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL (fair value through profit or loss). The classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the hybrid financial instrument as a whole is assessed for classification.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.8 Financial Instruments (cont'd)

(a) Financial assets (cont'd)

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment's fair value in OCI. This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized for the FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized for the at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition.

Financial assets at	These assets are subsequently measured at fair value. Net gains and losses,
FVTPL	including any interest or dividend income, are recognized in profit or loss.
Financial assets at amortized cost	These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
Debt investments at	These assets are subsequently measured at fair value. Interest income
FVOCI	calculated using the effective interest method, foreign exchange gains and
	losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
Equity investments at	These assets are subsequently measured at fair value. Dividends are
FVOCI	recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.

The following accounting policies apply to the subsequent measurement of financial assets.

The corporate debt securities are held by the Group's treasury unit in a separate portfolio to provide interest income, but may be sold to meet liquidity requirements arising in the normal course of business. The Group considers that these securities are held within a business model whose objective is achieved both by collecting contractual cash flows and by selling securities. The corporate debt securities mature in one to two years and the contractual terms of these financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. These assets have therefore been classified as financial assets at FVOCI under IFRS 9. The fair value differences of government debt securities and corporate debt securities are classified into financial assets recognized in other comprehensive income.

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

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.8 Financial Instruments (cont'd)

(a) Financial assets (cont'd)

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and other short-term highly liquid investments with their maturities equal or less than three months from date of acquisition that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. The carrying amount of these assets approximates their fair value.

Loans and receivables

Trade, loan and other receivables are initially recorded at fair value. At subsequent periods, loans and receivables are measured at amortized cost using the effective interest method.

Impairment of Financial Assets

Expected credit loss model (ECL) are applied to financial assets measured at amortized cost, contract assets and debt investments at FVOCI, but not to investments in equity instruments.

The financial assets at amortized cost consist of trade receivables and cash and cash equivalents.

The Group measures loss allowances at an amount equal to lifetime ECLs. The Group has elected to measure loss allowances for trade receivables and contract assets at an amount equal to lifetime ECLs. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group's historical experience and informed credit assessment and including forward-looking information. The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

The Group considers a financial asset to be in default when:

• the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as realizing security (if any is held).

The Group considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of 'investment grade'. The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

Measurement of ECLs

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive).

ECLs are discounted at the effective interest rate of the financial asset.

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

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.8 Financial Instruments (cont'd)

(a) Financial assets (cont'd)

Credit-impaired financial assets

At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Presentation of impairment

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

For debt securities at FVOCI, the loss allowance is recognized in OCI, instead of reducing the carrying amount of the asset.

(b) Financial liabilities

The Group's financial liabilities and equity instruments are classified in accordance with the contractual arrangements and recognition principles of a financial liability and equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The significant accounting policies for financial liabilities and equity instruments are described below.

Financial liabilities are classified as either financial liabilities at fair value through profit and loss or other financial liabilities.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss are initially measured at fair value, and at each reporting period revalued at fair value as of balance sheet date. Changes in fair value are recognized in profit and loss.

Other financial liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortized cost using the effective interest method, with interest expense recognized on an effective yield basis. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

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

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.8 Financial Instruments (cont'd)

(b) Financial liabilities (cont'd)

Derivative financial instruments and hedge accounting

The Group uses various derivative financial instruments such as currency forwards, currency options, interest rate options, oil options and oil swaps are used to protect against currency, fuel price and interest rate risks arising from its ordinary business activities in accordance with IFRS 9.

The Group applies hedge accounting to these transactions, as they are designated to hedge against cash flow risks arising from fluctuations in interest rates. The major source of interest rate risk is finance lease liabilities. In order to keep interest costs at an affordable level, the Group has hedged a part of floating rate USD, JPY and Euro denominated liabilities arising from financial lease liabilities. Effective part of the change in the fair values of those derivative instruments for cash flows risks of floating-rate finance lease liabilities are recognized in other comprehensive income and presented in cash flow hedge reserve under the shareholders' equity, in accordance with hedge accounting.

In order to keep the impact of changes in fuel prices on cash flow and profitability at a reasonable and manageable level, hedging transactions can be made with a maximum maturity of the next 24 months and with a maximum amount of 60% of the next month's projected fuel consumption. Premium or nonpremium derivative instruments based on swaps and options can be used in related transactions.

In order to manage this risk resulted from the fluctuations of the FX market, the Group started to implement exchange rate risk hedging. Since the Group is short position in JPY, strategy mainly aims to decrease the amount of short position in JPY with the long position in USD via the derivative instruments. Derivative instruments can be used in accordance with market conditions, especially the zero cost swap structures.

Since 2018 The Group, financial lease liabilities for investment financing are designated as cash flow hedge against exchange rate risk due to highly probable future same foreign currency revenues.

Use of derivative financial instruments is managed according to the Group policy approved by the Board of Directors and compliant with the risk management strategy.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. At that time, for forecast transactions, any cumulative gain or loss on the hedging instrument recognized in equity is retained in equity until the forecasted transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in equity is transferred to profit or loss for the period.

Derivative financial instruments are calculated according to the fair value at contract date and again are calculated in the following reporting period at fair value base. The effective portions of changes in the fair value of derivatives which are designated as cash flow hedge are recognized in other comprehensive income. Any ineffective portion of changes in the fair value of the derivatives is recognized in profit or loss.

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.9 Foreign Currency Transactions

Transactions in foreign currencies are translated into US Dollar at the exchange rates prevailing at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate prevailing at the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated the rates prevailing at the date when fair value determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Gains and losses arising on settlement and translation of foreign currency items are included in profit or loss.

2.3.10 Earnings per Share

Earnings per share are calculated by dividing net profit by weighted average number of shares outstanding in the relevant period. In Türkiye, companies are allowed to increase their capital by distributing free shares to shareholders from accumulated profits. In calculation of earnings per share, such free shares are considered as issued shares. Therefore, weighted average number of shares in the calculation of earnings per share is found by applying distribution of free shares retrospectively.

2.3.11 Events After the Reporting Date

Events after the balance sheet date are those events, which occur between the balance sheet date and the date when the consolidated financial statements are authorized for issue.

If adjustment is necessary for such events, the Group's consolidated financial statements are adjusted to reflect such events.

2.3.12 Provisions, Contingent Liabilities, Contingent Assets

Provisions are recognized when the Group has a present obligation as a result of a past event, and it is probable that the Group will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.

Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

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

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.12 Provisions, Contingent Liabilities, Contingent Assets (cont'd)

Onerous Contracts

Present liabilities arising from onerous contracts are calculated and accounted for as provision. It is assumed that an onerous contract exists if Group has a contract which unavoidable costs to be incurred to settle obligations of the contract exceed the expected economic benefits of the contract.

2.3.13 Segmental Information

There are two main operating segments of the Group, air transportation and aircraft technical maintenance operations; these include information for determination of performance evaluation and allocation of resources by the management. The Group management uses the operating profit calculated according to IFRS while evaluating the performance of the segments.

2.3.14 Investment Property

Investment properties are held to obtain rent and/or appreciation revenue and reflect the amounts remaining after accumulated depreciation and any accumulated impairment are deducted from cost. The cost of change in any part of the existing investment property is included in the amount in the balance sheet if it complies with the accepted criteria.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from disposal. Any gain or loss arising on derecognition of the property is included in consolidated profit or loss in the period in which the property is derecognized.

2.3.15 Taxation and Deferred Tax

Turkish tax legislation does not permit a parent company and its subsidiary to file a consolidated tax return. Therefore, provisions for taxes, as reflected in the accompanying consolidated financial statements, have been calculated on a separate-entity basis.

Income tax expense represents the sum of the current tax and deferred tax expenses.

Current tax

The current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of profit or loss and other comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.15 Taxation and Deferred Tax (cont'd)

Deferred Tax

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases which is used in the computation of taxable profit, and is accounted for using the balance sheet liability method.

Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and affiliates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

Current and deferred tax for the year

Current and deferred tax is recognized as income or expense in the consolidated statement of profit or loss, except to the extent that it relates to items recognized directly in equity or other comprehensive income, or where they arise from the initial accounting for a business combination. In the case of a business combination, the tax effect is taken into account in calculating goodwill or determining the excess of the acquirer's interest in the net fair value of the acquirer's identifiable assets, liabilities and contingent liabilities over cost.

2.3.16 Government Grants

Government grants are not recognized until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes as expenses the related costs for which the grants are intended to compensate.

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.16 Government Grants (cont'd)

Specifically, government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognized profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they become receivable.

2.3.17 Employee Benefits / Retirement Pay Provision

Under Turkish law and union agreements, lump sum payments are made to employees retiring or involuntarily leaving the Group. Such payments are considered as being part of defined retirement benefit plan as per International Accounting Standard 19 (revised) "Employee Benefits" ("IAS 19").

The retirement benefit obligation recognized in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognized actuarial gains and losses. Actuarial gains and losses are accounted as other comprehensive income.

2.3.18 Maintenance and Repair Cost

Regular maintenance and repair costs for owned and leased assets are charged to cost of sales as incurred. Aircraft and engine overhaul maintenance checks for owned and leased aircrafts are capitalized and depreciated over the shorter of the remaining period to the following overhaul maintenance checks or the remaining useful life of the aircraft. For aircraft held under operating leases the Group is contractually committed to either return the aircraft in a certain condition or to compensate the lessor upon return of the aircraft. The estimated airframes and engine maintenance costs are accrued and charges to profit or loss over the lease term, based on the present value of the estimated future cost of the major airframe overhaul, engine maintenance calculated by reference to hours or order operated during the year.

2.3.19 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

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

2.3 Summary of Significant Accounting Policies (cont'd)

2.3.20 Related Parties

Parties are considered related to the Company if;

• (a) A person or a close member of that person's family is related to a reporting entity if that person:
• (i) has control or joint control over the reporting entity;
• (ii) has significant influence over the reporting entity; or
• (iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

(b) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).

• (i) One entity and the reporting entity are member of the same group.
• (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).
• (iii) Both entities are joint ventures of the same third party.
• (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
• (v) The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.
• (vi) The entity is controlled or jointly controlled by a person identified in (a).
• (vii) A person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is charged.

2.4 Critical Accounting Estimates and Judgements

Preparation of the financial statements requires the amounts of assets and liabilities being reported, explanations of contingent liabilities and assets and the uses of accounting estimates and assumptions which would affect revenue and expense accounts reported during the accounting period. Group makes estimates and assumptions about the future periods. Actual results could differ from those estimations.

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

2.4 Critical Accounting Estimates and Judgements (cont'd)

Accounting estimates and assumptions which might cause material adjustments on the book values of assets and liabilities in future financial reporting period are given below:

The Determination of Impairment on Assets:

Basic assumptions and calculation methods of the Group relating to impairment on assets are explained in Note 2.3.6.

Calculation of the Liability for Frequent Flyer Program (FFP):

As explained in Note 2.3.1, Group has a FFP program called "Miles and Smiles" for its members. In the calculation of the liability historical statistics are used for miles earned from flights.

Useful Lives and Residual Values of Tangible Assets:

Group has allocated depreciation over tangible assets by taking into consideration the useful lives and residual values explained in Note 2.3.3.

Deferred Tax:

Deferred tax assets and liabilities are recorded using substantially enacted tax rates for the effect of temporary differences between book and tax bases of assets and liabilities. There are deferred tax assets resulting from tax loss carry-forwards and deductible temporary differences, all of which could reduce taxable income in the future in the Group. Based on available evidence, it is determined whether it is probable that all or a portion of the deferred tax assets will be realized.

Corporate Tax Law 32/A and the effects of Resolution issued on "Government Assistance for Investments" by the Council of Ministers:

An incentive standard that reconstitutes government assistance for investments initiated effective from 28 February 2009 with the clause 32/A of the Corporate Tax Law by the 9th article of the 5838 numbered Law in order to support investments through taxes on income.

The new investment system becomes effective upon the issuance of the Council of Ministers' resolution "Government Assistance for Investments" No: 2009/15199 on 14 July 2009. Apart from the previous "investment incentive" application, which provides the deduction of certain portion of investment expenditures against corporate tax base, the new support system aims to provide incentive support to companies by deducting "contribution amount", which is calculated by applying the "contribution rate" prescribed in the Council of Ministers' resolution over the related investment expenditure, against the corporate tax imposed on the related investment to the extent the amount reaches to the corresponding "contribution amount".

The Group has right to benefit from some incentives in "Investment Incentive System" due to airline cargo and passenger transportation activities. As a result of the applications within this scope, Investment Incentive Certificates are obtained for supply of aircraft and ground handling services.

2.4 Critical Accounting Estimates and Judgements (cont'd)

		Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024		TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
				BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont'd)
2.4				Critical Accounting Estimates and Judgements (cont'd)
		by the Council of Ministers (cont'd):				Corporate Tax Law 32/A and the effects of Resolution issued on "Government Assistance for Investments"
				financial reports of the Incorporation and the incentives utilized are listed below:		The information on the Investment Incentive Certificates that may have an impact on the current or future
Date of Cabinet Decree	Number of Cabinet Decree	Date of Inv. Incentive Certificate	Investment Status	Tax Reduction	Total Amount of Investment USD: (*)	Utilized Contribution Amount of Investment USD: (**)
15.06.2012	2012/3305	9.08.2018	Completed	Tax Reduction %90 / Contribution rate to Investment %50	5,996	334
15.06.2012	2012/3305	18.12.2014	Completed	Tax Reduction %50 / Contribution rate to Investment %15	482	-
14.07.2009	2009/15199	28.12.2010	Completed	Tax Reduction %50 / Contribution rate to Investment %20	377	-
20.01.2018	2017/11133	11.09.2018	Continue	Tax Reduction %50 / Contribution rate to Investment %25	71	-
15.06.2012	2012/3305	12.12.2023	Continue	Tax Reduction %50 / Contribution rate to Investment %15	39	5

(**) The contribution amount of investment, which is not utilizable when there is no tax base, is transferrable by indexing with revaluation rate in accordance with the provisions of the relevant legislation.

There is no clear guidance in regards to the accounting for government tax incentives on investments in IAS 12 "Income Tax" and IAS 20 "Accounting for Government Grants and Disclosure of Government Assistance". Since the use of "contribution amount" depends on future earnings from the related investment for aircrafts over many years, the Group management considers that the accounting for the related investment contribution will be more appropriate if the grant is classified as profit or loss on a systematic and rational basis over the useful life of the related assets. In addition, investments on other tangible assets, the Group management considers that the accounting of grant contribution in a shorter period of time and as profit or loss will be more appropriate for the nature of investment support in the period when it is possible to benefit from the incentive.

2.5 New and Revised Standards and Interpretations

a) Standards, amendments, and interpretations applicable as of 31 December 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.

The Group continues its efforts to comply with these standards.

b) Standards, amendments, and interpretations that are issued but not effective as of 31 December 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.

Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments; effective from annual reporting periods beginning on or after 1 January 2026 (early adoption is available). These amendments:

• clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
• clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
• add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and
• make updates to the disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI).

2.5 New and Revised Standards and Interpretations (cont'd)

b) Standards, amendments, and interpretations that are issued but not effective as of 31 December 2023 (cont'd):

Annual improvements to IFRS – Volume 11; Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:

• IFRS 1 First-time Adoption of International Financial Reporting Standards;
• IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
• IFRS 9 Financial Instruments;
• IFRS 10 Consolidated Financial Statements; and
• IAS 7 Statement of Cash Flows.

IFRS 18 Presentation and Disclosure in Financial Statements; effective from annual periods beginning on or after 1 January 2027. This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:

• the structure of the statement of profit or loss;
• required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, management-defined performance measures); and
• enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

IFRS 19 Subsidiaries without Public Accountability: Disclosures; effective from annual periods beginning on or after 1 January 2027. Earlier application is permitted. This new standard works alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19's reduced disclosure requirements balance the information needs of the users of eligible subsidiaries' financial statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if:

• it does not have public accountability; and
• it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.

2.6 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).

2.7 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 Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD
The joint ventures accounted for using the equity method are as follows:
	31 December 2024	31 December 2023
Sun Express	322	240
TEC	94	85
TGS	67	56
Turkish DO&CO	67	47
TFS Akaryakıt	42	29
THY Opet	40	30
Goodrich	7	5
We World Express	5	5
	644	497

THY Opet	40	30
Goodrich	7	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 December 2024	31 December 2023
Sun Express	82	135
TGS	30	37
Turkish DO&CO	27	19
TFS Akaryakıt	18	13
TEC	14	18
THY Opet	3	9
Goodrich	1	-
We World Express	1	1
Air Albania (*)	-	-
	176	232
(*) 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 December 2024, the loss is USD 3. (The loss as of 31 December 2023: USD 2). Movement in investments accounted by using the equity method is as follows:
	1 January - 31 December 2024	1 January - 31 December 2023
Opening balance	497	277
Share of net profit	176	232
Foreign currency translation difference Other comprehensive income / (expense)	13	72
recognized in equity	-	(33)

Turkish DO&CO	27	19
TFS Akaryakıt	18	13
TEC	14	18
THY Opet	3	9
Goodrich	1	-
We World Express	1	1
venture's shareholders' equity, has not been accounted in the consolidated financial statements. As of 31 December 2024, the loss is USD 3. (The loss as of 31 December 2023: USD 2).
Movement in investments accounted by using the equity method is as follows:
	1 January - 31 December 2024	1 January - 31 December 2023
Opening balance
	497	277
Share of net profit	176	232
Foreign currency translation difference Other comprehensive income / (expense)	13	72
recognized in equity	-	(33)
Equity investment disposal
Dividends to shareholders	- (42)	(4) (47)

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

INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD (cont'd)		(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
				31 December 2024
	Sun Express	TEC	Turkish DO&CO	TGS	TFS Akaryakıt	THY Opet	Other	Total
Total assets	2,498	321	277	401	529	174	42	4,242
Total liabilities	1,854	128	144	268	360	94	13	2,861
Total equity	644	193	133	133	169	80	29	1,381
Group's share in total equity	322	94	67	67	42	40	12	644
					1 January - 31 December 2024
Revenue	2,104	452	669	798	3,466	770	152	8,411
Profit for the year	164	28	54	60	71	6	7	390
Group's share in joint
venture's profit for the year	82	14	27	30	18	3	2	176
				31 December 2023
			Turkish		TFS
	Sun Express	TEC	DO&CO	TGS	Akaryakıt	THY Opet	Other	Total
Total assets	2,222	275	227	317	499	133	41	3,714
Total liabilities	1,743	102	134	206	381	73	17	2,656
Total equity	479	173	93	111	118	60	24	1,058
Group's share in total equity	240	85	47	56	29	30	10	497
					1 January - 31 December 2023
Revenue	1,704	549	476	658	4,010	967	82	8,446
Profit for the year	270	39	37	74	52	17	2	491
Group's share in joint
venture's profit for the year	135	18	19	37	13	9	1	232

4. SEGMENT REPORTING

Air Transport ("Aviation")

Technical Maintenance Services ("Technical")

4.1 Total Assets and Liabilities

31 December 2024	31 December 2023
	35,497
	1,898
42,394	37,395
(2,720)	(1,763)
39,674	35,632
31 December 2024	31 December 2023
	19,982
699	496
21,329	20,478
(969)	(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 detailed information about the revenue of the Group is given in Note 19. 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 40,136 2,258 20,630

4. SEGMENT REPORTING (cont'd)

4.2 Net Profit / (Loss)

SEGMENT REPORTING (cont'd)		(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
4.2 Net Profit / (Loss)
Segment Results:
			Inter-segment
1 January - 31 December 2024	Aviation	Technic	elimination	Total
Sales to External Customers	22,134	535	-	22,669
Inter-Segment Sales	470	1,686	(2,156)	-
Revenue	22,604	2,221	(2,156)	22,669
Cost of Sales (-)	(18,523)	(1,908)	2,084	(18,347)
Gross Profit	4,081	313	(72)	4,322
Administrative Expenses (-) Selling and Marketing Expenses (-)	(730) (1,829)	(133) (19)	299 10	(564) (1,838)
Other Operating Income	842	79	(315)	606
Other Operating Expenses (-)	(155)	(36)	78	(113)
Operating Profit Before
Investment Activities	2,209	204	-	2,413
Income from Investment Activities	1,667	1	-	1,668
Expenses from Investment Activities	(74)	(1)	-	(75)
Share of Investments' Profit
Accounted for Using
The Equity Method	161	15	-	176
Operating Profit Financial Income	3,963 989	219 28	- (26)	4,182 991
Financial Expense (-)	(1,522)	(32)	26	(1,528)
Monetary Gain	2	-	-	2
Profit Before Tax	3,432	215	-	3,647
Tax Expense (-)	(206)	(16)	-	(222)
Current Tax Expense (-)	(380)	(7)	-	(387)
Deferred Tax Income / (Expense)	174	(9)	-	165
Net Profit For The Year	3,226	199	-	3,425

4. SEGMENT REPORTING (cont'd)

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

SEGMENT REPORTING (cont'd)
4.2 Net Profit / (Loss) (cont'd)
Segment Results (cont'd):
			Inter-segment
1 January - 31 December 2023	Aviation	Technic	elimination	Total
Sales to External Customers	20,411	531	-	20,942
Inter-Segment Sales	275	1,329	(1,604)	-
Revenue	20,686	1,860	(1,604)	20,942
Cost of Sales (-)	(15,992)	(1,476)	1,408	(16,060)
Gross Profit	4,694	384	(196)	4,882
Administrative Expenses (-)	(496)	(144)	191	(449)
Selling and Marketing Expenses (-)	(1,757)	(11)	8	(1,760)
Other Operating Income	494	33	(18)	509
Other Operating Expenses (-)	(331)	(7)	15	(323)
Operating Profit Before
Investment Activities	2,604	255	-	2,859
Income from Investment Activities	933	-	-	933
Expenses from Investment Activities	(65)	-	-	(65)
Share of Investments' Profit
Accounted for Using
The Equity Method	213	19	-	232
Operating Profit	3,685	274	-	3,959
Financial Income	611	-	-	611
Financial Expense (-)	(921)	(10)	-	(931)
Monetary Gain	2	-	-	2
Profit Before Tax	3,377	264	-	3,641
Tax Income / (Expense)	2,442	(62)	-	2,380
Current Tax Expense (-)	(4)	(62)	-	(66)
Deferred Tax Income	2,446	-	-	2,446
Net Profit For The Year	5,819	202	-	6,021
4.3 Investment Operations			Inter-segment
1 January - 31 December 2024	Aviation	Technic	elimination	Total
Purchase of property and equipment
and intangible assets	3,482	350	-	3,832
Current year depreciation
and amortization charge	1,988	215	-	2,203
Investments accounted
for using equity method	543	101	-	644

4.3 Investment Operations

		Inter-segment
		elimination	Total
Purchase of property and equipment
Current year depreciation
Investments accounted

4. SEGMENT REPORTING (cont'd)

4.3 Investment Operations (cont'd)

For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	Notes to the Consolidated Financial Statements	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
SEGMENT REPORTING (cont'd)
4.3 Investment Operations (cont'd)
1 January - 31 December 2023	Aviation	Technic	Inter-segment elimination	Total
Purchase of property and equipment
and intangible assets	3,597	344	-	3,941
Current year depreciation
and amortization charge Investments accounted	1,833	202	-	2,035
for using equity method	378	119	-	497
CASH AND CASH EQUIVALENTS
		31 December 2024		31 December 2023
Cash			1	1
Banks – Time deposits			2,296	583
Banks – Demand deposits			424	99
			2,721	683

5. CASH AND CASH EQUIVALENTS

	31 December 2024	31 December 2023
Cash
$Banks - Time \text{ deposits}$	2,296	583
Banks – Demand deposits	424	99
		683

Purchase of property and equipment
Current year depreciation
Investments accounted
CASH AND CASH EQUIVALENTS
			2,721		683
		Details of the time deposits as of 31 December 2024, and 2023 are as follows:
Original Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
66,608	TL	41.85% - 57.00%	March 2025		2,050
205	EUR	2.81% - 4.43%	March 2025		216
30	USD	3.00%	January 2025		30
					2,296
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
		Reconciliation with statement of cash flows as of 31 December 2024 and 2023 are as follows:
			31 December 2024	31 December 2023
Cash and cash equivalents			2,721		683
Interest accruals (-)			(165)		(6)
			2,556		6774
Cash and cash equivalents in statement of cash flows

2,556	6774

6. FINANCIAL INVESTMENTS

	Notes to the Consolidated Financial Statements	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
	For the Year Ended 31 December 2024 FINANCIAL INVESTMENTS	(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
		Short-term financial investments are as follows:
			31 December 2024	31 December 2023
	Fair value through profit and loss (FVTPL)
	- Currency protected deposit account (*)		975	4,863
- Investment Fund			198	22
- Equity securities			17	16
(FVOCI)		Fair value through other comprehensive income
- Corporate debt securities			901	443
	- Government debt securities		47	-
		Time deposits with maturity more than 3 months	1,208	-
			3,346	5,344
		(*) Since the currency protected deposits are hybrid contracts with derivates, they are accounted based on their fair values as of 31 December 2024 and changes in the fair values are accounted in the profit and loss. Time deposit with maturity of more than 3 months as of 31 December 2024 is as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
35,438	TL	46.25% - 53.14%	July 2025	1,130
75	EUR	3.00%	June 2025	78

Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
				1,208

		(*) Since the currency protected deposits are hybrid contracts with derivates, they are accounted based on their fair values as of 31 December 2024 and changes in the fair values are accounted in the profit and loss.
		Time deposit with maturity of more than 3 months as of 31 December 2024 is as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
				1,208
		Long-term financial investments are as follows:
			31 December 2024	31 December 2023
FVOCI
- Corporate debt securities			897	139
	- Government debt securities		215	258
Other			1	1
		Contractual maturity dates of financial investments measured at FVOCI as of 31 December 2024, and 2023	1,113	398
are as follows:
			31 December 2024	31 December 2023
Less than 1 year			948	443
1 to 5 years			673	119
			439	278
Over 5 years

31 December 2024	31 December 2023

7. BORROWINGS

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) BORROWINGS
Short-term borrowings are as follows:
Bank borrowings	31 December 2024 1,571	31 December 2023 1,345
Short-term portions of long-term borrowings are as follows:

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements
For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) BORROWINGS
Short-term borrowings are as follows:
Bank borrowings	1,571	1,345
Short-term portions of long-term borrowings are as follows:
	31 December 2024	31 December 2023
Lease liabilities (Note: 17)	1,827	1,760
Bank borrowings	291	618
	2,118	2,378
Long-term borrowings are as follows:
	31 December 2024	31 December 2023

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) BORROWINGS
Short-term borrowings are as follows:
Bank borrowings	1,571	1,345
Short-term portions of long-term borrowings are as follows:
Lease liabilities (Note: 17)	1,827	1,760
Bank borrowings	291	618
	2,118	2,378
Long-term borrowings are as follows:
	31 December 2024	31 December 2023
Lease liabilities (Note: 17)	10,139	10,052
Bank borrowings	33	472
	10,172	10,524
Details of bank borrowings as of 31 December 2024, and 2023 are as follows:
	31 December 2024	31 December 2023

	31 December 2024	31 December 2023
Less than 1 year	1,862	1,963
Between 1 – 5 years	24	457
Over 5 years	9	15
	1,895	2,435

		Long-term borrowings are as follows:
	Lease liabilities (Note: 17)			10,139	10,052
Bank borrowings				33	472
				Details of bank borrowings as of 31 December 2024, and 2023 are as follows:
				31 December 2024	31 December 2023
Less than 1 year				1,862	1,963
Between 1 – 5 years				24	457
Over 5 years				9	15
				1,895	2,435
Original		Interest	Effective Interest		31 December
Amount	Currency	Rate Type	Rate	Payment Period	2024
1,542	EUR	Fixed	0.20% - 4.00%	December 2024 - March 2031	1,606
286	USD	Fixed	5.0% - 5.25%	February 2025	285
4	EUR	Floating	Euribor + 3.65%	October 2025	4
					1,895
Original		Interest	Effective Interest		31 December
Amount	Currency	Rate Type	Rate	Payment Period	2023

				Details of bank borrowings as of 31 December 2024, and 2023 are as follows:
				31 December 2024	31 December 2023
Less than 1 year				1,862	1,963
Between 1 – 5 years				24	457
Over 5 years				9	15
				1,895	2,435
Original		Interest	Effective Interest		31 December
Amount	Currency	Rate Type	Rate	Payment Period	2024
					1,895
Original		Interest	Effective Interest		31 December
Amount	Currency	Rate Type	Rate	Payment Period	2023
1,443	EUR	Fixed	0.20% - 4.00%	March 2024 - March 2031	1,597
			Euribor + 2.90% -
758	EUR	Floating	Euribor + 5.50%	February 2024 - August 2026	838
					2,435

1. BORROWINGS (cont'd)

For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
BORROWINGS (cont'd)
Under the terms of major bank loan agreement made between DZBank and THYAO, the Group shall ensure that:
a. Net Worth will not at any time less than 4.500.000.000 USD
b. The ratio of EBITDA to Net Interest Expense for any Relevant Period will not be less than 4.
The Group evaluates the aforementioned conditions on an annual basis.
As of 31 December 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:
	1 January			Non-cash		31 December
	2024	Payment	Interest	Changes	Additions	2024
Bank Borrowings	2,435	(3,190)	(96)	(33)	2,779	1,895
	1 January			Non-cash		31 December
Bank Borrowings	2023 3,273	Payment (3,436)	Interest (141)	Changes 245	Additions 2,494	2023 2,435

	1 January			Non-cash		31 December
				Changes	Additions	2023
Bank Borrowings	3,273	(3,436)	(141)	245	2,494	2,435

					Reconciliation of bank borrowings and lease liabilities arising from financing activities:
		1 January			Non-cash Changes		31 December 2024
Bank Borrowings		2,435	(3,190)	(96)	(33)	Additions 2,779	1,895
		1 January			Non-cash		31 December
		2023	Payment	Interest	Changes	Additions	2023
Bank Borrowings		3,273	(3,436)	(141)	245	2,494	2,435
	1 January			Non-cash		New	31 December
	2024	Payment	Interest	Changes	Modifications	Leases	2024
Aircraft	11,221	(1,797)	(288)	(208)		37 2,322	11,287
Property	590	(74)	-	(2)		161 3	678
Other	1 11,812	(2) (1,873)	- (288)	- (210)		- 2 2,327 198	1 11,966
	1 January 2023	Payment	Interest	Non-cash Changes	Modifications	New Leases	31 December 2023
Aircraft	10,171	(1,609)	(247)	405		30 2,471	11,221
Property	593	(57)	-	26		(18) 46	590
Other	2	(1)	-	-		- -	1
	10,766	(1,667)	(247)	431		2,517 12	11,812

1 January		Non-cash			31 December
				New Leases	2023

8. RELATED PARTIES

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements
RELATED PARTIES
Short-term trade receivables from related parties are as follows:
	31 December 2024	31 December 2023
Air Albania Sun Express	38 3	36 4
We World Express	2	9
PTT	-	1
	43	50
Other short-term receivables from related parties are as follows:
	31 December 2024	31 December 2023
TEC	7	-
Air Albania	2	2
THY Opet	-	7
	9	9
Other long-term receivables from related parties are as follows:
	31 December 2024	31 December 2023

Other short-term receivables from related parties are as follows:
TEC	7	-
Air Albania	2	2
THY Opet	-	7
	9	9
Other long-term receivables from related parties are as follows:
Air Albania	12	-
Short-term trade payables to related parties are as follows:
	31 December 2024	31 December 2023
TFS Akaryakıt Hizmetleri	101	132
TGS	93	57

Air Albania	12	-

TEC	7	-
Air Albania	2	2
THY Opet	-	7
	9	9
Other long-term receivables from related parties are as follows:
Air Albania	12	-
	31 December 2024	31 December 2023
TFS Akaryakıt Hizmetleri	101	132
TGS	93	57
Turkish DO&CO	65	42
THY Opet	19	19
TEC	11	32
Turkcell İletişim Hizmetleri A.Ş. (Turkcell)	3	1
Goodrich	1	2
	293	285
Other short-term payables to related parties are as follows:
	31 December 2024	31 December 2023
	1	-
Air Albania
Türkiye Sigorta A.Ş.	-	4

1	4

8. RELATED PARTIES (cont'd)

a) Sales to related parties:

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
RELATED PARTIES (cont'd)
Transactions with related parties for the year ended 31 December 2024 and 2023 are as follows:
a) Sales to related parties:
	1 January - 31 December 2024	1 January - 31 December 2023
TGS	101	54
Sun Express	34	76
TEC	9	33
We World Express	6	4
Türk Telekom	6	-
Türkiye Sigorta A.Ş.	5	8
Air Albania	4	11
Goodrich	2	1
PTT	2	5
Turkcell	1	2
Turkish DO&CO	1	-
	171	194
b) Purchases from related parties:
	1 January - 31 December 2024	1 January - 31 December 2023

b) Purchases from related parties:

We World Express	6	4
Türk Telekom	6	-
Türkiye Sigorta A.Ş.	5	8
Air Albania	4	11
Goodrich	2	1
PTT	2	5
Turkcell	1	2
b) Purchases from related parties:
	1 January - 31 December 2024	1 January - 31 December 2023
TFS Akaryakıt Hizmetleri	2,759	2,732
TGS	645	405
Turkish DO&CO	551	456
TEC	348	474
THY Opet	339	383
Türk Telekom	26	-
Türkiye Sigorta A.Ş.	24	37
Sun Express	19	28
Goodrich	16	11
Turkcell	14	12
Ziraat Bankası	4	-
Halk Bankası	1	-
	4,746	4,538
Details of the financial assets and liabilities for related parties as of 31 December 2024, and 2023 are as follows:
	31 December 2024	31 December 2023

	31 December 2024	31 December 2023
Debt Securities (*)	1,718	841
Financial investments (**)	1,082	3,174
Banks - Time deposits	1,637	571
Banks - Demand deposits	173	10
Investment Fund	49	21
Equity share	2	1
Bank borrowings	(5)	(543)

(*) This represents the nominal amount.

(**) As of 31 December 2024, this amount represents the currency protected time deposits and time deposit with maturity more than 3 months.

8. RELATED PARTIES (cont'd)

	Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES (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 December 2024, and 2023 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
46,198	TL	41.85% - 49.40%	March 2025	1,391
205	EUR	2.81% - 4.43%	March 2025	216
30	USD	3.00%	January 2025	30
				1,637
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
December 2023: USD 432).		As of 31 December 2024, the amount of letters of guarantees given to the related parties is USD 90 (31
		Details of the financial investments at related parties as of 31 December 2024, and 2023 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
29,321	TL (*)	36.00% - 51.30%	July 2025	1,004
75	EUR	3.00%	June 2025	78
				1,082
Amount	Currency	Effective Interest Rate	Maturity	31 December 2023
	TL	15.00% - 54.15%	November 2024	3,174

				571
December 2023: USD 432).		As of 31 December 2024, the amount of letters of guarantees given to the related parties is USD 90 (31
		Details of the financial investments at related parties as of 31 December 2024, and 2023 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
29,321	TL (*)	36.00% - 51.30%	July 2025	1,004
75	EUR	3.00%	June 2025	78
				1,082
Amount	Currency	Effective Interest Rate	Maturity	31 December 2023
93,432	TL	15.00% - 54.15%	November 2024	3,174
maturity more than 3 months.		(*) As of 31 December 2024, this amount represents the currency protected time deposits and time deposit with Details of the debt securities at related parties as of 31 December 2024, and 2023 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
			June 2025 - May
	EUR	5,25% - 9,88%	2030	1,124
1,079
594	USD	3,95% - 10,12%	October 2026 - May 2047	594

Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
				1,082
93,432	TL	15.00% - 54.15%	November 2024	3,174
maturity more than 3 months.		(*) As of 31 December 2024, this amount represents the currency protected time deposits and time deposit with
		Details of the debt securities at related parties as of 31 December 2024, and 2023 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
			June 2025 - May
1,079	EUR	5,25% - 9,88%	2030	1,124
			October 2026 -
594	USD	3,95% - 10,12%	May 2047	594
				1,718
Amount	Currency	Effective Interest Rate	Maturity	31 December 2023
			January 2024 -
406	EUR	3.25% - 5.70%	June 2024	449
			January 2024 -
	USD	5.38% - 8.60%	June 2024	392
392
				841

8. RELATED PARTIES (cont'd)

	Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES (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 December 2024, and 2023 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
4	EUR	(Euribor + 3.65%)	October 2025	5
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 -	1 January -

Interest income from related parties:

4	EUR	(Euribor + 3.65%)	October 2025	5
		2.55% - (Euribor + 5.50%)	March 2026	543
	Interest income from related parties:
			1 January - 31 December 2024	1 January - 31 December 2023
	Türkiye Halk Bankası A.Ş. (Halk Bankası)		411	156
	Türkiye Vakıflar Bankası T.A.O. (Vakıfbank)		367	130
	T.C. Ziraat Bankası A.Ş. (Ziraat Bankası)		341	103
	Ziraat Katılım Bankası A.Ş.		40	29
			1,159	418
	Interest expense to related parties:
			1 January -	1 January -
			31 December 2024	31 December 2023
Vakıfbank			5	33
Ziraat Bankası			4	20
			9	53

Interest expense to related parties:

	1 January -	1 January -
	31 December 2024	31 December 2023
Vakıfbank	5	33
Ziraat Bankası	4	20

Transactions between the Group and TFS Akaryakıt 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, support and technology 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 and, Türk Telekom 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. 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 19 for the period between 1 January - 31 December 2024 (1 January- 31 December 2023: USD 6).

9. TRADE RECEIVABLES AND PAYABLES

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) TRADE RECEIVABLES AND PAYABLES
Trade receivables from third parties as of 31 December 2024 and 2023 are as follows:
	31 December 2024	31 December 2023
Trade receivables	967	912
Expected Credit Loss (-)	(105)	(106)
	862	806
Provision for doubtful receivables has been determined based on past experience for uncollectible receivables, and also ECL calculation in accordance with the accounting policies described in Note 2.3.8. Details for credit risk, foreign currency risk and impairment for trade receivables are explained in Note 34.
Trade payables to third parties as of 31 December 2024 and 2023 are as follows:
Trade payables	31 December 2024 1,201	31 December 2023 1,006
PAYABLES RELATED TO EMPLOYEE BENEFITS
Payables related to employee benefits as of 31 December 2024 and 2023 are as follows:
	31 December 2024	31 December 2023
Accrued salaries	458	352
Social security premiums payable	78 536	66 418

	31 December 2024	31 December 2023
Trade payables		.006

10. PAYABLES RELATED TO EMPLOYEE BENEFITS

Provision for doubtful receivables has been determined based on past experience for uncollectible receivables, and also ECL calculation in accordance with the accounting policies described in Note 2.3.8. Details for credit risk, foreign currency risk and impairment for trade receivables are explained in Note 34.
Trade payables to third parties as of 31 December 2024 and 2023 are as follows:
PAYABLES RELATED TO EMPLOYEE BENEFITS
Payables related to employee benefits as of 31 December 2024 and 2023 are as follows:
	31 December 2024	31 December 2023
Accrued salaries
Social security premiums payable	458 78	352 66

11. OTHER RECEIVABLES AND PAYABLES

PAYABLES RELATED TO EMPLOYEE BENEFITS
Payables related to employee benefits as of 31 December 2024 and 2023 are as follows:
	31 December 2024	31 December 2023
Social security premiums payable OTHER RECEIVABLES AND PAYABLES Other short-term receivables from third parties as of 31 December 2024, and 2023 are as follows:	78	66
	31 December 2024	31 December 2023
Predelivery payments made for aircraft	837	305
Receivables from technical purchases	257	187
Bank deposits with transfer limitations (*)	145	225
Tax refund	49	69
Receivables from pilots for flight training	31	29
Others	40	65

(*) As of 31 December 2024, the amount consists of bank deposits in Ethiopia, Bangladesh, 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, Republic of Malawi, Republic of Equatorial Guinea, Bolivarian Republic of Venezuela, State of Libya 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).

11. OTHER RECEIVABLES AND PAYABLES (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
OTHER RECEIVABLES AND PAYABLES (cont'd)
Other long-term receivables from third parties as of 31 December 2024, and 2023 are as follows:
	31 December 2024	31 December 2023
Predelivery payments made for aircraft	566	501
Investment incentives (**)	420	613
Receivables from pilots for flight training	178	172
Deposits and guarentees given	75	80
Interest and commodity swap agreement deposits	13	29
	1,252	1,395
(**) This represents the accrued amount as of 31 December 2024. Total contribution of government incentives related
to fleet investments amounts to USD 4,225 (31 December 2023: USD 3,749).
Other short-term payables to third parties as of 31 December 2024 and 2023 are as follows:
	31 December 2024	31 December 2023
Taxes and funds payable	269	185
Deposits and guarantees received	5	8
Other liabilities	41	45
	315	238
Other long-term payables to third parties as of 31 December 2024 and 2023 are as follows:

Deposits and guarentees given	75	80
Interest and commodity swap agreement deposits	13	29
(**) This represents the accrued amount as of 31 December 2024. Total contribution of government incentives related to fleet investments amounts to USD 4,225 (31 December 2023: USD 3,749).
Other short-term payables to third parties as of 31 December 2024 and 2023 are as follows:
	31 December 2024	31 December 2023
Other long-term payables to third parties as of 31 December 2024 and 2023 are as follows:	31 December 2024	31 December 2023
Deposits and guarantees received	32	25

31 December 2024	31 December 2023

12. INVENTORIES

	31 December 2024	31 December 2023
	Other long-term payables to third parties as of 31 December 2024 and 2023 are as follows:
	31 December 2024	31 December 2023
	31 December 2024	31 December 2023
Spare parts	339	285
Other inventories (*)	341	143
	680	428
Provision for impairment (-)	(9)	(10)

13. PREPAID EXPENSES AND DEFERRED INCOME

Short-term prepaid expenses are as follows:

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
PREPAID EXPENSES AND DEFERRED INCOME
Prepaid expenses as of 31 December 2024, and 2023 are as follows:
Short-term prepaid expenses are as follows:
	31 December 2024	31 December 2023
Advances given for purchases	176	120
Prepaid sales commissions	17	22
Prepaid advertising expenses	12	58
Other prepaid expenses	97	37
	302	237
Long-term prepaid expenses are as follows:
		31 December 2023
	31 December 2024

Long-term prepaid expenses are as follows:

Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
PREPAID EXPENSES AND DEFERRED INCOME
Prepaid expenses as of 31 December 2024, and 2023 are as follows:
Short-term prepaid expenses are as follows:
	31 December 2024	31 December 2023
Long-term prepaid expenses are as follows:
	31 December 2024	31 December 2023
Prepaid engine maintenance expenses	1,586	1,183
Prepaid aircraft financing expenses	53	54
Advances given for property and
equipment purchases	43	51
Other prepaid expenses	14	6
	1,696	1,294
Deferred incomes as of 31 December 2024, and 2023 are as follows:
Deferred income is as follows:
	31 December 2024	31 December 2023
Passenger flight liabilites	2,659	2,656
Other short-term deferred income	285	49
	2,944	2,705
Passenger flight liability is as follows:
	31 December 2024	31 December 2023

Deferred income is as follows:

Deferred incomes as of 31 December 2024, and 2023 are as follows:
Deferred income is as follows:
	31 December 2024	31 December 2023
Passenger flight liability is as follows:
	31 December 2024	31 December 2023
Flight liability for tickets sold	2,352	2,420
Frequent flyer program liability	307	236
	2,659	2,656
Other short-term deferred income is as follows:
	31 December 2024	31 December 2023

Passenger flight liability is as follows:

	31 December 2024	31 December 2023
Flight liability for tickets sold	2,352	2,420

Other short-term deferred income is as follows:

Deferred income is as follows:
	31 December 2024	31 December 2023
Passenger flight liability is as follows:
	31 December 2024	31 December 2023
Flight liability for tickets sold	2,352	2,420
Other short-term deferred income is as follows:
	31 December 2024	31 December 2023
Unused manufacturers' credits	172	-
Advances received	33	10
		31
Deferred other contract income	31
Other	49	8

13. PREPAID EXPENSES AND DEFERRED INCOME (cont'd)

Long-term deferred income is as follows:

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
13. PREPAID EXPENSES AND DEFERRED INCOME (cont'd)
Long-term deferred income is as follows:
	31 December 2024	31 December 2023
Deferred other contract income	81	107
Other	50	1
	131	108
INVESTMENT PROPERTY

14. INVESTMENT PROPERTY

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
13. PREPAID EXPENSES AND DEFERRED INCOME (cont'd)
Long-term deferred income is as follows:
	31 December 2024	31 December 2023
INVESTMENT PROPERTY
	31 December 2024	31 December 2023
Investment properties at the beginning of the year Transfer to inventory (*)	43 -	69 (26)
Investment properties at the end of the year	43	43
(*) Transfer to inventory consists of cost of the land in which the real estate project has started.
According to the valuation carried out by a Capital Market Boards (CMB)-licensed independent real estate

According to the valuation carried out by a Capital Market Boards (CMB)-licensed independent real estate valuation company using a market approach method, the fair value of the land that the Group recognized as investment property is USD 68 as of 31 December 2024 (31 December 2023: USD 79). The Group continues to recognize land based on cost as per IAS 40.

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES

15. PROPERTY AND EQUIPMENT

Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	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	11	54	57	281	54	261	8	236	962
Transfer (*)	67	15	3	8	1	-	2	(116)	(20)
Transfers between the account	-	-	-	1,741	13	-	-	-	1,754
Disposals	(7)	(11)	(10)	(189)	(12)	(192)	(1)	(10)	(432)
Closing balance at 31 December 2024	1,625	870	371	9,370	937	915	263	433	14,784
Accumulated Depreciation
Opening balance at 1 January 2024	470	424	249	4,344	388	428	142	-	6,445
Depreciation charge	69	42	30	476	78	131	15	-	841
Transfers between the account	-	-	-	766	5	-	-	-	771
Disposals	(4)	(9)	(10)	(185)	(12)	(107)	(1)	-	(328)
Closing balance at 31 December 2024	535	457	269	5,401	459	452	156	-	7,729
Net book value at 31 December 2024	1,090	413	102	3,969	478	463	107	433	7,055
Net book value at 31 December 2023	1,084	388	72	3,185	493	418	112	323	6,075

USD 2,126 of depreciation and amortization expenses recognized in cost of sales (31 December 2023: USD 1,960), USD 70 of general administrative expenses (31 December 2023: USD 69) and USD 7 of selling and marketing expenses (31 December 2023: USD 6) in total of USD 2,203 as of 31 December 2024 (31 December 2023: USD 2,035).

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

There is no mortgage on property, plant and equipment as of 31 December 2024 (31 December 2023: None).

15. PROPERTY AND EQUIPMENT (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 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	3	43	46	253	97	232	42	185	901
Transfer (*)	1	13	-	33	10	-	2	(92)	(33)
Transfers to inventories	-	-	-	-	-	-	-	(12)	(12)
Transfers between the accounts	-	-	-	2,513	66	-	-	-	2,579
Disposals	(50)	(3)	(4)	(298)	(42)	(132)	-	-	(529)
Closing balance at 31 December 2023	1,554	812	321	7,529	881	846	254	323	12,520
Accumulated Depreciation
Opening balance at 1 January 2023	406	385	229	3,108	319	387	126	-	4,960
Depreciation charge	71	41	24	377	77	127	16	-	733
Transfers between the accounts	-	-	-	1,123	34	-	-	-	1,157
Disposals	(7)	(2)	(4)	(264)	(42)	(86)	-	-	(405)
Closing balance at 31 December 2023	470	424	249	4,344	388	428	142	-	6,445
Net book value at 31 December 2023	1,084	388	72	3,185	493	418	112	323	6,075

15. PROPERTY AND EQUIPMENT (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
15. PROPERTY AND EQUIPMENT (cont'd)
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	2,736	60	26	2	2,824
Transfer	14	6	-	-	20
Disposals	(196)	-	(42)	(6)	(244)
Modifications	37	-	161	1	199
Transfers between the accounts (*)	(1,741)	(13)	-	-	(1,754)
Closing balance at 31 December 2024	22,861	391	808	5	24,065
	Aircraft	Spare engines	Real estate	Vehicles	Total
Accumulated Depreciation
Opening balance at 1 January 2024	5,936	71	78	7	6,092
Depreciation charge	1,271	22	45	3	1,341
Disposals	(196)	-	(1)	(6)	(203)
Modifications	-	-	(19)	-	(19)
Transfers between the account (*)	(766)	(5)	-	-	(771)
Closing balance at 31 December 2024	6,245	88	103	4	6,440
Net book value at 31 December 2024	16,616	303	705	1	17,625
	Aircraft	Spare engines	Real estate	Vehicles	Total
Cost
Opening balance at 1 January 2023	21,737	369	654	7	22,767
Additions	2,932	24	45	1	3,002
	22	11	-	-	33
Transfers		-	(19)	-	(191)
Disposals	(172)
Modifications	5	-	(17)	-	(12)
Transfers between the accounts (*)	(2,513)	(66)	-	-	(2,579)
Closing balance at 31 December 2023	22,011	338	663	8	23,020

Closing balance at 31 December 2024	22,861	391	808	5	24,065
Accumulated Depreciation
Opening balance at 1 January 2024	5,936	71	78	7	6,092
Depreciation charge	1,271	22	45	3	1,341
Closing balance at 31 December 2024	6,245	88	103	4	6,440
Cost
Opening balance at 1 January 2023	21,737	369	654	7	22,767
Additions	2,932	24	45	1	3,002
Transfers	22	11	-	-	33
Disposals	(172)	-	(19)	-	(191)
Modifications	5	-	(17)	-	(12)
Transfers between the accounts (*)	(2,513)	(66)	-	-	(2,579)
Closing balance at 31 December 2023	22,011	338	663	8	23,020
	Aircraft	Spare engines	Real estate	Vehicles	Total
Accumulated Depreciation
Opening balance at 1 January 2023	6,044	83	59	4	6,190
Depreciation charge	1,213	22	38	3	1,276
Disposals	(172)	-	(16)	-	(188)
Modifications	(26)	-	(3)	-	(29)
Transfers between the account (*)	(1,123)	(34)	-	-	(1,157)
Closing balance at 31 December 2023	5,936	71	78	7	6,092
	16,075	267	585	1	16,928

16. INTANGIBLE ASSETS

	(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)		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	-	23	23	46
Closing balance at 31 December 2024	44	322	28	394
Accumulated Amortization
Opening balance at 1 January 2024	-	258	3	261
Amortization charge	-	21	-	21
Closing balance at 31 December 2024	-	279	3	282
Net book value at 31 December 2024	44	43	25	112
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	-	38	-	38
Disposals	-	(2)	-	(2)
Closing balance at 31 December 2023	44	299	5	348
Accumulated Amortization
Opening balance at 1 January 2023	-	232	3	235
Amortization charge	-		26 -	26
Closing balance at 31 December 2023	-	258	3	261
Net book value at 31 December 2023	44	41	2	87

17. LEASES

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
Maturities of lease obligations are as follows:
	Future Minimum Lease Payments		Interest		Present Values of Minimum Lease Payments
	31 December 2024	31 December 2023	31 December 2024	31 December 2023	31 December 2024	31 December 2023
Less than 1 year	2,193	2,141	(366)	(381)	1,827	1,760
Between 1 – 5 years	6,223	6,505	(953)	(991)	5,270	5,514
Over 5 years	5,556	5,170	(687)	(632)	4,869	4,538
	13,972	13,816	(2,006)	(2,004)	11,966	11,812
				31 December 2024		31 December 2023
Fixed rate lease liabilities				6,668		6,349
Floating rate lease liabilities				5,298		5,463
				11,966		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 December 2024, the USD, Euro, CNY, JPY, TRY and Swiss Franc denominated lease obligations' weighted average interest rates are 5.43% (31 December 2023: 5.62%) for the fixed rate obligations and 1.55% (31 December 2023: 1.43%) for the floating rate obligations.

18. GOVERNMENT GRANTS AND INCENTIVES

Incentive certificates dated, 28 December 2010, 18 December 2014, 9 August 2018, 11 September 2018, and 12 December 2023 were obtained from Ministry of Industry and Technology for investment of aircrafts. These certificates provide the Group with certain advantages on reduction of corporate tax, customs duty exemption and support for insurance premium of employers. Please refer to Note 2.4 for the accounting of corporate tax effect of these investment certificates.

There is no time limit for the use of incentives received in this scope. As of 31 December 2024, the Group has a discount and exemption amounting to USD 4,225, which can be used in the future within the scope of these incentives (31 December 2023: USD 3,749).

18. GOVERNMENT GRANTS AND INCENTIVES (cont'd)

The Group accounts for government incentives in accordance with the policies disclosed in Note 2.4. As of 31 December 2024, The Group has discounts and exemptions amounting to USD 4,225 that it can benefit from in the foreseeable future (31 December 2023: USD 3,749). As of 31 December 2024, 339 USD of this tax advantage has been used.

• There is no time limit for the use of these incentives.

• The Group regularly conducts forecast studies for the usage periods of the tax advantage. The periods of use of the tax advantage have been estimated under the current conditions.

• The Group expects that the related tax benefits will be used within 1 - 5 years in this context. No change is expected in the 5 years usage plan.

• When a 10% deviation is applied to changes in the exchange rate, DPI-PPI ratio and other economic data that affect the use of investment incentives, as well as operational income/expenses that are likely to occur, no change is expected in the 1-5 years period of use. 31 December 2024 31 December 2023 Provisions for unused vacation 101 50

19. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

	31 December 2024	31 December 2023
Provisions for unused vacation

• When a 10% deviation is applied to changes in the exchange rate, DPI-PPI ratio and other economic data that affect the use of investment incentives, as well as operational income/expenses that are likely to occur, no change is expected in the 1-5 years period of use.
PROVISIONS, CONTINGENT ASSETS AND LIABILITIES
The Group recognizes an obligation for unused vacation liabilities based on vacation balances and salaries of employees at the end of each reporting period.
Short-term provisions as of 31 December 2024, and 2023 are as follows:
Short-term provision for employee benefits is as follows:
Changes in the provisions for the year ended 31 December 2024 and 2023 are set out below:	1 January - 31 December 2024	1 January - 31 December 2023
Provisions at the beginning of the year	50	39
Provisions for the current year	917	509
Foreign currency translation differences	(13)	(21)
Provisions released	(853)	(477)

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

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont'd) Other short-term provision is as follows:
31 December 2024 31 December 2023
Provisions for legal claims 14 6

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 1 January - 1 January - 31 December 2024 31 December 2023 Provisions at the beginning of the year 6 6 Provisions for the current year 9 3 Foreign currency translation differences (1) (3) Provisions at the end of the year 14 6 31 December 2024 31 December 2023 Provisions for redelivery maintenance 107 85 1 January - 1 January - 31 December 2024 31 December 2023 Opening 85 61 24 Changes in current year 22
PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont'd) Other short-term provision is as follows: Changes in the provisions for legal claims for the year ended 31 December 2024 and 2023 are set out below: The Group provides provisions for lawsuits initiated against itself due to its operations. The lawsuits initiated against the Group are usually reemployment lawsuits by former employees or related to damaged luggage or cargo. The estimates have been made on the basis of the advice from the legal advisors. Other long-term provision is as follows: Changes in the provisions for redelivery maintenance for the year ended 31 December 2024 and 2023 are set out below:	Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024
Provisions at the end of the year 107 85

	31 December 2024	31 December 2023
Provisions for redelivery maintenance

The Group provides provisions for lawsuits initiated against itself due to its operations. The lawsuits initiated against the Group are usually reemployment lawsuits by former employees or related to damaged luggage or cargo. The estimates have been made on the basis of the advice from the legal advisors.
Other long-term provision is as follows:
Changes in the provisions for redelivery maintenance for the year ended 31 December 2024 and 2023 are set out below:	1 January - 31 December 2024	1 January - 31 December 2023
Opening	85	61
Changes in current year	22	24

20. COMMITMENTS

COMMITMENTS a) Guarantees/Pledges/Mortgages ("GPM") given by the Group: Amount of letters of guarantees given as of 31 December 2024 is USD 165 (31 December 2023: USD 1,112). As of 31 December 2024, the letters of guarantee are given to various authorities (i.e. various banks and vendors.) 31 December 2024 31 December 2023 Original Original currency USD currency USD amount equivalent amount equivalent A. Total amounts of GPM given on the behalf of its own legal entity - 165 - 1,112 -Collaterals
TL 298 8 137 5
EUR 38 40 835 924
USD 82 82 64 64
Other - 35 - 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 - - - -
165 1,112
b) Aircraft purchase commitments:
The Group has signed agreements for 413 aircraft that will be delivered between the years 2024 and 2033,

b) Aircraft purchase commitments:

The Group has signed agreements for 413 aircraft that will be delivered between the years 2024 and 2033, (288 of aircraft are contractual and 125 of them are optional) with a list price value of USD 27,691 each. The Group has made a predelivery payment of USD 1,489 gross relevant to these purchases as of 31 December 2024 (31 December 2023: USD 868). SS

As of 31 December 2024, the ratio of other GPMs ("D") given by the Group to the Group's equity is 0% (31 December 2023: 0%).

21. EMPLOYEE BENEFITS

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
EMPLOYEE BENEFITS
Provisions for retirement pay liability as of 31 December 2024, and 2023 are comprised of the following:
	31 December 2024	31 December 2023
Provision for retirement pay liability	247	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 1,185 (full) (equivalent of TL 41,828 (full)) as of 31 December 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.

IAS 19 ("Employee Benefits") stipulates the progress of the Group's liabilities by use of actuarial valuation methods under defined benefit plans. Actuarial assumptions used in calculation of total liabilities are described as follows:
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 December 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 24.95% annual inflation rate (31 December 2023: 24.61%) and 29.32% 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 2.20% (31 December 2023: 2.38%). Ceiling for retirement pay is revised semi-annually. Ceiling amount of USD 1,322 (full) (equivalent to TL 46,655 (full)) which has been in effect since 1 January 2025, 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 December 2024	1 January - 31 December 2023
Provision at the beginning of the year	229	273
Interest cost	55	22
Service cost for the year	40	26
Actuarial loss
Payments	12
		56
Foreign currency translation difference	(28) (61)	(13) (135)
Provision at the end of the year	247	229

22. EXPENSES BY NATURE

For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
EXPENSES BY NATURE
Expenses by nature for the year ended 31 December 2024 and 2023 are as follows:
	1 January -	1 January -
	31 December 2024	31 December 2023
Fuel	6,163	6,232
Personnel	4,708	3,256
Depreciation and amortisation	2,203	2,035
Ground services Aircraft maintenance	1,490 1,153	1,241 997
Passenger services and catering	1,026	863
Airport	936	896
Air traffic control	799	718
Commissions and incentives	605	644
Wet lease	425	242
Reservation systems	286	299
Advertisement and promotion	215	193
IT and communication	120	56
Service	89	156
Taxes and duties	80	53
Insurance	72	64
Transportation	70	57
Rents	39	37
Call center	36	32
Consultancy	31	21
Systems use and associateship	28	25
Utility	25	28
Aircraft rent	15	21
Other	135	103
	20,749	18,269
OTHER ASSETS AND LIABILITIES
Other current assets as of 31 December 2024 and 2023 are as follows:
	31 December 2024	31 December 2023
Deferred VAT	222	101
Personnel and business advances	10	8
	232	109
Other current liabilities as of 31 December 2024 and 2023 are as follows:
	31 December 2024	31 December 2023

23. OTHER ASSETS AND LIABILITIES

	31 December 2024	31 December 2023
Deferred VAT	222	101
Personnel and business advances	10	8

OTHER ASSETS AND LIABILITIES
Other current assets as of 31 December 2024 and 2023 are as follows:
	31 December 2024	31 December 2023
Deferred VAT	222	101
Personnel and business advances	10	8
Other current liabilities as of 31 December 2024 and 2023 are as follows:
	31 December 2024	31 December 2023
Accruals for maintenance expenses of aircraft
under operating lease	417	379
Accruals for other expenses	50	126
Other	8	7
	475	512
58

24. SHAREHOLDERS' EQUITY

(Millions of TL) Class % 31 December 2024 % 31 December 2023 Türkiye Wealth Fund ^A 49.12 678 49.12 678 Republic of Türkiye Treasury and Finance Ministry Privatization Administration C - - - - Treasury Shares (*) A 0.40 6 0.35 5 Other (publicly held) A 50.48 696 50.53 697 Paid-in capital (Turkish Lira) 1,380 1,380 Inflation adjustment on share capital (Turkish Lira) (**) 1,124 1,124 Share capital (Turkish Lira) 2,504 2,504 Share capital (USD Equivalent) 1,597 1,597

The ownership structure of the Company's share capital is as follows:

(*) 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 5,541,044 shares with the amount of USD 39 as of 31 December 2024.

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

As of 31 December 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.

24. 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, Chinese Yuan 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, Chinese Yuan 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.

25. REVENUE

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 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 December 2024 31 December 2023 Passenger revenue 18,298 17,618 Scheduled 146 109 Unscheduled 18,444 Total passenger revenue Cargo revenue 1,778 Carried by cargo aircraft 1,717 Carried by passenger aircraft 3,495 Total cargo revenue Total passenger and cargo revenue 21,939 541 Technical revenue
			17,727
			1,418
			1,178
			2,596
			20,323
			531
	Other revenue	189	88
22,669 Net sales			20,942
(18,347) Cost of sales (-)			(16,060)
Gross profit 4,322			4,882
Breakdown of total passenger and cargo revenue by geographical locations is as follows:		1 January -	1 January -
31 December 2024 31 December 2023	- Europe	6,445	6,339
	- Asia and Far East	5,723	4,611
	- Americas	4,601	4,275
	- Africa	1,722	1,662
	- Middle East	1,675	1,938
	International flights	20,166	18,825
Domestic flights 1,773 1,498

Breakdown of total passenger and cargo revenue by geographical locations is as follows:	1 January -	1 January -
	31 December 2024	31 December 2023
- Europe	6,445	6,339
- Asia and Far East	5,723	4,611
- Americas	4,601	4,275
- Africa	1,722	1,662
- Middle East	1,675	1,938
International flights	20,166	18,825
Domestic flights	1,773	1,498

26. COST OF SALES

Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
COST OF SALES
Breakdown of the cost of sales is as follows:
	1 January - 31 December 2024	1 January - 31 December 2023
Fuel	6,163	6,232
Personnel	3,892	2,559
Depreciation and amortisation	2,126	1,960
Ground services	1,490	1,241
Aircraft maintenance	1,153	997
Passenger services and catering	1,026	863
Airport	936	896
Air traffic control	799	718
Wet lease	425	242
Transportation	70	57
Insurance	58	57
Service	51	91
IT and communication	40	17
Taxes and duties	21	26
Utility	17	23
Aircraft rent	15	21
Rents	15	11
Systems use and associateship	7	7
Other	43	42
	18,347	16,060

27. GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES

Breakdown of general administrative expenses is as follows:
	1 January - 31 December 2024	1 January - 31 December 2023
Personnel	335	264
Depreciation and amortisation	70	69
IT and communication	66	31
Systems use and associateship	14	12
Insurance	14	7
Consultancy	12	7
Service	11	35
Taxes and duties	11	6
Utility	8	5
Rents	7	4
Other	16	9
	564	449

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

GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES (cont'd)
Breakdown of selling and marketing expenses is as follows:
	1 January -	1 January -
	31 December 2024	31 December 2023
Commissions and incentives	605	644
Personnel	481	433
Reservation systems	286	299
Advertisement and promotion	215	193
Taxes and duties	48	21
Call center	36	32
Service	27	30
Consultancy	19	14
Rents	17	22
IT and communication	14	8
Systems use and associateship	7	6
Depreciation and amortisation	7	6
Other	76	52
	1,838	1,760
OTHER OPERATING INCOME / EXPENSES
Breakdown of other operating income and expenses are as follows:
	1 January -	1 January -
	31 December 2024	31 December 2023
Manufacturers' credits	253	77
Foreign exchange gains from
operational activities, gross	134	154
Insurance, indemnities, penalties income	69	184
Non- interest income from banks	59	10
Rent income	47	35
Turnover premium from suppliers	14	11
Delay interest income	6	4

28. OTHER OPERATING INCOME / EXPENSES

Rents	17	22
IT and communication	14	8
Systems use and associateship	7	6
Depreciation and amortisation	7	6
Other	76	52
OTHER OPERATING INCOME / EXPENSES
Breakdown of other operating income and expenses are as follows:
	1 January -	1 January -
	31 December 2024	31 December 2023
Manufacturers' credits	253	77
Foreign exchange gains from
Insurance, indemnities, penalties income	69	184
Non- interest income from banks	59	10
Rent income	47	35
Turnover premium from suppliers	14	11
Delay interest income	6	4
Reversal of ECL provision	2	3
Provisions released	1	4
Rediscount interest income	-	13
Other	21	14
	606	509
	1 January -	1 January -
	31 December 2024	31 December 2023
Foreign exchange losses from
operational activities, gross	75	71
Provisions	14	9
Rediscount interest expenses	11	-
Indemnity and penalty expenses	9 -	11 207
Donations and aid	4	25
Other	113	323

29. INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 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 - 31 December 2024	1 January - 31 December 2023
Interest income from financial investment Income from investment incentives Gain on sale of financial investments Gain on sale of fixed assets	1,292 267 102 7	478 399 37 19
	1,668	933
Breakdown of expense from investment activities is as follows:
	1 January - 31 December 2024	1 January - 31 December 2023
Loss on sale of financial investments Loss on sale of fixed assets	44 31	19 46
	75	65

	1 January -	1 January -
	31 December 2024	31 December 2023
Loss on sale of financial investments	44	19
Loss on sale of fixed assets	31	46

30. FINANCIAL INCOME/ EXPENSES

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
FINANCIAL INCOME/ EXPENSES
Breakdown of financial income is as follows:
	1 January - 31 December 2024	1 January - 31 December 2023
Interest income	326	174
Foreign exchange gains from financial activities, gross	210	47
Fair value gains on derivative financial instruments, net Reversal of ECL provision	- -	189 2
Other	455	199
	991	611
Breakdown of financial expenses is as follows:
	1 January - 31 December 2024	1 January - 31 December 2023

FINANCIAL INCOME/ EXPENSES
Breakdown of financial income is as follows:
	1 January - 31 December 2024	1 January - 31 December 2023
Interest income	326	174
Foreign exchange gains from financial activities, gross	210	47
Fair value gains on derivative financial instruments, net	-	189
Reversal of ECL provision	-	2
Other	455	199
Breakdown of financial expenses is as follows:
	1 January -	1 January -
	31 December 2024	31 December 2023
Foreign exchange losses on financial
activities, gross (*)	614	320
Interest expense from leasing liabilities	457	448
Fair value losses on derivative financial instruments, net	238	-
Interest expense from financial activities	86	88
Interest expenses on employee benefits Rediscount interest expense from repayments of aircraft,	55	22
net	44	16
Aircraft financing expenses	23	24
Other	11	13
	1,528	931
(*) As of 31 December 2024, gross foreign exchange losses included in financial expenses mainly consist of foreign exchange losses arising from borrowings and lease obligations.
TAX ASSETS AND LIABILITIES
Tax liability and tax expense are as follows:
	31 December 2024	31 December 2023
Provisions for corporate tax	47	59
Prepaid taxes and funds	(76)	(61)
Corporate tax liability	(29)	(2)

31. TAX ASSETS AND LIABILITIES

31 December 2024	31 December 2023
(29)	(2)

Tax liability and tax expense are as follows:
	31 December 2024	31 December 2023
Corporate tax liability As of 31 December 2023, the Group has decreased Current Period Tax Related Assets recognized in Current Assets by USD 39 and decreased Current Period Profit Tax Liability recognized in Current Liabilities by the same amount.	(29)	(2)
	1 January - 31 December 2024	1 January - 31 December 2023
Current year tax (expense)	(387)	(66)
Deferred tax income	165	2,446

31. TAX ASSETS AND LIABILITIES (cont'd)

For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 31. TAX ASSETS AND LIABILITIES (cont'd)	Notes to the Consolidated Financial Statements		TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Tax effect related to other comprehensive income is as follows:		1 January - 31 December 2024			1 January - 31 December 2023
	Amount	Tax (expense) /	Amount	Amount	Tax (expense) /	Amount
	before tax	income	after tax	before tax	income	after tax
Changes in foreign currency translation
difference	7	-	7	73	-	73
Losses on Remeasuring FVOCI Change in actuarial	(3)	1	(2)	35	(7)	28
losses from retirement pay obligation	(12)	2	(10)	(56)	10	(46)
Change in cash flow hedge reserve	436	(98)	338	(287)	60	(227)
Other comprehensive income	428	(95)	333	(235)	63	(172)

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.

Türkiye started to adopt the OECD's Global Minimum Complementary Corporate Tax regulations (Pillar 2) with a Bill submitted to the Grand National Assembly of Türkiye on 16.07.2024. These regulations entered into force with the Law No. 7524 published in the Official Gazette No. 32620 dated 02.08.2024. The Turkish practice is broadly in line with the OECD's Pillar 2 Model Rules, with similarities in scope, exemptions, consolidation, tax calculations and filing periods. The secondary regulation on calculation details and implementation methodology has not yet been published, while specific issues such as Türkiye's unique circumstances and existing incentives are expected to be clarified by the Ministry's secondary legislation. These amendments did not have a significant impact on the financial position or performance of the Group.

Furthermore, Article 32/C titled "Domestic minimum corporate tax" has been added to the Corporate Tax Law with Article 36 of Law No. 7524. According to this regulation regarding the application of the domestic minimum corporate tax, the corporate tax calculated within the framework of Articles 32 and 32/A will not be less than 10% of the corporate income before the application of discounts and exemptions. The said regulation entered into force on the date of its publication to be applied to corporate earnings for the taxation period of 2025. Corporate Tax General Communiqué Serial No. 23 was published in the Official Gazette dated 28.09.2024 and numbered 32676.

31. TAX ASSETS AND LIABILITIES (cont'd)

Deferred Tax

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 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 December 2024	31 December 2023
Deferred tax asset	402	332
Deferred tax liability	(65)	(50)
Deferred tax asset	337	282
	31 December 2024	31 December 2023
Deferred income and prepaid expenses	188	254
Expense and income accruals Fixed assets	112	135
Provisions for employee benefits	97 57	(284) 50
Miles accruals	45	34
Provisions for unused vacation	23	11
Lease liabilities (net) (*)	16	14
Other receivables	3	59
Carry forward tax losses	2	230
Change in fair value of derivative instruments	(20)	(77)
Adjustments for passenger flight liabilities	(189)	(144)
Other	3	-
Deferred tax asset	337	282
(*) The related amount includes the effects of lease liabilities and right of use assets on deferred tax assets and liabilities.
The changes of deferred tax (asset) / liability for the year ended 1 January – 31 December 2024 and 2023 are as follows:
	1 January - 31 December 2024	1 January - 31 December 2023
Opening balance at 1 January	282	(2,218)
Deferred tax income	165	2,446
Tax income of actuarial losses on
retirement pay obligation	2	10
Tax income / (expense) from FVOCI	1	(7)
Foreign currency translation difference	(15)	111

Lease liabilities (net) (*)
	16	14
Other receivables	3	59
Carry forward tax losses	2	230
Change in fair value of derivative instruments	(20)	(77)
Adjustments for passenger flight liabilities	(189)	(144)
Other	3	-
Deferred tax asset	337	282
(*) The related amount includes the effects of lease liabilities and right of use assets on deferred tax assets and liabilities. The changes of deferred tax (asset) / liability for the year ended 1 January – 31 December 2024 and 2023
are as follows:
	1 January -	1 January -
Opening balance at 1 January	31 December 2024	31 December 2023
	282	(2,218)
Deferred tax income Tax income of actuarial losses on	165	2,446
retirement pay obligation	2	10
Tax income / (expense) from FVOCI	1	(7)
Foreign currency translation difference Tax (expense) from hedging reserves	(15) (98)	111 (60)

31. TAX ASSETS AND LIABILITIES (cont'd)

Deferred Tax (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) TAX ASSETS AND LIABILITIES (cont'd) Deferred Tax (cont'd) The redemption schedule of carry forward tax losses, which are considered in deferred tax calculation, is as follows: Expired as of 2025
Expired as of 2026
Expired as of 2028

Deferred Tax (cont'd)
The redemption schedule of carry forward tax losses, which are considered in deferred tax calculation, is as follows:
	31 December 2024	31 December 2023
Reconciliation with current tax income / (charge) for the period 1 January – 31 December 2024 and 2023
are as follows:
	1 January -	1 January -
Reconciliation of effective tax charge	31 December 2024	31 December 2023
Profit from operations before tax	3,647	3,641
		(910)
Tax calculated with the effective tax rate	(912)
Taxation effects on:
- exception	347	248
- adjustment for prior year loss	232	-
- income from investment certificates	67	100
- foreign currency translation difference	60	25
- investments accounted by using the equity method	44	58
- deduction	16	1
- investment incentive	5	4
- income from inflation differences	-	3,043
- non deductible expenses	(37)	(127)
- effect of the change in the deferred tax rate	(44)	(62)
Tax (expense) / income in statement of profit	(222)	2,380

32. EARNINGS PER SHARE

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.

32. EARNINGS PER SHARE (cont'd)

Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
EARNINGS PER SHARE (cont'd) Number of total shares and calculation of profits / losses per share at 1 January – 31 December 2024 and 2023:
	1 January -	1 January -
	31 December 2024	31 December 2023
Number of shares outstanding at 1 January (in full)	137,995,202,955	138,000,000,000
Number of shares outstanding at 31 December (in full)	137,994,458,956	137,995,202,955
Weighted average number of shares outstanding during
the year (in full)	137,995,032,906	137,996,631,444
Net profit for the year	3,425	6,021
Basic earnings per share (Full US Cents) (*)	2.48	4.36
Diluted earnings per share (Full US Cents) (*)	2.48	4.36
(*) Basic and diluted earnings 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 December 2024, and 2023 are as follows:
Derivative financial assets	31 December 2024	31 December 2023
Derivative instruments not subject to hedge accounting	112	5
Derivative instruments for fuel prices
	4	4

33. DERIVATIVE FINANCIAL INSTRUMENTS

Weighted average number of shares outstanding during
(*) Basic and diluted earnings 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 December 2024, and 2023 are as follows:
Derivative financial assets	31 December 2024	31 December 2023
Derivative instruments not subject to hedge accounting	112	5
Derivative instruments for fuel prices cash flow hedge	4	4
Derivative instruments for interest rate
	3	9
cash flow hedge	119	18
Derivative financial liabilities	31 December 2024	31 December 2023
Derivative instruments not subject to hedge	21	75
accounting Derivative instruments for fuel prices cash flow hedge	13	15
Derivative instruments for cross currency rate cash flow hedge	3	10
Derivative instruments for interest rate cash flow hedge	-	1

(a) Capital risk management

NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (a) Capital risk management The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Group consists of debt, which includes the borrowings disclosed in Note 7, cash
and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings.
The Board of Directors of the Group periodically reviews the capital structure. During these analyses, the Board assesses the risks associated with each class of capital along with cost of capital. Based on the review of the Board of Directors, the Group aims to balance its overall capital structure through the issue of new debt or the redemption of existing debt. The overall strategy of the Group has not changed compared to 2023.
	31 December 2024	31 December 2023
Total debts (*)	1,895	2,435
Lease liabilities	11,966	11,812
Less: Cash and cash equivalents and time deposits with maturity of more than three months	(3,929)	(683)
Net debt (A)	9,932	13,564
Total shareholders' equity (B) Total capital stock (A+B)	19,314 29,246	15,563 29,127

(b) Financial Risk Factors

The risks of the Group, resulting from operations, include market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Group's risk management program generally seeks to minimize the potential negative effects of uncertainty in financial markets on financial performance of the Group. The Group uses a small portion of derivative financial instruments in order to safeguard itself from different financial risks.

Risk management is carried out in line with policies approved by the Board of Directors. According to risk policy, financial risk is identified and assessed. Working together with Group's operational units, relevant instruments are used to reduce the risk.

(b) Financial Risk Factors (cont'd)

b.1) Credit risk management

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 34. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)
(b) Financial Risk Factors (cont'd)
b.1) Credit risk management
			Receivables
	Trade receivables			Other receivables
	Related	Third	Related	Third	Deposits in	Derivative	Goverment Debt	Corporate Debt	Equity
31 December 2024	Party	Party	Party	Party	Banks	Instruments	Securities	Securities	Securities
Maximum credit risk as of balance sheet date (*)	43	862	21	2,611	3,928	119	262	1,798	17
-The part of maximum credit risk under guarantee with collateral etc. (**)	-	(180)	-	-	-	-	-	-	-
A. Net book value of financial assets that are
neither past due nor impaired	43	-	21	-	424	119	262	-	17
B. Net book value of financial assets that are renegotiated,
if not that will be accepted as past due or impaired	-	-	-	-	-	-	-	-	-
C. Net book value of financial assets that are past due but
not impaired	-	-	-	-	-	-	-	-	-
-The part under guarantee with collateral etc.	-	-	-	-	-	-	-	-	-
D. Net book value of impaired assets	-	887	-	2,611	3,504	-	-	1,798	-
-Past due (gross carrying amount)	-	341	-	-	-	-	-	-	-
-Impairment(-)	-	(103)	-	-	-	-	-	-	-
-The part of net value under guarantee with collateral etc.	-	-	-	-	-	-	-	-	-
-Not past due (gross carrying amount)	-	651	-	2,615	3,506	-	-	1,798	-
-Impairment (-)	-	(2)	-	(4)	(2)	-	-	-	-
-The part of net value under guarantee with collateral etc.	-	-	-	-	-	-	-	-	-
E.Off-balance sheet items with credit risk	-	-	-	-	-	-	-	-	-
(*)The guarantees that increase credit reliability are not included in the balance.

(b) Financial Risk Factors (cont'd)

b.1) Credit risk management (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
34. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)
(b) Financial Risk Factors (cont'd)
b.1) Credit risk management (cont'd)
	Trade receivables		Receivables	Other receivables
31 December 2023	Related Party	Third Party	Related Party	Third Party	Deposits in Banks	Derivative Instruments	Goverment Debt Securities	Corporate Debt Securities	Equity Securities
Maximum credit risk as of balance sheet date (*)	50	806	9	2,275	682	18	258	582	16
-The part of maximum credit risk under guarantee with collateral etc. (**)	-	(175)	-	-	-	-	-	-	-
A. Net book value of financial assets that are
neither past due nor impaired	50	-	9	-	99	-	258	-	16
B. Net book value of financial assets that are renegotiated,
if not that will be accepted as past due or impaired	-	-	-	-	-	-	-	-	-
C. Net book value of financial assets that are past due but
not impaired	-	-	-	-	-	-	-	-	-
-The part under guarantee with collateral etc.	-	-	-	-	-	-	-	-	-
D. Net book value of impaired assets	-	990	-	2,275	583	18	-	582	-
-Past due (gross carrying amount)	-	401	-	-	-	-	-	-	-
-Impairment(-)	-	(104)	-	-	-	-	-	-	-
-The part of net value under guarantee with collateral etc.	-	-	-	-	-	-	-	-	-
-Not past due (gross carrying amount)	-	695	-	2,278	585	18	-	582	-
-Impairment (-)	-	(2)	-	(3)	(2)	-	-	-	-
-The part of net value under guarantee with collateral etc.	-	-	-	-	-	-	-	-	-
E.Off-balance sheet items with credit risk	-	-	-	-	-	-	-	-	-
(*)The guarantees that increase credit reliability are not included in the balance.

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

(b) Financial Risk Factors (cont'd)

b.1) Credit risk management (cont'd)

34. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd) (b) Financial Risk Factors (cont'd) b.1) Credit risk management (cont'd) The risk of a financial loss for the Group due to failing of one of the parties of the contract to meet its obligations is defined as credit risk. The Group's credit risk is related to its receivables, cash and derivative financial assets. The balance shown in the consolidated balance sheet is the result of the net amount after deducting the doubtful receivables arisen from the Group management's forecasts based on previous experience and current economy conditions. Since the customers are diversified, the Group's credit risk is dispersed and there is no material credit risk concentration. The aging of past due receivables as of 31 December 2024 are as follows: Receivables Deposits in Derivative
Trade Receivables Other Receivables Banks Instruments 31 December 2024 Other	Total
- - - - Past due 1-30 days 152	152
- - - - Past due 1-3 months 15	15
- - - - Past due 3-12 months 35	35
- - - - Past due 1-5 years 139	139
- - - - Total past due receivables 341	341
180 - - - - The part under guarantee with collateral etc.	180

(b) Financial Risk Factors (cont'd)

b.1) Credit risk management (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
34. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)
(b) Financial Risk Factors (cont'd)
b.1) Credit risk management (cont'd)
The aging of past due receivables as of 31 December 2023 are as follows:
	Receivables
31 December 2023	Trade Receivables	Other Receivables	Deposits in Banks	Derivative Instruments	Other	Total
Past due 1-30 days	135	-	-	-	-	135
Past due 1-3 months	27	-	-	-	-	27
Past due 3-12 months	106	-	-	-	-	106
Past due 1-5 years	133	-	-	-	-	133
Total past due receivables	401	-	-	-	-	401

(b) Financial Risk Factors (cont'd)

b.1) Credit risk management (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
34. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)
Financial Risk Factors (cont'd)
b.1) Credit risk management (cont'd)
The details of credit ratings of banks in which the Group has deposits as of 31 December 2024 are as
Equivalent to External	Weighted Average	Gross Carrying	Impairment Loss
Credit Rating	Lost Rate	Amount	Allowance
AA2	0.04%	2,677	4
BA3	0.22%	4,786	2
B2	1.93%	240	-
		7,703	6
The aging of financial assets as of 31 December 2024 are as follows:
Maturity Ranges As of 31.12.2024	Weighted Average Lost Rate	Gross Carrying Amount	Impairment Loss Allowance

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
34. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)
(b) Financial Risk Factors (cont'd)
b.1) Credit risk management (cont'd)
The details of credit ratings of banks in which the Group has deposits as of 31 December 2024 are as
Equivalent to External Credit Rating	Weighted Average Lost Rate	Gross Carrying Amount	Impairment Loss Allowance
The aging of financial assets as of 31 December 2024 are as follows:
Maturity Ranges As of 31.12.2024	Weighted Average Lost Rate	Gross Carrying Amount	Impairment Loss Allowance
Current	0.24%	651-	2
1-30 days past due	0.37%	152-	- 1
30-90 days past due	2.52%	15 -	- -
90-360 days past due	3.22%	35-	- 1
More than 1 year past due	1.16%	34	- -
		887	4
The details of credit ratings of banks in which the Group has deposits as of 31 December 2023 are as
Equivalent to External Credit Rating	Weighted Average Lost Rate	Gross Carrying Amount	Impairment Loss Allowance
AA2	0.04%	1,893	3
BA3	0.22%	5,236	3
B2	1.93%	220	-
		7,349	6
The aging of financial assets as of 31 December 2023 are as follows:
Maturity Ranges	Weighted Average	Gross Carrying	Impairment Loss

Equivalent to External	Weighted Average	Gross Carrying	Impairment Loss
Credit Rating	Lost Rate	Amount	Allowance

The details of credit ratings of banks in which the Group has deposits as of 31 December 2023 are as
Equivalent to External	Weighted Average	Gross Carrying	Impairment Loss
Credit Rating	Lost Rate	Amount	Allowance
The aging of financial assets as of 31 December 2023 are as follows:
Maturity Ranges	Weighted Average	Gross Carrying	Impairment Loss
As of 31.12.2023	Lost Rate	Amount	Allowance
Current	0.31%	695	2
1-30 days past due	0.62%	135	1
30-90 days past due	3.69%	27	1
90-360 days past due	3.32%	106	4
More than 1 year past due	1.13%	27	-
		990	8
As of balance sheet date, total amount of cash collateral and letter of guarantee received by Group for past due and not impaired receivable is USD 180 (31 December 2023: USD 175).
As of the balance sheet date, the Group has no guarantee for past due receivables for which provisions were

b.2) Impairment

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
34. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)
(b) Financial Risk Factors (cont'd)
b.2) Impairment
Provisions for doubtful trade receivables consist of provisions for receivables in legal dispute and provisions calculated based on experiences on uncollectible receivables. Changes in provisions for doubtful receivables for the years ended 31 December 2024 and 2023 are as
follows:
	1 January -	1 January -
	31 December 2024	31 December 2023
Opening Balance Charge for the year	106 2	102
Currency translation adjustment	1	7
Collections during the year	(1)	3 (3)
(Reversal) for ECL	(3)	(3)

b.3) Liquidity risk management

The main responsibility for liquidity risk management rests with the Board of Directors. The Board designed an appropriate risk management policy for short, medium and long term funding and liquidity necessities of the Group management. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

Liquidity risk table:

31 December 2024

flows and matching the maturity profiles of financial assets and liabilities.					necessities of the Group management. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash
The tables below demonstrate the maturity distribution of nonderivative financial liabilities and are prepared based on the earliest date on which the Group can be required to pay. The interests that will be paid on the future liabilities are included in the related maturities.
Group manages liquidity risk by keeping under control estimated and actual cash flows and by maintaining adequate funds and borrowing reserves through matching the maturities of financial assets and liabilities.
Liquidity risk table:
31 December 2024
Due date on the contract	Book value	Total cash outflow according to the contract (I+II+III+IV)	Less than 3 months (I)	3-12 months (II)	1-5 years (III)	More than 5 years (IV)
Non-derivative financial liabilities
Bank borrowings	1,895	(1,902)	(1,090)	(798)	(11)	(3)
Lease liabilities Trade payables	11,966 1,494	(13,972) (1,514)	(593) (1,514)	(1,600) -	(6,223) -	(5,556) -
	15,355	(17,388)	(3,197)	(2,398)	(6,234)	(5,559)

(b) Financial Risk Factors (cont'd)

31 December 2023

Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
34. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)
(b) Financial Risk Factors (cont'd)
b.3) Liquidity risk management (cont'd)
31 December 2023
		Total cash outflow according to the
Due date on the contract	Book value	contract (I+II+III+IV)	Less than 3 months (I)	3-12 months (II)	1-5 years (III)	More than 5 years (IV)
Non-derivative financial liabilities
Bank borrowings	2,435	(2,515)	(1,261)	(756)	(483)	(15)
Lease liabilities	11,812	(13,816)	(562)	(1,579)	(6,505)	(5,170)
Trade payables	1,291	(1,307)	(1,307)	-	-	-
Total	15,538	(17,638)	(3,130)	(2,335)	(6,988)	(5,185)
31 December 2024		Total cash outflow according to the
Due date on the contract	Book value	contract (I+II+III+IV)	Less than 3 months (I)	3-12 months (II)	1-5 years (III)	More than 5 years (IV)
Derivative financial (liabilities) / assets, net
Derivative cash inflows Derivative cash	119	91	31	34	26	-
outflows	(37)	(9)	(3)	(6)	-	-
Derivative cash inflows/outflows,net		82 82	28	28	26	-
31 December 2023		Total cash outflow according to the
Due date on the contract	Book value	contract (I+II+III+IV)	Less than 3 months (I)	3-12 months (II)	1-5 years (III)	More than 5 years (IV)
Derivative financial (liabilities) / assets, net
Derivative cash inflows Derivative cash	18	8	-	-	8	-
outflows	(101)	(91)	(12)	(78)	(1)	-

b.4) Market risk management

The Group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and jet fuel prices. Market risk exposures of the Group are evaluated using sensitivity analysis. There has been no change in the Group's exposure to market risks or the manner in which it manages and measures the risk.

b.4) Market risk management (cont'd)

b.4.1) Foreign currency risk management

34. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd) (b)Financial Risk Factors (cont'd) b.4) Market risk management (cont'd) b.4.1) 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 December 2024
	USD EQUIVALENT	TL	EUR	JPY	CHF	OTHER
1.Trade Receivables	834	269	131	12	10	412
2a.Monetary Financial Assets (**)	5,950	3,548	2,240	94	3	65
2b.Non Monetary Financial Assets	-	-	-	-	-	-
3.Other	709	278	225	3	8	195
4.Current Assets (1+2+3)	7,493	4,095	2,596	109	21	672
5.Trade Receivables	-	-	-	-	-	-
6a.Monetary Financial Assets	-	-	-	-	-	-
6b.Non Monetary Financial Assets	-	-	-	-	-	-
7.Other	631	420	201	-	-	10
8.Non Current Assets (5+6+7) 9.Total Assets (4+8)	631 8,124	420 4,515	201 2,797	- 109	- 21	10 682
10.Trade Payables	1,064	730	265	7	2	60
11.Financial Liabilities (*)	2,964	22	2,562	292	48	40
12a.Other Liabilities, Monetary	1,168	882	198	3	4	81
12b.Other Liabilities, Non Monetary	-	-	-	-	-	-
13.Current Liabilities (10+11+12)	5,196	1,634	3,025	302	54	181
14.Trade Payables	-	-	-	-	-	-
15.Financial Liabilities (*)	7,588	65	5,267	1,576	290	390
16a.Other Liabilities, Monetary	247	247	-	-	-	-
16b.Other Liabilities, Non Monetary	-	-	-	-	-	-
17.Non Current Liabilities (14+15+16)	7,835	312	5,267	1,576	290	390
18.Total Liabilities (13+17)	13,031	1,946	8,292	1,878	344	571
19.Net asset / liability position of off balance sheet derivatives (19a-19b)	1,713	95	1,618	-	-	-
19a.Off-balance sheet foreign currency derivative assets 19b.Off-balance sheet foreign currency	-	-	-	-	-	-
derivative liabilities	(1,713)	(95)	(1,618)	-	-	-
20.Net foreign currency asset/(liability) position (9-18-19)	(6,620)	2,474	(7,113)	(1,769)	(323)	111
21.Net foreign currency asset / liability position of monetary items (IFRS 7.B23) (=1+2a+5+6a-10-11-12a -14-15-16a)	(6,247)	1,871	(5,921)	(1,772)	(331)	(94)
22.Fair value of foreign currency
hedged financial assets	-	-	-	-	-	-
23.Hedged foreign currency assets	-	-	-	-	-	-
24.Hedged foreign currency liabilities	7,801	-

(*) Net foreign exchange position of the Group is mainly due to long term foreign currency borrowings denominated in Euro, Japanese Yen and Swiss Franc to fund its aircraft investments. The Group uses these long-term foreign currency borrowings to manage the risk of exchange differences with highly probable future foreign currency revenues. The USD equivalent of these borrowings amounts to USD 7,801 as of 31 December 2024 (31 December 2023: USD 8,286).

(**) EUR amount equivalent to USD 674 represents the currency protected time deposit (31 December 2023: 3,540)

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

(b)Financial Risk Factors (cont'd)

b.4) Market risk management (cont'd)

b.4.1) Foreign currency risk management (cont'd)

34. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd) (b)Financial Risk Factors (cont'd) b.4) Market risk management (cont'd) b.4.1) Foreign currency risk management (cont'd) 1.Trade Receivables 2a.Monetary Financial Assets 2b.Non Monetary Financial Assets 3.Other 4.Current Assets (1+2+3) 5.Trade Receivables 6a.Monetary Financial Assets 6b.Non Monetary Financial Assets 7.Other 8.Non Current Assets (5+6+7) 9.Total Assets (4+8) 10.Trade Payables 11.Financial Liabilities (*) 12a.Other Liabilities, Monetary 12b.Other Liabilities, Non Monetary 13.Current Liabilities (10+11+12)	USD EQUIVALENT 929 5,215 - 655 6,799 - - - 833 833	TL 193 835 - 227 1,255 - - -	31 December 2023 EUR 82 4,302 - 174 4,558 -	JPY 7 6 - 1 14	CHF 12 2 -	OTHER 635 70
						- 247
					6 20	952
				-	-	-
			-	-	-	-
			-	-	-	-
		613	210	-	-	10
		613	210	-	-	10
	7,632	1,868	4,768	14	20	962
	1,078	735	281	2	2	58
	3,395	1	2,991	378	25	-
	751	407	278	2	5	59
	55	55	-	-	-	-
	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 8,342	229 282	- 6,409	- 1,577	- 64	- 10
17.Non Current Liabilities (14+15+16) 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 asset/(liability) position (9-18-19)	(10,164)	388	(9,366)	(1,945)	(76)	835
21.Net foreign currency asset / liability	(7,193)	(168)	(5,575)	(1,946)	(82)	578
position of monetary items (IFRS 7.B23) (=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	-

(b)Financial Risk Factors (cont'd)

b.4) Market risk management (cont'd)

b.4.1) 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 December 2024
	Profit / (Loss)
	Before Tax		Equity
	If foreign currency	If foreign currency	If foreign currency	If foreign currency
	appreciated	depreciated	appreciated	depreciated
	10 %	10 %	10 %	10 %
1- TL net asset / liability	247	(247)	-	-
2- Part hedged from TL risk (-)	-	-	-	-
3- TL net effect (1+2)	247	(247)	-	-
4- Euro net asset / liability	(711)	711	(566)	566
5- Part hedged from Euro risk (-)	566	(566)	-	-
6- Euro net effect (4+5)	(145)	145	(566)	566
7- JPY net asset / liability	(177)	177	(137)	137
8- Part hedged from JPY risk (-)	137	(137)	-	-
9- JPY net effect (7+8)	(40)	40	(137)	137
10- CHF net asset / liability	(32)	32	(34)	34
11- Part hedged from CHF risk (-)	34	(34)	-	-
12- CHF net effect (10+11)	2	(2)	(34)	34
13- Other foreign currency net asset / liability	11	(11)	(43)	43
14- Part hedged other foreign currency risk (-)	43	(43)	-	-
15- Other foreign currency net effect (13+14)	54	(54)	(43)	43
TOTAL (3 + 6 + 9 + 12 + 15)	118	(118)	(780)	780

b.4) Market risk management (cont'd)

b.4.1) Foreign currency risk management (cont'd)

(b)Financial Risk Factors (cont'd)
b.4) Market risk management (cont'd)
b.4.1) Foreign currency risk management (cont'd)
	Profit / (Loss)	31 December 2023
	Before Tax		Equity
	If foreign currency appreciated 10 %	If foreign currency depreciated 10 %	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)	-	-
4- Euro net asset / liability	(937)	937	(654)	654
5- Part hedged from Euro risk (-)	654	(654)	-	-
6- Euro net effect (4+5)	(283)	283	(654)	654
7- JPY net asset / liability	(194)	194	(165)	165
8- Part hedged from JPY risk (-)	165	(165)	-	-
9- JPY net effect (7+8)	(29)	29	(165)	165
10- CHF net asset / liability	(8)	8	(9)	9
11- Part hedged from CHF risk (-)	9	(9)	-	-
12- CHF net effect (10+11)	1	(1)	(9)	9
13- Other foreign currency net asset / liability	84	(84)	-	-
14- Part hedged other foreign currency risk (-)	-	-	-	-
15- Other foreign currency net effect (13+14)	84	(84)	-	-
TOTAL (3 + 6 + 9 + 12 + 15)	(188)	188	(828)	828

b.4.2) Interest rate risk management

The Group has been borrowing at both fixed and floating interest rates. Considering the interest conditions of the current borrowings, the majority of the borrowings are at floating interest rates. In addition to this; under the condition that the cost of financing of aircraft purchases are reasonable, the Group has been trying to increase the amount of the fixed interest rate borrowings in order to create a partial balance between the fixed and floating interest rate borrowings. Due to the fact that the floating interest rates of the Group are dependent on Sofr and Euribor, exposure to local interest rate is low.

b.4.2) Interest rate risk management (cont'd)

Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
34. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)
(b)Financial Risk Factors (cont'd)
b.4) Market risk management (cont'd)
b.4.2) Interest rate risk management (cont'd)
	31 December 2024	31 December 2023
Instruments with fixed interest rate
Financial Liabilities	6,668	6,349
Financial Instruments with Variable Interest Rate
Financial Liabilities	5,298	5,463
Interest Swap Agreements Subject to
		8

Interest rate sensitivity

The following sensitivity analysis are done considering the interest rate exposure in the reporting date and possible changes on this rate and are fixed during all reporting period. Group management checks out possible effects that may arise when Sofr and Euribor rates, which are the basis for floating interest rates, fluctuate 0.5% and reports the effects to the top management.

Assuming that there is a 0.5% increase in Sofr and Euribor interest rates and all other floatings are kept constant:

Current profit before tax of the Group for the year will decrease by USD 27 (For the year ended 31 December 2023 profit before tax will decrease by USD 32). In contrast, if Sofr and Euribor interest rate decrease by 0.5%, profit before tax will increase by the same amounts.

Moreover, as a result of the interest rate swap contracts against cash flow risks, in the event of a 0.5% increase in the Sofr and Euribor interest rates, the shareholders' equity of the Group will be affected less then USD 1, excluding the deferred tax effect. (For the year ended 31 December 2023 the shareholders' equity of the Group will increase by USD 2, excluding the deferred tax effect.) In the event of a 0.5% decrease in the Sofr and Euribor interest rates, the shareholders' equity of the Group will decrease by the same amounts, excluding the deferred tax effect.

b.4.3) Fuel prices sensitivity

As explained in Note 35, Group has entered into forward fuel purchase contracts in order to hedge cash flow risks arising from fuel purchases. Due to forward fuel purchase contracts subject to hedge accounting, as a result of a 10% increase in fuel prices, the shareholders' equity of the Group will increase by USD 52, excluding the deferred tax effect. (For the year ended 31 December 2023, the shareholders' equity of the Group will increase by USD 43 excluding deferred tax effect.)

In case of a 10% decrease in fuel prices, the shareholders' equity of the Group will decrease by USD 54, excluding the deferred tax effect. (For the year ended 31 December 2023, the shareholders' equity of the Group will decrease by USD 44, excluding deferred tax effect.)

35. FINANCIAL INSTRUMENTS

Fair Values of Financial Instruments

Fair values of financial assets and liabilities are determined as follows:

• Under standard maturities and conditions, fair values of financial assets and liabilities traded in an active market are determined using quoted market prices.
• Fair values of derivative instruments:
• Fixed-paid/floating received interest swap contracts: Fair value hierarchy is level 2. Valuation is performed by using discounted cash flow technique. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties.
• Forward fuel purchase contracts and fuel collar contracts: Fair value hierarchy is level 2. Valuation is performed by using discounted cash flow technique. Future cash flows are estimated based on forward fuel prices (from observable forward fuel prices at the end of the reporting period) and contract fuel prices, discounted at a rate that reflects the credit risk of various counterparties.
• Forward currency contracts: Fair value hierarchy is level 2. Valuation is performed by using discounted cash flow technique. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.
• Cross-currency swap contracts: Fair value hierarchy is level 2. Valuation is performed by using discounted cash flow technique. Future cash flows are estimated based on forward interest rates and forward exchange rates (from observable yield curves and forward exchange rates at the end of the reporting period) and contract interest rates and forward exchange rates, discounted at a rate that reflects the credit risk of various counterparties.

35. FINANCIAL INSTRUMENTS (cont'd)

Fair Values of Financial Instruments (cont'd)

Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
35. FINANCIAL INSTRUMENTS (cont'd)
Fair Values of Financial Instruments (cont'd)
				Financial instruments
	Financial assets	Financial instruments	Financial instruments	FVOCI	Financial liabilities
31 December 2024	at amortized cost	at FVOCI	at FVTPL	at cost value	at amortized cost	Book Value	Note
Financial Assets
Cash and cash equivalents	2,721	-	-	-	-	2,721	5
Financial investments and
derivative financial instruments	-	2,067	2,510	1	-	4,578	6 and 33
Trade receivables	905	-	-	-	-	905	8 and 9
Other receivables	2,632	-	-	-	-	2,632	8 and 11
Financial liabilities
Bank borrowings	-	-	-	-	1,895	1,895	7 and 17
Lease liabilities	-	-	-	-	11,966	11,966	7 and 17
Other financial liabilities and derivative financial instruments	-	16	21	-	-	37	33

35. FINANCIAL INSTRUMENTS (cont'd)

Fair Values of Financial Instruments (cont'd)

Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
35. FINANCIAL INSTRUMENTS (cont'd)
Fair Values of Financial Instruments (cont'd)
				Financial instruments
31 December 2023	Financial assets at amortized cost	Financial instruments at FVOCI	Financial instruments at FVTPL	FVOCI at cost value	Financial liabilities at amortized cost	Book Value	Note
Financial Assets
Cash and cash equivalents Financial investments and	683	-	-	-	-	683	5
derivative financial instruments	-	853	4,906	1	-	5,760	6 and 33
Trade receivables	856	-	-	-	-	856	8 and 9
Other receivables	2,284	-	-	-	-	2,284	8 and 11
Financial liabilities
Bank borrowings	-	-	-	-	2,435	2,435	7 and 17
Lease liabilities	-	-	-	-	11,812	11,812	7 and 17
Other financial liabilities and
	-	26	75	-	-	101	33
derivative financial instruments Trade payables	-	-	-	-	1,291	1,291	8 and 9

Fair Values of Financial Instruments (cont'd)

• 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. These assets and liabilities consist of derivate transactions' fair values which is include such as fuel prices, foreign currency changes and interest rates in the market.
• Level 3: Variables which are not related to observable market variable for assets and liabilities (unobservable variables).

Fair Values of Financial Instruments (cont'd)
Fair values of financial assets and liabilities are determined 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. These assets and liabilities consist of derivate transactions' fair values which is include such as fuel prices, foreign currency changes and interest rates in the market.
 Level 3: Variables which are not related to observable market variable for assets and liabilities (unobservable variables).
Financial assets and liabilities, measured at their fair values are classified as below:
			Fair value level
			as of the reporting date
		Level 1	Level 2	Level 3
Financial assets	31 December 2024	USD	USD	USD
Financial assets on remeasuring FVOCI	2,060	2,060	-	-
Financial assets on
remeasuring FVTPL	17	17	-	-
Derivative instruments at fair value through profit or loss	112	-	112	-
Derivative instruments accounted for hedge accounting	7	-	7	-
Total	2,196	2,077	119	-
Financial liabilities
Derivative instruments at
fair value through profit or loss	21	-	21	-
Derivative instruments accounted	16	-	16	-
for hedge accounting

35. FINANCIAL INSTRUMENTS (cont'd)

Fair Values of Financial Instruments (cont'd)

Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
35. FINANCIAL INSTRUMENTS (cont'd)
Fair Values of Financial Instruments (cont'd)
			Fair value level
			as of the reporting date
	31 December 2023	Level 1 USD	Level 2 USD	Level 3 USD
Financial assets
Financial assets on remeasuring FVOCI	840	840	-	-
Financial assets on remeasuring FVTPL	16	16	-	-
Derivative instruments at fair value through profit or loss	5	-	5	-
Derivative instruments accounted for hedge accounting	13	-	13	-
Total	874	856	18	-
Financial liabilities
Derivative instruments at fair value through profit or loss	75	-	75	-
Derivative instruments accounted for hedge accounting	26	-	26	-
Total	101	-	101	-

Derivative Instruments and Hedging Transactions

The financial risk management strategy of the Group aims to ensure a healthy cash flow and liquidity in the future. For this purpose, derivative financial instruments such as currency forwards, currency options, interest rate swaps, interest rate options, oil options and oil swaps are used to protect against the financial risks arising from the fluctuation of exchange rates, interest rates and jet fuel price.

The floating-rate financial liabilities of the Group are explained in Note 34 b.4.2. In order to keep interest costs at an affordable level, the Group has hedged approximately 12% of floating rate USD, JPY, CNY and Euro denominated liabilities arising from financial leasing activities. Effective part of the change in the fair values of those derivative instruments for cash flows risks of floating-rate finance lease liabilities are recognized in other comprehensive income and presented in cash flow hedge reserve under the shareholders' equity, in accordance with hedge accounting.

Within the scope of the financial risk management strategy, the Group started fuel price risk hedging in 2009, in order to manage the cash flow effect that may arise from the fluctuation of the fuel price. Fuel price risk management strategy was updated several times over the years with the experience gained. In accordance with the Group's latest BOD resolution issued on 14 July 2017, hedging transactions are executed for the tenor of at most 24 months and up to 60% of the forecasted fuel consumption of the following month. Also with this resolution, premium paid options have been included to the instrument list for the first time, in addition to formerly used swap and zero-cost option structures. The tenor, ratio and instrument to-be-used are chosen based on the current market conditions and future expectations. As a result of these changes, hedging strategy has become more flexible and accommodative to fuel market conditions. It is aimed to either fix the fuel price or keep it in a restrained range. The effective portion of fair value of fuel hedge contracts for cash flow hedge is recognized in other comprehensive income and presented in cash flow hedge reserve under the shareholders' equity, in accordance with hedge accounting.

Derivative Instruments and Hedging Transactions (cont'd)

The mismatch between Group's income and expense currencies causes to the exchange rate risk. In order to manage this risk resulted from the fluctuations of the FX market, the Group started to implement exchange rate risk hedging in 2013. Exchange rate risk management strategy of the Group was updated in 2015 and 2018 as a result of the gained experience and the needs. In order to manage this risk resulted from the fluctuations of the FX market, the Group started to implement exchange rate risk hedging. Since the Group is short in JPY, strategy mainly aims to decrease the amount of short position in JPY with the long position in USD via the derivative instruments. Only forwards are used for USD/JPY transactions. Other derivative instruments can be used in accordance with the market conditions, especially zero-cost option structures. In accordance with the strategy, current market conditions and future expectations are analyzed dynamically, and the hedge tenor, ratio and instrument to be used are determined accordingly. With these transactions, the Company aims to fix the exchange rate at a single level or to keep it within a certain range. The effective portion of fair value of currency hedge contracts for cash flow hedge is recognized in other comprehensive income and presented in cash flow hedge reserve under the shareholders' equity, in accordance with hedge accounting. value Total

Derivative Instruments Accounted in Assets and Liabilities

effective portion of fair value of currency hedge contracts for cash flow hedge is recognized in other comprehensive income and presented in cash flow hedge reserve under the shareholders' equity, in accordance with hedge accounting. As of 2024, financial lease liabilities in Japanese Yen, Swiss Franc, Chinese Yuan 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 Chinese Yuan, Euro and Swiss Franc fully
covered borrowings of such foreign currency while Japanese Yen revenue covered %73 of borrowings. In this context, exchange differences arising from such these loans repayment are taken to equity and recognized in other comprehensive income.
Group's derivative instruments arising from transactions stated above and their balances as of 31 December 2024 and 2023 are as follows:
Derivative Instruments Accounted in Assets and Liabilities
31 December 2024	Positive fair value	Negative fair value	Total
Fixed-paid/floating received interest rate swap
contracts for hedging against cash flow risks of
interest rate	3	-	3
Forward fuel purchase contracts for hedging against
cash flow risk of fuel prices Collar contracts for hedging against cash flow risk of	-	-	-
fuel prices	4	(13)	(9)
Forward currency contracts for hedging purposes	-	(3)	(3)
Fair values of derivative instruments for hedging
purposes	7	(16)	(9)
Cross-currency swap contracts not subject to hedge accounting	-	-	-
Interest rate swap contracts not subject to hedge accounting	-	-	-
Forward currency contracts not for hedging purposes	112	(21)	91
Fair values of derivative instruments not for hedging
	112	(21)	91
purposes
Total	119	(37)	82

Derivative Instruments and Hedging Transactions (cont'd)

Derivative Instruments Accounted in Assets and Liabilities (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
35. FINANCIAL INSTRUMENTS (cont'd)
Derivative Instruments and Hedging Transactions (cont'd)
Group's derivative instruments arising from transactions stated above and their balances as of 31 December 2024 and 2023 are as follows (cont'd):
Derivative Instruments Accounted in Assets and Liabilities (cont'd)
31 December 2023		Positive fair value	Negative fair value	Total
Fixed-paid/floating received interest rate swap contracts for hedging against cash flow risks of		9	(1)	8
interest rate
Forward fuel purchase contracts for hedging against cash flow risk of fuel prices		-	-	-
Collar contracts for hedging against cash flow risk of
fuel prices Forward currency contracts for hedging purposes		4 -	(15) (10)	(11) (10)
Fair values of derivative instruments for hedging
purposes Cross-currency swap contracts not subject to hedge		13	(26)	(13)
accounting		-	-	-
Interest rate swap contracts not subject to hedge
accounting Forward currency contracts not for hedging purposes		- 5	- (75)	- (70)
Fair values of derivative instruments not for hedging
purposes Total		5 18	(75) (101)	(70) (83)
Derivative Instruments Accounted in the Equity
31 December 2024	Hedging against fuel risk	Hedging against interest risk	Hedging against currency risk	Total
Fair values of derivative instruments for hedging purposes Ineffecient part in the risk elimination of	(9)	3	(3)	(9)
fair value of hedging gains of fuel hedging derivative instrument to financial revenues	-	-	-	-

Derivative Instruments Accounted in the Equity

Cross-currency swap contracts not subject to hedge
Interest rate swap contracts not subject to hedge
Fair values of derivative instruments not for hedging
Total		18	(101)	(83)
Derivative Instruments Accounted in the Equity
31 December 2024	Hedging against fuel risk	Hedging against interest risk	Hedging against currency risk	Total
Fair values of derivative instruments for
hedging purposes	(9)	3	(3)	(9)
Ineffecient part in the risk elimination of fair value of hedging gains of fuel hedging derivative instrument to financial
revenues	-	-	-	-
Ineffecient part in the risk elimination of fair value of hedging gains of currency hedging derivative instrument to financial
revenues	-	-	810	810
Total	(9)	3	807	801
Deferred tax	2	(1)	(182)	(181)
Hedge reserve as of 31 December 2024	(7)	2	625	620

Derivative Instruments and Hedging Transactions (cont'd)

Derivative Instruments Accounted in the Equity (cont'd)

For the Year Ended 31 December 2024 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
35. FINANCIAL INSTRUMENTS (cont'd)
Derivative Instruments and Hedging Transactions (cont'd)
Group's derivative instruments arising from transactions stated above and their balances as of 31 December 2024 and 2023 are as follows (cont'd):
Derivative Instruments Accounted in the Equity (cont'd)
31 December 2023	Hedging against fuel	Hedging against interest	Hedging against
Fair values of derivative instruments for	risk	risk	currency risk	Total
hedging purposes Ineffecient part in the risk elimination of fair value of hedging gains of fuel	(11)	8	(10)	(13)
hedging derivative instrument to financial revenues Ineffecient part in the risk elimination of fair value of hedging gains of currency	-	-	-	-
hedging derivative instrument to
financial revenues Total	- (11)	- 8	369 359	369 356
Deferred tax	2	(2)	(75)	(75)
Hedge reserve as of 31 December 2023	(9)	6	284	281
FEES FOR SERVICES RECEIVED FROM INDEPENDENT AUDITOR/INDEPENDENT AUDIT FIRMS The Group's explanation regarding the fees for the services received from the independent audit firms, which is based on the letter of POA dated August 19, 2021, the preparation principles of which are based on the Board Decision published in the Official Gazette on March 30, 2021, are as follows (Thousand USD):
		31 December 2024		31 December 2023
			908	292
Audit and assurance fee			103	-
Tax consulting fee
Other assurance services fee			16	8

36. FEES FOR SERVICES RECEIVED FROM INDEPENDENT AUDITOR/INDEPENDENT AUDIT FIRMS

fair value of hedging gains of currency
hedging derivative instrument to
FIRMS The Group's explanation regarding the fees for the services received from the independent audit firms, which is based on the letter of POA dated August 19, 2021, the preparation principles of which are based on the Board Decision published in the Official Gazette on March 30, 2021, are as follows (Thousand USD):
	31 December 2024	31 December 2023
Audit and assurance fee	908		292
Tax consulting fee	103		-
Other assurance services fee	16		8

37. EVENTS AFTER THE BALANCE SHEET DATE

None.