TÜRK HAVA YOLLARI A.O.

Interim / Quarterly Report • Aug 5, 2025

Condensed Consolidated Interim Financial Statements As at and For The Six-Month Period Ended 30 June 2025

REPORT ON REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

To the Board of Directors of Türk Hava Yolları Anonim Ortaklığı

Introduction

We have reviewed the accompanying condensed consolidated interim statement of financial position of Türk Hava Yolları Anonim Ortaklığı (the "Company") and its subsidiaries (collectively referred as the "Group") as at 30 June 2025 and the related condensed consolidated interim statement of profit or loss and other comprehensive income, condensed consolidated interim statement of changes in equity and condensed consolidated interim statement of cash flows for the six month period then ended and other explanatory information. Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with International Accounting Standard 34, "Interim Financial Reporting" ("IAS 34"). Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of interim financial information performed by the independent auditor of the entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information is not prepared, in all material respects, in accordance with IAS 34.

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

Muratcan Aksoy, SMMM Independent Auditor

Istanbul, 5 August 2025

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Financial Position as at 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)

	(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
		Reviewed	Audited
ASSETS	Notes	30 June 2025	31 December 2024
Non-Current Assets
Financial Investments	6	1,388	1,113
Other Receivables
-Related Parties	8	13	12
-Third Parties	9	1,419	1,252
Investments Accounted for Using Equity Method	3	617	644
Investment Property		43	43
Property and Equipment	11	7,605	7,055
Right of Use Assets	11	17,819	17,625
Intangible Assets
- Other Intangible Assets	12	148	112
- Goodwill		27	27
Prepaid Expenses		1,877	1,696
Deferred Tax Asset	25	637	402
TOTAL NON-CURRENT ASSETS		31,593	29,981
Current Assets
Cash and Cash Equivalents	5	2,486	2,721
Financial Investments	6	3,789	3,346
Trade Receivables
-Related Parties	8	76	43
-Third Parties		949	862
Other Receivables
-Related Parties	8	7	9
-Third Parties	9	1,255	1,359
Derivative Financial Instruments	27	87	119
Inventories		804	671
Prepaid Expenses		344	302
Current Income Tax Assets	25	4	29
Other Current Assets		190	232
TOTAL CURRENT ASSETS		9,991	9,693
TOTAL ASSETS		41,584	39,674

	(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
		Reviewed	Audited
LIABILITIES AND EQUITY	Notes	30 June 2025	31 December 2024
Equity
Share Capital	18	1,597	1,597
Treasury Shares Items That Will Not Be Reclassified to	18	(44)	(39)
Profit or Loss
-Actuarial Losses on Retirement Pay Obligation Items That Are or May Be Reclassified to	18	(288)	(284)
Profit or Loss
-Foreign Currency Translation Differences -Fair Value Gains on Hedging Instruments	18	(188)	(214)
Entered into for Cash Flow Hedges	18	(148)	620
-Gains on Remeasuring FVOCI		19	18
Restricted Profit Reserves	18	82	75
Previous Years Profit		17,287	14,112
Net Profit for the Period		650	3,425
Equity of the Parent Non-Controlling Interests		18,967 1	19,310 4
TOTAL EQUITY Non-Current Liabilities		18,968	19,314
Long-Term Borrowings	7	31	33
Long-Term Lease Liabilities	7 and 13	11,178	10,139
Other Payables
-Third Parties		28	32
Deferred Revenue	10	104	131
Long-Term Provisions
-Provisions for Employee Termination Benefits	16	266	247
-Other Provisions Deferred Tax Liability	25	108 59	107 65
TOTAL NON-CURRENT LIABILITIES		11,774	10,754
Current Liabilities
Short-Term Borrowings	7	1,364	1,571
Short-Term Portion of Long-Term Borrowings	7	109	291
Short-Term Portion of Lease Liabilities	7 and 13	2,002	1,827
Trade Payables
-Related Parties	8	292	293
-Third Parties Payables Related to Employee Benefits		1,358 439	1,201 536
Other Payables
-Related Parties	8	126	1
-Third Parties		189	315
Derivative Financial Instruments	27	257	37
Deferred Revenue	10	4,060	2,944
Short-Term Provisions -Provisions for Employee Benefits	14	126	101
-Other Provisions	14	14	14
Other Current Liabilities		506	475
TOTAL CURRENT LIABILITIES		10,842	9,606
TOTAL LIABILITIES AND EQUITY		41,584	39,674

			TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)		Reviewed	Not Reviewed	Reviewed	Not Reviewed
		1 January -	1 April -	1 January -	1 April -
PROFIT OR LOSS	Notes	30 June 2025	30 June 2025	30 June 2024	30 June 2024
Revenue	19	10,867	5,980	10,430	5,661
Cost of Sales (-)	20	(9,393)	(4,835)	(8,815)	(4,570)
GROSS PROFIT		1,474	1,145	1,615	1,091
General Administrative Expenses (-) Selling and Marketing Expenses (-)	21 21	(263) (884)	(92) (447)	(220) (913)	(112) (469)
Other Operating Income	22	337	109	217	106
Other Operating Expenses (-)	22	(34)	(9)	(66)	(25)
OPERATING PROFIT BEFORE
INVESTMENT ACTIVITIES		630	706	633	591
Income from Investment Activities	23	608	273	751	441
Expenses for Investment Activities Share of Investments' (Loss) / Profit	23	(53)	(16)	(2)	-
Accounted for Using The Equity Method	3	(28)	15	19	17
OPERATING PROFIT		1,157	978	1,401	1,049
Financial Income	24	543	310	371	176
Financial Expenses (-)	24	(954)	(493)	(746)	(367)
Monetary Gain		3	-	-
PROFIT BEFORE TAX		749	795	1,026	858
Tax Income Current Income Tax (Expense)	25	(102) (126)	(104) (122)	143 -	85 -
Deferred Tax Income	25	24	18	143	85
NET PROFIT FOR THE PERIOD		647	691	1,169	943
Attributable to:
Non-controlling interest		(3)	(3)	-	-
Equity of the Parent		650	694	1,169	943
OTHER COMPREHENSIVE INCOME
Items That May Be Reclassified Subsequently To Profit or Loss		(741)	(501)	322	113
Currency Translation Adjustment		26	21	10	16
Gains / (Losses) on Investments Remeasured FVOCI		1	13	(11)	1
Fair Value (Losses) / Gains on Hedging Instruments
Entered into for Cash Flow Hedges		(956)	(666)	382	114
Fair Value (Losses) / Gains Hedging Instruments
of Investment Accounted by Using the Equity
Method Entered into for Cash Flow Hedges		(35)	(21)	24	8
Tax of Other Comprehensive Income / (Expense)		223	152	(83)	(26)
Items That Will Not Be Reclassified Subsequently To Profit or Loss		(4)	(13)	(25)	(30)
Actuarial Losses on Retirement Pay Obligation			(5) (16)	(30)	(36)
Tax of Other Comprehensive Income		1	3	5	6
OTHER COMPREHENSIVE (EXPENSE) /
INCOME FOR THE PERIOD		(745)	(514)	297	83
TOTAL COMPREHENSIVE (EXPENSE) / INCOME FOR THE PERIOD		(98)	177	1,466	1,026
Attributable to:
Non-controlling interest		(3)	(3)	-	-
Equity holders of the parent		(95)	180	1,466	1,026
Basic Earnings Per Share (Full US Cents)	26	0.47	0.50	0.85 0.85	0.68 0.68
Diluted Earnings Per Share (Full US Cents)	26	0.47	0.50

Condensed Consolidated Interim Statement of Changes in Equity

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Changes in Equity For the Six-Month Period Ended 30 June 2025 (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
					Fair Value Gains
					on Hedging
			Actuarial Losses	Foreign Currency	Instruments Entered Into For	Gains on	Restricted	Previous	Net Profit	Equity Holders	Non
	Share	Treasury	Retirement Pay	Translation	Cash Flow	Remeasuring	Profit	Years	for The	of the	controlling	Total
	Capital	Shares	Obligation	Differences	Hedges	FVOCI	Reserves	Profit	Period	Parent	Interests	Equity
As of 1 January 2025	1,597	(39)	(284)	(214)	620	18	75	14,112	3,425	19,310	4	19,314
Transfers	-	-	-	-	-	-	7	3,418	(3,425)	-	-	-
Dividends paid Total comprehensive income	- -	1 -	- (4)	- 26	- (768)	- 1	- -	(243) -	- 650	(242) (95)	- (3)	(242) (98)
Increase through treasury share
transactions	-	(6)	-	-	-	-	-	-	-	(6)	-	(6)
As of 30 June 2025	1,597	(44)	(288)	(188)	(148)	19	82	17,287	650	18,967	1	18,968
			Items That Will Not
			Be Reclassified
					Items That May Be Reclassified Subsequently
			Subsequently To						Retained Earnings
			Profit or Loss		To Profit or Loss
					Fair Value Gains
				Foreign	on Hedging Instruments					Equity

	Capital	Shares	Obligation	Differences	Hedges	FVOCI	Reserves	Profit	Period	Parent	Interests	Equity
As of 1 January 2025	1,597	(39)	(284)	(214)	620	18	75	14,112	3,425	19,310	4	19,314
Increase through treasury share
			Items That Will Not
			Be Reclassified
			Subsequently To		Items That May Be Reclassified Subsequently
			Profit or Loss
					Fair Value Gains
					on Hedging
				Foreign	Instruments					Equity
			Actuarial Losses	Currency	Entered Into For	Gains on	Restricted	Previous	Net Profit	Holders	Non
	Share	Treasury	Retirement Pay	Translation	Cash Flow	Remeasuring	Profit	Years	for The	of the	controlling	Total
As of 1 January 2024	Capital 1,597	Shares (33)	Obligation (274)	Differences (221)	Hedges 281	FVOCI 21	Reserves 69	Profit 8,097	Period 6,021	Parent 15,558	Interests 5	Equity 15,563
Transfers	-	-	-	-	-	-	-	6,021	(6,021)	-	-	-
Total comprehensive income	-	-	(25)	10	323	(11)	-	-	1,169	1,466	-	1,466
Transactions with non
controlling interests	-	-	-	-	-	-	-	-	-	-	(1)	(1)
As of 30 June 2024	1,597	(33)	(299)	(211)	604	10	69	14,118	1,169	17,024	4	17,028

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Cash Flows
For the Six-Month Period Ended 30 June 2025
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
		Reviewed	Reviewed
		1 January -	1 January -
	Notes	30 June 2025	30 June 2024
Net Profit for the Period Adjustments to Reconcile Profit		647	1,169
Adjustments for Depreciation and Amortisation Expense	11 and 12	1,147	1,074
Adjustments for Provisions Related to Employee Benefits	14 and 16	55	64
Adjustments for Other Provisions	14	1	2
Adjustments for Doubtful Receivables		1	(4)
Adjustments for Interest Income Adjustments for Interest Expense	23 and 24 24	(668)	(664)
Adjustments for Unrealised Foreign Exchange Losses/(Gains)		253 130	301 (809)
Adjustments for Fair Value Losses on Derivative
Financial Instruments	24	254	333
Adjustments for Fair Value Losses		-	160
Adjustments for Undistributed Losses / (Gains) of Associates	3	28	(19)
Adjustments for Tax Expense / (Income) Adjustments for Gains Arised from Sale of Property, Plants and Equipments	25 23	102 (3)	(182) (3)
Adjustments for Losses Arised from Sale of Other Non-Current Assets		-	38
Operating Profit Before Changes in Working Capital		1,947	1,460
Increase in Trade Receivables from Related Parties	8	(33)	-
Increase in Trade Receivables from Third Parties		(89)	(307)
Decrease / (Increase) in Other Receivables from Related Parties Increase in Other Receivables from Third Parties	8 9	1 (103)	(12) (56)
Increase in Inventories		(133)	(47)
Increase in Prepaid Expenses		(223)	(713)
Decrease in Trade Payables to Related Parties Increase in Trade Payables to Third Parties	8	(1) 157	(17) 236
Decrease in Payables Due to
Employee Benefits		(97)	(57)
Increase / (Decrease) in Other Payables to Related Parties	8	125	(2)
(Decrease) / Increase in Other Payables to Third Parties Increase in Deferred Income		(130)	7
Decrease in Other Assets		1,118 42	1,658 21
Cash Flows From Operations		2,581	2,171
Payments for Provisions Related with Employee Benefits	16	(5)	(8)
Income Taxes Paid	25	(77)	(5)
Net Cash From Operating Activities		2,499	2,158
CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES Proceeds From Sales of Property, Plant and Equipment and Intangible Assets	11,12 and 23	20	30
Payments For Purchasing of Property, Plant and Equipment and Intangible
Assets		(912)	(570)
(Payments) / Proceeds For Purchasing and Sales of Other Financial Assets	6	(718)	195
Other Cash Advances and Loans Dividends Received	9 3	40	(211)
Interest Received	5 and 23	2 439	34 552
Net Cash Flows Used In Investing Activities		(1,129)	30
CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES
Payments to Acquire Entity's Own Shares Proceeds From Loans	7	(5) 1,118	- 1,261
Repayments of Loans	7	(1,678)	(2,083)
Payments of Lease Liabilities	7	(993)	(939)
Dividend Paid to Shareholders		(114)	-
Interest Paid Interest Received	7 24	(162) 243	(211) 68
Net Cash Used in Financing Activities		(1,591)	(1,904)
Net Change in Cash and Cash Equivalents		(221)	284
CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF THE PERIOD	5	2,556	675
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	5	2,335
			959

1. GROUP ORGANIZATION AND ITS OPERATIONS

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025
(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 30 June 2025, and 31 December 2024, the shareholders and their respective shareholdings in the
Company are as follows:
	30 June 2025	31 December 2024
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 30 June 2025 is 65,013 (31 December 2024: 63,455). The average number of employees working for the Group for the period ended 30 June 2025 and 2024 are 64,272 and 58,255 respectively.

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

Subsidiaries and Joint Ventures

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (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 30 June 2025, and 31 December 2024:
			Ownership Rate	Country of
Company Name	Principal Activity	30 June 2025	31 December 2024	Registration
Türk Hava Yolları Teknik A.Ş. (Turkish Technic)	Aircraft Maintenance Services	100%	100%	Türkiye
THY Uçuş Eğitim ve Havalimanı İşletme A.Ş. (Turkish Airlines Flight Academy) (TAFA)	Airport Operations and Flight Training	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)	Passenger and Cargo Transportation	100%	100%	Türkiye
Türk Hava Yolları Elektronik Para ve Ödeme Hizmetleri A.Ş. (TKPAY)	Payment Services	100%	100%	Türkiye
THY Ortak Sağlık ve Güvenlik Birimi Hizmetleri A.Ş.	Occupational Health and Safety Services	100%	100%	Türkiye
THY Gayrimenkul Yatırım Hizmetleri A.Ş.	Real Estate Investment Services	100%	100%	Türkiye
THY Spor A.Ş.	Sports Activities	100%	100%	Türkiye
TCI Kabin İçi Sistemleri San. ve Tic. A.Ş. (TCI Aircraft Interiors) (TCI)	Cabin Interior Production	80%	80%	Türkiye
TSI Seats Inc.	Cabin Interior Production	80%	80%	USA

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

Subsidiaries and Joint Ventures (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (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 30 June 2025, and 31 December 2024:
		Ownership Share and Voting Power		Country of
Company Name	Principal Activity	30 June 2025	31 December 2024	Registration
Güneş Ekspres Havacılık A.Ş. (SunExpress)	Passenger and Cargo Transportation	50%	50%	Türkiye
THY DO&CO İkram Hizmetleri A.Ş. (Turkish DO&CO)	Catering Services	50%	50%	Türkiye
TGS Yer Hizmetleri A.Ş. (Turkish Ground Services) (TGS)	Ground Services	50%	50%	Türkiye
THY OPET Havacılık Yakıtları A.Ş. (THY Opet)	Aviation Fuel Services	50%	50%	Türkiye
Pratt & Whitney THY Teknik Uçak Motoru Bakım Mrkz. Ltd. Şti. (Turkish Engine Center) (TEC)	Engine Maintenance	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. (Turkish Nacelle Center) (TNC) (Goodrich)	Reverse Thrust and Engine Nacelle	40%	40%	Türkiye
TFS Akaryakıt Hizmetleri A.Ş. (TFS Akaryakıt) (TFS)	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. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1 Basis of Presentation

Statement of Compliance

The condensed consolidated interim financial statements as at and for the six-month period ended 30 June 2025 have been prepared in accordance with IAS 34 "Interim Financial Reporting". They do not include all of the information required for complete annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2024.

Basis of Preparation

Functional and Reporting Currency

Functional currency

of the information required for complete annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2024.
Board of Directors has approved the condensed consolidated interim financial statements as of 30 June 2025 on 5 August 2025. General Assembly and the related regulatory bodies have the authority to modify these financial statements.
Basis of Preparation
The consolidated financial statements, except for some financial instruments that are stated at fair value, have been prepared on the historical cost basis. Historical cost is generally based on the fair value of the consideration given in exchange for goods or services.
Functional and Reporting Currency
Functional currency
The consolidated financial statements of the Group are presented in USD, which is the functional currency
of the Company. Details of the functional currencies of the subsidiaries of the Company are as follows;
Subsidiaries	Functional currencies
Turkish Technic	USD
TAFA	USD
THY Uluslararası Yatırım ve Taşımacılık A.Ş.	USD
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. TCI	TL 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 30 June 2025, 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 Compound Inflation Rate 30 June 2025 3,132.17 1.00000 220% 31 December 2024 2,684.55 1.16674 291% 30 June 2024 2,319.29 1.35049 324%

Date	Index	Adjustment Factor	Compound Inflation Rate
30 June 2025	3.132.17	1.000000		220%
31 December 2024	2,684.55	1.16674		291%
30 June 2024	2.319.29	1.35049		324%

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 30 June 2025. The combined effect of the restating in accordance with IAS 29 and translation in accordance with IAS 21 is presented as currency translation reserve in other comprehensive income.

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

2.1 Basis of Presentation (cont'd)

Basis of Consolidation

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

2.2 Changes and Errors in Accounting Policies Estimates

The significant estimates and assumptions used in the preparation of these consolidated financial statements as at and for the period ended 30 June 2025 are consistent with those used in the preparation of the Group's consolidated financial statements as at and for the year ended 31 December 2024.

2.3 Summary of Significant Accounting Policies

The accounting policies used in preparation of condensed consolidated interim financial statements as at 30 June 2025 are consistent with those used in the preparation of consolidated statements for the year ended 31 December 2024.

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

2.4 New and Revised Standards and Interpretations

a) Standards, amendments, and interpretations applicable as of 30 June 2025:

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.

The Group continues its efforts to comply with these standards.

b) Standards, amendments, and interpretations that are issued but not effective as of 30 June 2025:

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).

Annual improvements to IFRS – Volume 11; effective from annual periods beginning on or after 1 January 2026 (earlier application permitted). 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.

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

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

b) Standards, amendments, and interpretations that are issued but not effective as of 30 June 2025 (cont'd):

Amendment to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity; effective from annual periods beginning on or after 1 January 2026 but can be early adopted subject to local endorsement where required. These amendments change the 'own use' and hedge accounting requirements of IFRS 9 and include targeted disclosure requirements to IFRS 7. These amendments apply only to contracts that expose an entity to variability in the underlying amount of electricity because the source of its generation depends on uncontrollable natural conditions (such as the weather). These are described as 'contracts referencing nature-dependent electricity'.

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. 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.

2.5 Determination of Fair Values

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

Evaluation methods in terms of levels are described as follows:

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

2.6 Going Concern

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

3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (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:
SunExpress	261	322
TEC	98	94
Turkish DO&CO	85	67
TGS	84	67
THY Opet	44	40
TFS Akaryakıt	33	42
Goodrich	7	7
We World Express	5	5
	617	644

Turkish DO&CO			85	67
TGS			84	67
THY Opet			44	40
TFS Akaryakıt			33	42
Goodrich			7	7
We World Express			5	5
Share of investments' profit / (loss) accounted by using the equity method are as follows:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Turkish DO&CO	16	10	9	8
TGS	9	5	15	(4)
TFS Akaryakıt	5	2	8	5
TEC	4	(1)	4	3
THY Opet	2	3	(1)	1
Goodrich	-	-	1	1
Air Albania (*)	-	-	-	-
SunExpress	(64)	(4)	(17)	3
(*) 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 30 June 2025, the loss is USD 3. (The loss as of 31 December 2024: USD 3).	(28)	15	19	17
Movement in investments accounted by using the equity method is as follows:
			1 January - 30 June 2025	1 January - 30 June 2024
Opening balance			644	497
Foreign currency translation difference			31	12
Dividends to shareholders			(2)	(34)
Other comprehensive (expense) / income
recognized in equity			(28)	2

TGS	9	5	15	(4)
TFS Akaryakıt	5	2	8	5
TEC	4	(1)	4	3
THY Opet	2	3	(1)	1
Goodrich	-	-	1	1
SunExpress	(64)	(4)	(17)	3
(*) 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 30 June 2025, the loss is USD 3. (The loss as of 31 December 2024: USD 3).
Movement in investments accounted by using the equity method is as follows:		1 January -		1 January -
		30 June 2025		30 June 2024
Opening balance		644		497
Foreign currency translation difference		31		12
Dividends to shareholders		(2)		(34)
Other comprehensive (expense) / income
recognized in equity Share of net profit		(28) (28)		2 19

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

INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD (cont'd)		Notes to the Condensed Consolidated Interim Financial Statements (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
				30 June 2025
	SunExpress	TEC	Turkish DO&CO	TGS	TFS Akaryakıt	THY Opet	Other	Total
Total assets	3,225	329	323	409	522	193	41	5,042
Total liabilities	2,704	127	153	242	390	106	12	3,734
Total equity	521	202	170	167	132	87	29	1,308
Group's share in total equity	261	98	85	84	33	44	12	617
				1 April -30 June 2025
Revenue	606	158	193	225	758	176	22	2,138
Profit for the period	(8)	(2)	20	10	8	6	-	34
Group's share in joint
venture's loss for the period	(4)	(1)	10	5	2	3	-	15
				1 January - 30 June 2025
Revenue	833	329	358	411	1,433	321
	(128)	9	32	17	20	4	42	3,727
Profit for the period							-	(46)
Group's share in joint venture's profit for the period	(64)	4	16	9	5	2		(28)
							-

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

	INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD (cont'd)			31 December 2024
			Turkish		TFS
	SunExpress	TEC	DO&CO	TGS	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 April -30 June 2024
Revenue	484	107	154	221	925	208	32	2,131
Profit for the period	6	6	18	(8)	20	1	1	44
Group's share in joint
venture's loss for the period	3	3	8	(4)	5	1	1	17
				1 January - 30 June 2024
Revenue	710	217	276	369	1,722	353	60	3,707
Profit for the period	(34)	9	19	30	31	(2)	3	56
Group's share in joint
venture's profit for the period	(17)	4	9	15	8	(1)	1	19

4. SEGMENT REPORTING

Air Transport ("Aviation")

Technical Maintenance Services ("Technical")

4.1 Total Assets and Liabilities

30 June 2025	31 December 2024
	40,136
	2,258
	42,394
(2,883)	(2,720)
41,584	39,674
30 June 2025	31 December 2024
	20,630
580	699
23,342	21,329
(726)	(969)
	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. 42,285 2,182 44,467 22,762

4. SEGMENT REPORTING (cont'd)

4.2 Net Profit / (Loss)

SEGMENT REPORTING (cont'd)	As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	Notes to the Condensed Consolidated Interim Financial Statements
4.2 Net Profit / (Loss)
Segment Results:
1 January - 30 June 2025	Aviation	Technic	Inter-segment elimination	Total
Sales to External Customers	10,542	325	-	10,867
Inter-Segment Sales	257	898	(1,155)	-
Revenue	10,799	1,223	(1,155)	10,867
Cost of Sales (-)	(9,536)	(1,058)	1,201	(9,393)
Gross Profit	1,263	165	46	1,474
Administrative Expenses (-)	(375)	(38)	150	(263)
Selling and Marketing Expenses (-)	(874)	(13)	3	(884)
Other Operating Income	582	32	(277)	337
Other Operating Expenses (-) Operating Profit Before	(91)	(21)	78	(34)
Investment Activities	505	125	-	630
Income from Investment Activities	608	-	-	608
Expenses from Investment Activities	(53)	-	-	(53)
Share of Investments' (Loss)
/ Profit Accounted for Using
The Equity Method	(32)	4	-	(28)
Operating Profit	1,028	129	-	1,157
Financial Income	533	10	-	543
Financial Expense (-)	(939)	(15)	-	(954)
Monetary Gain	3	-	-	3
Profit Before Tax	625	124	-	749
Tax Expense	(91)	(11)	-	(102)
Current Tax Expense (-)	(107)	(19)	-	(126)
Deferred Tax Income	16	8	-	24
Net Profit For The Period	534	113	-	647

4. SEGMENT REPORTING (cont'd)

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

Notes to the Condensed Consolidated Interim Financial Statements	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
SEGMENT REPORTING (cont'd)
4.2 Net Profit / (Loss) (cont'd)
Segment Results (cont'd):
			Inter-segment
1 January - 30 June 2024	Aviation	Technic	elimination	Total
Sales to External Customers	10,146	284	-	10,430
Inter-Segment Sales	199	675	(874)	-
Revenue	10,345	959	(874)	10,430
Cost of Sales (-)	(8,759)	(857)	801	(8,815)
Gross Profit	1,586	102	(73)	1,615
Administrative Expenses (-)	(294)	(69)	143	(220)
Selling and Marketing Expenses (-)	(908)	(8)	3	(913)
Other Operating Income	274	58	(115)	217
Other Operating Expenses (-)	(85)	(23)	42	(66)
Operating Profit Before
Investment Activities	573	60	-	633
Income from Investment Activities	751	-	-	751
Expenses from Investment Activities	(2)	-	-	(2)
Share of Investments' Profit
Accounted for Using
The Equity Method	14	5	-	19
Operating Profit Financial Income	1,336 370	65 22	- (21)	1,401 371
Financial Expense (-)	(747)	(20)	21	(746)
Profit Before Tax	959	67	-	1,026
Tax Income / (Expense)	145	(2)	-	143
Deferred Tax Income / (Expense)	145	(2)	-	143
Net Profit For The Period	1,104	65	-	1,169
4.3 Investing Activities
1 January - 30 June 2025	Aviation	Technic	Inter-segment elimination	Total
Purchase of property and equipment, intangible assets, and right of use
assets	1,749	235	-	1,984
Current year depreciation and amortization charge	1,066	81	-	1,147
Share of Investments' (Loss) / Profit

4.3 Investing Activities

Accounted for Using
Operating Profit	1,336	65	-	1,401
Financial Income	370	22	(21)	371
Financial Expense (-)	(747)	(20)	21	(746)
Profit Before Tax	959	67	-	1,026
Net Profit For The Period	1,104	65	-	1,169
4.3 Investing Activities			Inter-segment elimination
				Total
Purchase of property and equipment, intangible assets, and right of use assets	1,749	235	-	1,984
Current year depreciation
and amortization charge	1,066	81	-	1,147
Share of Investments' (Loss) / Profit Accounted for Using The Equity
Method	(32)	4	-	(28)

4. SEGMENT REPORTING (cont'd)

4.3 Investing Activities (cont'd)

As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)		TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements
SEGMENT REPORTING (cont'd)
4.3 Investing Activities (cont'd)
1 January - 30 June 2024	Aviation	Technic	Inter-segment elimination	Total
Purchase of property and equipment,
intangible assets, and right of use assets	1,527	173	-	1,700
Current year depreciation and amortization charge	972	102	-	1,074
Share of Investments' (Loss) / Profit
Accounted for Using The Equity Method	14	5	-	19
CASH AND CASH EQUIVALENTS
		30 June 2025		31 December 2024
Cash			1	1
Banks – Time deposits			1,983	2,296
Banks – Demand deposits			502	424
			2,486	2,721

5. CASH AND CASH EQUIVALENTS

	30 June 2025	31 December 2024
Cash
Banks – Time deposits	1,983	2,296
Banks – Demand deposits	502	424
	2.486	2.721

Current year depreciation
Share of Investments' (Loss) / Profit
Accounted for Using The Equity
CASH AND CASH EQUIVALENTS
			2,486		2,721
		Details of the time deposits as of 30 June 2025, and 31 December 2024 are as follows:
Original Amount	Currency	Effective Interest Rate	Maturity		30 June 2025
45,567	TL	38.95% - 51.78%	September 2025		1,292
584	EUR	2.63% - 3.83%	September 2025		691
					1,983
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
		Reconciliation with statement of cash flows as of 30 June 2025 and 2024 are as follows:
		30 June 2025	31 December 2024	30 June 2024
Cash and cash equivalents		2,486	2,721		1,011
Interest accruals (-)		(151)	(165)		(52)
Cash and cash equivalents in statement of
cash flows		2,335	2,556	4	959 4

Cash and cash equivalents in statement of

6. FINANCIAL INVESTMENTS

		TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements
	FINANCIAL INVESTMENTS	As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
		Short-term financial investments are as follows:
			30 June 2025	31 December 2024
	Fair value through profit and loss (FVTPL)
	- Currency protected deposit account		-	975
- Investment Fund			311	198
- Equity securities (FVOCI)		Fair value through other comprehensive income	-	17
- Corporate debt securities			1,872	901
	- Government debt securities		70	47
		Time deposits with maturity more than 3 months	1,536	1,208
			3,789	3,346
follows:		Time deposit with maturity of more than 3 months as of 30 June 2025, and 31 December 2024 is as
Amount	Currency	Effective Interest Rate	Maturity	30 June 2025
1,007	EUR	2.89% - 4.25%	February 2026	1,190
12,553	TL	38.48% - 49.40%	February 2026	346
				1,536
Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
35,438	TL	46.25% - 53.14%	July 2025	1,130

		Fair value through other comprehensive income
(FVOCI)
follows:		Time deposit with maturity of more than 3 months as of 30 June 2025, and 31 December 2024 is as
Amount	Currency	Effective Interest Rate	Maturity	30 June 2025
12,553	TL	38.48% - 49.40%	February 2026	346
				1,536
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
				1,208
		Long-term financial investments are as follows:
			30 June 2025	31 December 2024
FVOCI
- Corporate debt securities			1,085	897
	- Government debt securities		302	215
Other			1	1
			1,388	1,113

Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
				1,208
	Long-term financial investments are as follows:
			30 June 2025	31 December 2024
FVOCI
	December 2024 are as follows:	Contractual maturity dates of financial investments measured at FVOCI as of 30 June 2025, and 31	30 June 2025	31 December 2024
Less than 1 year			1,942	948
1 to 5 years			594	673
Over 5 years			793	439
			3,329	2,060

30 June 2025	31 December 2024

7. BORROWINGS

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) BORROWINGS
Short-term borrowings are as follows:
	30 June 2025	31 December 2024
Bank borrowings	1,364	1,571
Short-term portions of long-term borrowings are as follows:

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements
As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) BORROWINGS
Short-term borrowings are as follows:
Bank borrowings	1,364	1,571
Short-term portions of long-term borrowings are as follows:
	30 June 2025	31 December 2024
Lease liabilities (Note: 13)	2,002	1,827
Bank borrowings	109	291
	2,111	2,118
Long-term borrowings are as follows:
	30 June 2025	31 December 2024

Short-term borrowings are as follows:
Bank borrowings	1,364	1,571
Short-term portions of long-term borrowings are as follows:
Lease liabilities (Note: 13)	2,002	1,827
Bank borrowings	109	291
	2,111	2,118
Long-term borrowings are as follows:
	30 June 2025	31 December 2024
Lease liabilities (Note: 13)	11,178	10,139
Bank borrowings	31	33
	11,209	10,172
The maturity analysis for bank loans as of as of 30 June 2025, and 31 December 2024 are as follows:
	30 June 2025	31 December 2024

	30 June 2025	31 December 2024
Less than 1 year	1,473	1,862
Between 1 – 5 years	25	24
Over 5 years	6	9
	1,504	1,895

	Lease liabilities (Note: 13)			11,178	10,139
Bank borrowings				31	33
				The maturity analysis for bank loans as of as of 30 June 2025, and 31 December 2024 are as follows:
				30 June 2025	31 December 2024
Less than 1 year				1,473	1,862
Between 1 – 5 years				25	24
Over 5 years				6	9
				1,504	1,895
Original Amount	Currency	Interest Rate Type	Effective Interest Rate	Details of bank borrowings as of 30 June 2025, and 31 December 2024 are as follows: Payment Period	30 June 2025
1,044	EUR	Fixed	0.20% - 4.00%	July 2025 - March 2031	1,224
277	USD	Fixed	4.40% - 4.55%	March 2026	277
2	EUR	Floating	Euribor + 3.65%	October 2025	3
					1,504
Original		Interest	Effective Interest		31 December

Between 1 – 5 years Over 5 years Original Amount				25 6 1,504	24 9 1,895
				Details of bank borrowings as of 30 June 2025, and 31 December 2024 are as follows:
		Interest	Effective Interest
	Currency	Rate Type	Rate	Payment Period	30 June 2025
					1,504
Original		Interest	Effective Interest		31 December
Amount	Currency	Rate Type	Rate	Payment Period	2024
1,542	EUR	Fixed	0.20% - 4.00%	January 2025 - 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

7. BORROWINGS (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
BORROWINGS (cont'd)
As of 30 June 2025, 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 2025	Payment	Interest	Non-cash Changes	Additions	30 June 2025
Bank Borrowings	1,895	(1,678)	(35)	204	1,118	1,504
	1 January			Non-cash

Bank Borrowings	2,435	(2,083)	(67)	(139)	1,261	1,407
	1 January 2024	Payment	Interest	Non-cash Changes	Additions	30 June 2024
Bank Borrowings	1,895	(1,678)	(35)	204	1,118	1,504
	1 January			Non-cash Changes	Additions	30 June 2025
	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:
	As of 30 June 2025, the Group meets the loan covenant compliance conditions.
BORROWINGS (cont'd)
	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)

BORROWINGS (cont'd) As of 30 June 2025, 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 Changes			30 June 2025
Bank Borrowings		1,895	(1,678)	(35)	204	Additions	1,118	1,504
		1 January			Non-cash
		2024	Payment	Interest	Changes	Additions		30 June 2024
Bank Borrowings		2,435	(2,083)	(67)	(139)		1,261	1,407
	1 January			Non-cash			New	30 June
	2025	Payment	Interest	Changes	Modifications		Leases	2025
Aircraft	11,287	(954)	(127)	1,075		4	1,141	12,426
Property	678	(38)	-	88		17	2	747
Other	1	(1)	-	-		-	7	7
	11,966	(993)	(127)	1,163		21	1,150	13,180
	1 January 2024	Payment	Interest	Non-cash Changes	Modifications		New Leases	30 June 2024
Aircraft	11,221	(901)	(144)	(273)		-	917	10,820
Property	590	(37)	-	(3)		8	156	714
Other	1	(1)	-	-		-	2	2
	11,812	(939)	(144)	(276)		8	1,075	11,536

Bank Borrowings		1,895	(1,678)	(35)	204		1,118	1,504
		1 January			Non-cash Changes		Additions	30 June 2024
Bank Borrowings		2,435	(2,083)	(67)	(139)		1,261	1,407
	1 January			Non-cash			New Leases	30 June 2025
	1 January 2024	Payment	Interest	Non-cash Changes	Modifications		New Leases	30 June 2024
Aircraft	11,221	(901)	(144)	(273)		-	917	10,820
Property	590	(37)	-	(3)		8	156	714
		(1)	-	-		-	2	2
Other	1					8	1,075	11,536

8. RELATED PARTIES

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
RELATED PARTIES
Short-term trade receivables from related parties are as follows:
	30 June 2025	31 December 2024
Air Albania	41	38
TGS	22	-
SunExpress	8	3
Türkiye Sigorta	4	-
TEC	1	-
We World Express	-	2
	76	43
Other short-term receivables from related parties are as follows:
	30 June 2025	31 December 2024
Air Albania	5	2
TEC	2	7
	7	9
Other long-term receivables from related parties are as follows:
	30 June 2025	31 December 2024
Air Albania	13	12
Short-term trade payables to related parties are as follows:
	30 June 2025	31 December 2024
TFS Akaryakıt Hizmetleri	121	101

Air Albania	5	2
TEC	2	7
	7	9

	30 June 2025	31 December 2024
Air Albania		12

Other short-term receivables from related parties are as follows:
Air Albania	5	2
TEC	2	7
	7	9
Other long-term receivables from related parties are as follows:
	30 June 2025	31 December 2024
Air Albania	13	12
Short-term trade payables to related parties are as follows:
	30 June 2025	31 December 2024
TFS Akaryakıt Hizmetleri	121	101
TGS	77	93
Turkish DO&CO	55	65
THY Opet	16	19
TEC	13	11
Air Albania	4	-
Goodrich	3	1
SunExpress	2	-
Turkcell	1	3
	292	293
Other short-term payables to related parties are as follows:
	30 June 2025	31 December 2024
Dividend payables to shareholders (*)	119	-
Türkiye Sigorta	6	-
Air Albania	1	1
	126	1

126	1

(*) In accordance with the resolution adopted at the General Assembly held on 21 May 2025, a dividend payment amounting to 243 USD (9,500 TL) distributed from the distributable net profit of 3,425 USD (113,378 TL) for the accounting period of 1 January 2024 to 31 December 2024 consolidated financial statements. The first installment of 4,500 TL was distributed as a dividend to shareholders of Groups A and C on 16 June 2025.

8. RELATED PARTIES (cont'd)

a) Sales to related parties:

As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
RELATED PARTIES (cont'd)
Transactions with related parties for the period ended 30 June 2025 and 2024 are as follows:
a) Sales to related parties:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
TGS	42	21	42	22
SunExpress	28	11	18	10
Türkiye Sigorta	4	-	2	1
Türk Telekom	4	2	3	3
PTT	1	-	1	-
TEC	1	-	4	1
Air Albania	1	1	3	2
Goodrich	1	1	1	-
We World Express	-	-	2	1
Turkcell	-	-	1	-
	82	36	77	40
b) Purchases from related parties:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024

b) Purchases from related parties:

Türk Telekom	4	2	3	3
PTT	1	-	1	-
TEC	1	-	4	1
Air Albania	1	1	3	2
Goodrich	1	1	1	-
We World Express	-	-	2	1
b) Purchases from related parties:
	1 January -	1 April -	1 January -	1 April -
	30 June 2025	30 June 2025	30 June 2024	30 June 2024
TFS Akaryakıt Hizmetleri	1,198	620	1,415	730
TGS	369	192	287	155
Turkish DO&CO	300	161	236	130
TEC	225	84	169	99
THY Opet	151	77	122	38
SunExpress	25	-	3	-
Türk Telekom	11	6	16	16
Goodrich	10	5	8	4
Turkcell	6	3	7	4
Türkiye Sigorta	4	1	1	1
Ziraat Bankası	1	-	-	-
Halkbank	1	-	-	-
	2,301	1,149	2,264	1,177
Details of the financial assets and liabilities for related parties as of 30 June 2025, and 31 December 2024 are as follows:
			30 June 2025	31 December 2024

	30 June 2025	31 December 2024
Debt Securities (**)	2,802	1,718
Financial investments (***)	1,282	1,082
Banks - Time deposits	1,254	1,637
Banks - Demand deposits	50	173
Investment Fund	73	49
Equity share	-	2
Bank borrowings	(3)	(5)

(**) This represents the nominal amount.

(***) As of 30 June 2025, this amount represents the currency protected time deposits and time deposit with maturity more than 3 months.

8. RELATED PARTIES (cont'd)

		TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (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 30 June 2025, and 31 December 2024 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	30 June 2025
564	EUR 2.63% - 3.83% 21,189 TL 39.43% - 47.50%	September 2025	667
		September 2025	587
				1,254
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
December 2024: USD 90). follows:		As of 30 June 2025, the amount of letters of guarantees given to the related parties is USD 117 (31 Details of the financial investments at related parties as of 30 June 2025, and 31 December 2024 are as
Amount	Currency	Effective Interest Rate	Maturity	30 June 2025
992	EUR	2.89% - 4.25%	February 2026	1,172
4,000	TL	38.48% - 46.55%	February 2026	110
				1,282
Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
29,321	TL (****)	36.00% - 51.30%	July 2025	1,004

				1,254
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
December 2024: USD 90).		As of 30 June 2025, the amount of letters of guarantees given to the related parties is USD 117 (31
follows:		Details of the financial investments at related parties as of 30 June 2025, and 31 December 2024 are as
4,000	TL	38.48% - 46.55%	February 2026	110
				1,282
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
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 30 June 2025, and 31 December 2024 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	30 June 2025
			March 2026 -
1,705	EUR	4,5% - 5,88%	May 2030	2,000
			December 2025 -
727	USD	5,25% - 10,12%	July 2029	727
	TL	12,60% - 46%	October 2025 -	75
2,993			May 2027	2,802

				1,282
				1,082
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 30 June 2025, and 31 December 2024 are as follows:
			March 2026 -
1,705	EUR	4,5% - 5,88%	May 2030	2,000
			December 2025 -
727	USD	5,25% - 10,12%	July 2029	727
2,993	TL	12,60% - 46%	October 2025 -	75
			May 2027
				2,802
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
		26

8. RELATED PARTIES (cont'd)

		TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
		Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025
		(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 30 June 2025, and 31 December 2024 are as follows:
Amount	Currency	Effective Interest Rate	Maturity	30 June 2025
2	EUR	(Euribor + 3.65%)	October 2025	3
Amount	Currency	Effective Interest Rate	Maturity	31 December 2024
4	EUR	(Euribor + 3.65%)	October 2025	5
	Interest income from related parties:	1 January -	1 April -	1 January - 1 April -

Interest income from related parties:

	Interest income from related parties:
		1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Vakıfbank		197	43	188	63
Ziraat Bankası		129	38	211	88
Halkbank		42	6	252	90
Ziraat Katılım		25	6	21	8
		393	93	672	249
	Interest expense to related parties:
		1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Vakıfbank Ziraat Bankası		- -	- -	5 3	1 -
		-	-	8	1

Interest expense to related parties:

	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Vakıfbank	-	-	5	1
Ziraat Bankası	-	-	3	-

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 SunExpress 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 Halkbank, Ziraat Bankası, Vakıf Bank and Ziraat Katılım 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 9 for the period between 1 January - 30 June 2025 (1 January- 30 June 2024: USD 7).

9. OTHER RECEIVABLES

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
As At And For the Six-Month Period Ended 30 June 2025
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
OTHER RECEIVABLES
Other short-term receivables from third parties as of 30 June 2025, and 31 December 2024 are as follows:
	30 June 2025	31 December 2024
Predelivery payments made for aircraft	750	837
Receivables from technical purchases	241	257
Bank deposits with transfer limitations (*)	124	145
Tax refund	60	49
Receivables from pilots for flight training	38	31
Others	42 1,255	40 1,359

Others	42	40
(*) As of 30 June 2025, the amount consists of bank deposits in Ethiopia, Bangladesh, Algeria, Nigeria, Senegal, Niger, Mali, Burkina Faso, Mozambique, Angola, Cameroon, Chad, Gabon, Benin, Cote d'Ivoire, Lebanon, Congo, Ghana, Pakistan, Malawi, Equatorial Guinea, Venezuela, Libya, Syria and Iran. (As of 31 December 2024, the amount consists of bank deposits in Ethiopia, Bangladesh, Algeria, Nigeria, Senegal, Niger, Mali, Burkina Faso, Mozambique, Angola, Cameroon, Chad, Gabon, Benin, Cote D'ivoire, Sudan, Lebanon, Congo, Ghana, Egypt, Pakistan, Malawi, Equatorial Guinea, Venezuela, Libya and Iran).
Other long-term receivables from third parties as of 30 June 2025, and 31 December 2024 are as follows:	30 June 2025	31 December 2024
Predelivery payments made for aircraft	613	566
Investment incentives (**)	437	420
Receivables from pilots for flight training	235	178
Deposits and guarentees given Interest and commodity swap agreement deposits	120 14	75 13

10. DEFERRED INCOME

Deferred income is as follows:

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 10. DEFERRED INCOME
Deferred incomes as of 30 June 2025, and 31 December 2024 are as follows:
Deferred income is as follows:
	30 June 2025	31 December 2024
Passenger flight liabilites	3,772	2,659
Other short-term deferred income	288	285
	4,060	2,944
Passenger flight liability is as follows:
	30 June 2025	31 December 2024
Flight liability for tickets sold	3,490	2,352
Frequent flyer program liability	282	307
	3,772	2,659
Other short-term deferred income is as follows:

Passenger flight liability is as follows:

	30 June 2025	31 December 2024
Flight liability for tickets sold	3,490	2,352

Other short-term deferred income is as follows:

Deferred income is as follows:
	30 June 2025	31 December 2024
Passenger flight liability is as follows:
	30 June 2025	31 December 2024
Flight liability for tickets sold	3,490	2,352
Other short-term deferred income is as follows:
	30 June 2025	31 December 2024
Unused manufacturers' credits	164	172
Advances received	46	33
Deferred other contract income	31	31
Other	47	49
	288	285
Long-term deferred income is as follows:
	30 June 2025	31 December 2024
Deferred other contract income	59	81
Other	45	50
	104	131

Long-term deferred income is as follows:

30 June 2025	31 December 2024

11. PROPERTY AND EQUIPMENT

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	As At And For the Six-Month Period Ended 30 June 2025	Notes to the Condensed Consolidated Interim Financial Statements
11. 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 2025	1,625	870	371	9,370	937	915	263	433	14,784
Additions	4	22	15	192	96	177	8	176	690
Transfer (*)	1	1	13	38	20	-	5	(103)	(25)
Transfers between the account	-	-	-	788	21	-	-	-	809
Disposals	-	(3)	(2)	(165)	(6)	(147)	(1)	(7)	(331)
Closing balance at 30 June 2025	1,630	890	397	10,223	1,068	945	275	499	15,927
Accumulated Depreciation
Opening balance at 1 January 2025	535	457	269	5,401	459	452	156	-	7,729
Depreciation charge	36	22	18	278	41	38	5	-	438
Transfers between the account	-	-	-	334	20	-	-	-	354
Disposals	-	(2)	(2)	(161)	(6)	(27)	(1)	-	(199)
Closing balance at 30 June 2025	571	477	285	5,852	514	463	160	-	8,322
Net book value at 30 June 2025	1,059	413	112	4,371	554	482	115	499	7,605
Net book value at 31 December 2024	1,090	413	102	3,969	478	463	107	433	7,055

USD 1,104 of depreciation and amortization expenses recognized in cost of sales (30 June 2024: USD 1,037), USD 39 of general administrative expenses (30 June 2024: USD 34) and USD 4 of selling and marketing expenses (30 June 2024: USD 3) in total of USD 1,147 as of 30 June 2025 (30 June 2024: USD 1,074).

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 30 June 2025 (30 June 2024: None).

11. PROPERTY AND EQUIPMENT (cont'd)

As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements
11. 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 2024	1,554	812	321	7,529	881	846	254	323	12,520
Additions	3	20	21	79	3	123	2	155	406
Transfer (*)	35	4	2	47	8	-	1	(108)	(11)
Transfers to inventories	-	-	-	-	-	-	-	(34)	(34)
Transfers between the accounts	-	-	-	1,034	-	-	-	-	1,034
Disposals	-	(1)	(3)	(111)	(22)	(102)	-	-	(239)
Closing balance at 30 June 2024	1,592	835	341	8,578	870	867	257	336	13,676
Accumulated Depreciation
Opening balance at 1 January 2024	470	424	249	4,344	388	428	142	-	6,445
Depreciation charge	34	20	14	226	40	63	8	-	405
Transfers between the accounts	-	-	-	463	6	-	-	-	469
Disposals	-	(1)	(3)	(110)	(10)	(64)	-	-	(188)
Closing balance at 30 June 2024	504	443	260	4,923	424	427	150	-	7,131
Net book value at 30 June 2024	1,088	392	81	3,655	446	440	107	336	6,545

11. PROPERTY AND EQUIPMENT (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Notes to the Condensed Consolidated Interim Financial Statements
As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
11. 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 2025	22,861	391	808	5	24,065
Additions (**)	1,200	34	1	6	1,241
Transfer	24	-	-	-	24
Disposals	(68)	-	(5)	(3)	(76)
Modifications	61	-	11	1	73
Transfers between the accounts (***)	(809)	-	-	-	(809)
Closing balance at 30 June 2025	23,269	425	815	9	24,518
	Aircraft	Spare engines	Real estate	Vehicles	Total
Accumulated Depreciation
Opening balance at 1 January 2025	6,245	88	103	4	6,440
Depreciation charge	661	12	22	1	696
Disposals	(68)	-	(5)	(2)	(75)
Modifications	(3)	-	(5)	-	(8)
Transfers between the account (***)	(354)	-	-	-	(354)
Closing balance at 30 June 2025	6,481	100	115	3	6,699
Net book value at 30 June 2025	16,788	325	700	6	17,819
	Aircraft	Spare engines	Real estate	Vehicles	Total
Cost
Opening balance at 1 January 2024	22,011	338	663	8	23,020
Additions	1,104	20	148	2	1,274
Transfers	11	-	-	-	11
Disposals	(151)	-	(15)	(4)	(170)
Modifications	-	-	30	1	31
Transfers between the accounts (***)	(1,034)	-	-	-	(1,034)
Closing balance at 30 June 2024	21,941	358	826	7	23,132
	Aircraft	Spare engines	Real estate	Vehicles	Total
Accumulated Depreciation
					6,092
Opening balance at 1 January 2024	5,936	71	78	7

Accumulated Depreciation
Opening balance at 1 January 2025	6,245	88	103	4	6,440
Depreciation charge	661	12	22	1	696
Closing balance at 30 June 2025	6,481	100	115	3	6,699
Cost
Transfers	11	-	-	-	11
Disposals	(151)	-	(15)	(4)	(170)
Modifications	-	-	30	1	31
Transfers between the accounts (***)	(1,034)	-	-	-	(1,034)
Closing balance at 30 June 2024	21,941	358	826	7	23,132
	Aircraft	Spare engines	Real estate	Vehicles	Total
Accumulated Depreciation
Opening balance at 1 January 2024	5,936	71	78	7	6,092
Depreciation charge	625	10	23	1	659
Disposals	(151)	-	(1)	(4)	(156)
Transfers between the account (***)	(463)	(6)	-	-	(469)
Closing balance at 30 June 2024	5,947	75	100	4	6,126
Net book value at 30 June 2024	15,994	283	726	3	17,006

(***) Transfers mainly consist of aircraft that lease payments have been completed and ownership has been transferred to the Group.

12. INTANGIBLE ASSETS

	(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
INTANGIBLE ASSETS	Slot rights and acquired technical licenses (*)	Rights	Other intangible assets	Total
Cost
Opening balance at 1 January 2025	44	322	28	394
Additions	-	36	17	53
Disposals	-	(5)	-	(5)
Transfers	-	1	-	1
Closing balance at 30 June 2025	44	354	45	443
Accumulated Amortization
Opening balance at 1 January 2025	-	279	3	282
Amortization charge	-	12	1	13
Closing balance at 30 June 2025	-	291	4	295
Net book value at 30 June 2025	44	63	41	148
Net book value at 31 December 2024	44	43	25	112
	Slot rights and acquired technical licenses (*)	Rights	Other intangible assets	Total
Cost
Opening balance at 1 January 2024	44	299	5	348
Additions	-	20	-	20
Closing balance at 30 June 2024	44	319	5	368
Accumulated Amortization
Opening balance at 1 January 2024	-	258	3	261
Amortization charge	-		10 -	10
Closing balance at 30 June 2024	-	268	3	271
Net book value at 30 June 2024	44	51	2	97

13. LEASES

As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	Notes to the Condensed Consolidated Interim Financial Statements		TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
Maturities of lease obligations are as follows:
	Future Minimum Lease Payments		Interest		Present Values of Minimum Lease Payments
	30 June 2025	31 December 2024	30 June 2025	31 December 2024	30 June 2025	31 December 2024
Less than 1 year Between 1 – 5 years Over 5 years	2,381 6,705 6,167	2,193 6,223 5,556	(379) (981) (713)	(366) (953) (687)	2,002 5,724 5,454	1,827 5,270 4,869
	15,253	13,972	(2,073)	(2,006)	13,180	11,966
				30 June 2025		31 December 2024
Fixed rate lease liabilities				6,982		6,668
Floating rate lease liabilities				6,198		5,298
				13,180		11,966

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 30 June 2025, the USD, Euro, CNY, JPY, TL and Swiss Franc denominated lease obligations' weighted average interest rates are 6.21% (31 December 2024: 5.43%) for the fixed rate obligations and 1.35% (31 December 2024: 1.55%) for the floating rate obligations. 30 June 2025 31 December 2024 Provisions for unused vacation 126 101

14. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

	30 June 2025	31 December 2024
Provisions for unised vacation	10%	101

As of 30 June 2025, the USD, Euro, CNY, JPY, TL and Swiss Franc denominated lease obligations' weighted average interest rates are 6.21% (31 December 2024: 5.43%) for the fixed rate obligations and
1.35% (31 December 2024: 1.55%) for the floating rate obligations.
14. 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 30 June 2025, and 31 December 2024 are as follows:
Short-term provision for employee benefits is as follows:
Changes in the provisions for the period ended 30 June 2025 and 2024 are set out below:	1 January - 30 June 2025	1 January - 30 June 2024
Provisions at the beginning of the period	101	50
Provisions for the current period	554	407
Foreign currency translation differences Provisions released	(13) (516)	(7) (358)

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

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
14. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont'd)
Other short-term provision is as follows:
	30 June 2025	31 December 2024
Provisions for legal claims	14	14
Changes in the provisions for legal claims for the period ended 30 June 2025 and 2024 are set out below:

Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
14. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont'd)
Other short-term provision is as follows:
Changes in the provisions for legal claims for the period ended 30 June 2025 and 2024 are set out below:	1 January - 30 June 2025	1 January - 30 June 2024
Provisions at the beginning of the period	14	6
Provisions for the current period	4	2
Foreign currency translation differences	(1)	(1)
Provisions released	(3)	-

15. COMMITMENTS

As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 15. COMMITMENTS
a) Guarantees/Pledges/Mortgages ("GPM") given by the Group:
Amount of letters of guarantees given as of 30 June 2025 is USD 219 (31 December 2024: USD 165).
As of 30 June 2025, the letters of guarantee are given to various authorities (i.e. various banks and vendors.)
	30 June 2025		31 December 2024
	Original currency amount	USD equivalent	Original currency amount	USD equivalent
A. Total amounts of GPM given on the behalf of its own legal entity -Collaterals	-	219	-	165
TL	651	16	298	8
EUR	40	47	38	40
USD	114	114	82	82
Other	-	42	-	35
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	-	-	-	-
		219		165

b) Aircraft purchase commitments:

The Group has signed agreements for 408 aircraft that will be delivered between the years 2025 and 2045, (283 of aircraft are contractual and 125 of them are optional) with a list price value of USD 26,993 each. The Group has made a predelivery payment of USD 1,437 gross relevant to these purchases as of 30 June 2025 (31 December 2024: USD 1,489).

16. EMPLOYEE BENEFITS

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
EMPLOYEE BENEFITS
Provisions for retirement pay liability as of 30 June 2025, and 31 December 2024 are comprised of the following:
	30 June 2025	31 December 2024
Provision for retirement pay liability	266	247
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 1,172 (full) (equivalent of TL 46,655 (full)) as of 30 June 2025. (31 December 2024: USD 1,185 (full) equivalent to TL 41,828 (full)).

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

methods under defined benefit plans. Actuarial assumptions used in calculation of total liabilities are described as follows:	IAS 19 ("Employee Benefits") stipulates the progress of the Group's liabilities by use of actuarial valuation
The critical assumption is that the maximum liability amount increases in accordance with the inflation rate for every service year. Provisions in the accompanying consolidated financial statements as of 30 June 2025 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 2024: 24.95%) and 29.32% interest rate (31 December 2024: 29.32%). Estimated amount of non-paid retirement pay retained in the Group due to voluntary leaves is assumed as 2.25% (31 December 2024: 2.20%). Ceiling for retirement pay is revised semi-annually. Ceiling amount of USD 1,354 (full) (equivalent to TL 53,920 (full)) which has been in effect since 1 July 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 - 30 June 2025	1 January - 30 June 2024
Provision at the beginning of the period
Interest cost	247	229
Service cost for the period	32	28
Actuarial loss	17 5	15
Payments		30
Foreign currency translation difference	(5) (30)	(8) (39)
Provision at the end of the period	266	255

17. EXPENSES BY NATURE

As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
17. EXPENSES BY NATURE
Expenses by nature for the period ended 30 June 2025 and 2024 are as follows:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Fuel	2,782	1,436	3,123	1,586
Personnel	2,676	1,331	2,117	1,091
Depreciation and amortisation	1,147	582	1,074	543
Ground services	780	401	717	413
Aircraft maintenance	630	317	517	261
Passenger services and catering	545	290	459	247
Airport	499	273	443	224
Air traffic control	446	245	387	202
Commissions and incentives	322	167	330	173
Wet lease	128	50	201	109
Reservation systems	119	55	161	83
Advertisement and promotion	72	42	86	51
IT and communication	54	19	31	15
Service	47	23	61	38
Transportation	40	20	32	17
Insurance	30	14	36	19
Rents	30	16	14	4
Taxes and duties	23	12	30	10
Call center	22	10	17	10
Systems use and associateship	17	10	14	7
Consultancy	14	7	14	7
Aircraft rent	14	8	15	10
Utility	13	6	12	6
Other	90	40	57	25
	10,540	5,374	9,948	5,151

18. SHAREHOLDERS' EQUITY

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
18. SHAREHOLDERS' EQUITY
The ownership structure of the Company's share capital is as follows:
					31 December
(Millions of TL)	Class	%	30 June 2025	%	2024
Türkiye Wealth Fund		A 49.12	678	49.12	678
Republic of Türkiye Treasury and Finance Ministry Privatization	C	-	-	-	-
Administration
Treasury Shares (*)	A	0.46	6	0.40	6
Other (publicly held) Paid-in capital (Turkish Lira)	A	50.42	696	50.48	696
Inflation adjustment on share capital			1,380		1,380
(Turkish Lira) (**)
Share capital (Turkish Lira)			1,124 2,504		1,124 2,504

(*) On 21.05.2025, in accordance with the Capital Market Board's Communique II-22.1 on treasury shares, 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 1.7% of the issued share capital. According to share buy-back program, company purchased 6,276,244 shares with the amount of USD 44 as of 30 June 2025.

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

As of 30 June 2025, the Registered paid-in share capital of the Company comprised 137,999,999,999 Class A shares and 1 Class C share, all with a par value of Kr 1 each. The Class C share belongs to the Republic of Türkiye Treasury and Finance Ministry Privatization Administration and has the following privileges:

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

18. SHAREHOLDERS' EQUITY (cont'd)

Restricted Profit Reserves

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

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

Foreign Currency Translation Differences

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

Distribution of Dividends

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

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

Actuarial Differences on Defined Benefit Plans

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

Gains/Losses from Cash Flow Hedges

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

As of 2025, 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 %52 of borrowings. In this context, exchange differences arising from such these loans repayment are taken to equity and recognized in other comprehensive income.

19. REVENUE

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
Breakdown of gross profit is as follows:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Passenger revenue
Scheduled	8,803	4,892	8,377	4,559
Unscheduled	64	46	44	38
Total passenger revenue	8,867	4,938	8,421	4,597
Cargo revenue
Carried by cargo aircraft	777	395	759	419
Carried by passenger aircraft	787	407	876	466
Total cargo revenue	1,564	802	1,635	885
Total passenger and cargo revenue	10,431	5,740	10,056	5,482
Technical revenue	325	184	284	140
Other revenue	111	56	90	39
Net sales	10,867	5,980	10,430	5,661
Cost of sales (-)	(9,393)	(4,835)	(8,815)	(4,570)
Gross profit	1,474	1,145	1,615	1,091
Breakdown of total passenger and cargo revenue by geographical locations is as follows:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
- Europe	2,882	1,682	2,873	1,618
- Asia and Far East	2,806	1,475	2,638	1,405
- Americas	2,139	1,172	2,119	1,149
- Middle East	889	453	861	447
- Africa	833	436	797	396
International flights	9,549	5,218	9,288	5,015
Domestic flights	882	522	768	467

Breakdown of total passenger and cargo revenue by geographical locations is as follows:	1 January -	1 April -	1 January -	1 April -
	30 June 2025	30 June 2025	30 June 2024	30 June 2024
- Europe	2,882	1,682	2,873	1,618
- Asia and Far East	2,806	1,475	2,638	1,405
- Americas	2,139	1,172	2,119	1,149
- Middle East	889	453	861	447
- Africa	833	436	797	396
International flights	9,549	5,218	9,288	5,015
Domestic flights	882	522	768	467

20. COST OF SALES

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)	Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025	TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES
20. COST OF SALES
Breakdown of the cost of sales is as follows:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Fuel	2,782	1,436	3,123	1,586
Personnel	2,290	1,169	1,753	910
Depreciation and amortisation	1,104	560	1,037	525
Ground services	780	401	717	413
Aircraft maintenance	630	317	517	261
Passenger services and catering	545	290	459	247
Airport	499	273	443	224
Air traffic control	446	245	387	202
Wet lease	128	50	201	109
Transportation	40	20	32	17
Service	26	13	37	24
Insurance	25	12	31	16
Rents	16	8	8	1
Aircraft rent	14	8	15	10
IT and communication	12	6	17	8
Taxes and duties	10	5	10	5
Utility	9	4	8	4
Systems use and associateship	4	2	3	2
Other	33	16	17	6
	9,393	4,835	8,815	4,570

21. GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES

	9,393	4,835	8,815	4,570
21. GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES Breakdown of general administrative expenses is as follows:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Personnel	145	43	135	69
Depreciation and amortisation	39	20	34	17
IT and communication	32	6	9	4
Service	7	3	7	3
Systems use and associateship	8	5	7	3
Taxes and duties	6	3	4	2
Insurance	5	2	5	3
Consultancy	5	3	5	3
Utility	4	2	4	2
Rents	4	2	1	1
Other	8	3	9	5
		92	220	112

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

21. GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES (cont'd)
Breakdown of selling and marketing expenses is as follows:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Commissions and incentives	322	167	330	173
Personnel	241	119	229	112
Reservation systems	119	55	161	83
Advertisement and promotion	72	42	86	51
Call center	22	10	17	10
Service	14	7	17	11
Rents	10	6	5	2
IT and communication	10	7	5	3
Consultancy	9	4	9	4
Taxes and duties	7	4	16	3
Systems use and associateship	5	3	4	2
Depreciation and amortisation	4	2	3	1
Other	49	21	31	14
	884	447	913	469
22. OTHER OPERATING INCOME / EXPENSES
Breakdown of other operating income and expenses are as follows:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Manufacturers' credits	189	53	47	15
Foreign exchange gains from
operational activities, gross	52	19	27	(4)
Non- interest income from banks	23	11	15	10
Rediscount interest income	21	3	-	-
Rent income	17	7	30	20
Insurance, indemnities, penalties	14	4	48	27
Turnover premium from suppliers		6 5	6	4

22. OTHER OPERATING INCOME / EXPENSES

Call center	22	10	17	10
Service	14	7	17	11
Rents	10	6	5	2
IT and communication	10	7	5	3
Consultancy	9	4	9	4
Taxes and duties	7	4	16	3
Systems use and associateship	5	3	4	2
Depreciation and amortisation	4	2	3	1
Other	49	21	31	14
22. OTHER OPERATING INCOME / EXPENSES
Breakdown of other operating income and expenses are as follows:
	1 January -	1 April -	1 January -	1 April -
	30 June 2025	30 June 2025	30 June 2024	30 June 2024
Manufacturers' credits	189	53	47	15
Foreign exchange gains from
operational activities, gross	52	19	27	(4)
Non- interest income from banks	23	11	15	10
Rediscount interest income	21	3	-	-
Rent income	17	7	30	20
Insurance, indemnities, penalties	14	4	48	27
Turnover premium from suppliers		6 5	6	4
Provisions released	3	1	-	-
Delay interest income	2	1	4	2
Reversal of ECL provision	1	(1)	1	-
Other	9	6	39	32
	337	109	217	106
	1 January -	1 April -	1 January -	1 April -
	30 June 2025	30 June 2025	30 June 2024	30 June 2024
Foreign exchange losses from
operational activities, gross	9	(1)	39	7
Indemnity and penalty expenses	8	2	4	2
Provisions	7	6	2	(2)
Rediscount interest expenses	6	2	9	8
Other	4	-	12	10
		9	66
	34			25

23. INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 23. INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES
Breakdown of income from investment activities is as follows:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Interest income from financial
investment	425	180	596	355
Income from investment incentives	125	68	102	51
Gain on sale of financial investments	55	24	50	33
Gain on sale of fixed assets	3	1	3	2
	608	273	751	441
Breakdown of expense from investment activities is as follows:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Losses on the remeasurement of financial investments	53	16	2	-
24. FINANCIAL INCOME/ EXPENSES
Breakdown of financial income is as follows:

	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Losses on the remeasurement of

24. FINANCIAL INCOME/ EXPENSES

Income from investment incentives	125	68	102	51
Gain on sale of financial investments	55	24	50	33
Gain on sale of fixed assets	3	1	3	2
Breakdown of expense from investment activities is as follows:
	1 January -	1 April -	1 January -	1 April -
	30 June 2025	30 June 2025	30 June 2024	30 June 2024
Losses on the remeasurement of
24. FINANCIAL INCOME/ EXPENSES
Breakdown of financial income is as follows:
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Interest income Foreign exchange gains from financial	243	117	68	5
activities, gross	289	190	107	47
Other	11	3	196	124
	543	310	371	176
Breakdown of financial expenses is as follows:
		1 January - 1 April -	1 January -	1 April -

	30 June 2025		30 June 2025	30 June 2024	30 June 2024
Losses on the remeasurement of
24. FINANCIAL INCOME/ EXPENSES
Breakdown of financial income is as follows:
	1 January - 30 June 2025		1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Interest income Foreign exchange gains from financial	243		117	68	5
Other	11		3	196	124
Breakdown of financial expenses is as follows:
		1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Fair value losses on derivative financial
instruments, net		254	56	333	272
Foreign exchange losses on financial
activities, gross (*) Interest expense from leasing liabilities		439 186	304 95	78 228	(71) 102
Interest expense from financial activities			33 17	45	37
Interest expenses on employee benefits		32	16	28	14
Aircraft financing expenses		5	2	12	4
Rediscount interest expense from repayments of aircraft, net		2	2	17	6
		3	1	5	3
Other		954	493	746	367

25. TAX ASSETS AND LIABILITIES

25. TAX ASSETS AND LIABILITIES	(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
Tax liability and tax expense are as follows:
		30 June 2025		31 December 2024
Provisions for corporate tax			102	47
			(106)	(76)
Prepaid taxes and funds
Current income tax assets			(4)	(29)
	1 January - 30 June 2025	1 April - 30 June 2025	1 January - 30 June 2024	1 April - 30 June 2024
Deferred tax income	24	18	143	85
Current period tax (expense) (*)	(126)	(122)	-	-

(*) OECD's Global Minimum Complementary Corporate Tax regulations (Pillar 2) 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. As a result of the calculation in accordance with the guidance issued by the OECD, the Group has booked an additional tax provision of 42 USD for the period between 1 January 2025 and 30 June 2025. Tax effect related to other comprehensive income is as follows:
		1 January - 30 June 2025 Tax			1 January - 30 June 2024 Tax
	Amount before tax	(expense) / income	Amount after tax	Amount before tax	(expense) / income	Amount after tax
Changes in foreign currency translation difference Losses on Remeasuring FVOCI Change in actuarial losses from retirement	26 1	- -	26 1	10 (11)	- 2	10 (9)
pay obligation Change in cash flow hedge reserve	(5) (991)	1 223	(4) (768)	(30) 406	5 (85)	(25) 321
Other comprehensive	(969)	224	(745)	375	(78)	297

25. TAX ASSETS AND LIABILITIES (cont'd)

Corporate Tax

The general corporate income tax rate is %25 in Türkiye, the corporate tax rate is applied with a 5-point discount on the earnings of exporting institutions derived exclusively from exports. 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.

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.

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 can not 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.

25. TAX ASSETS AND LIABILITIES (cont'd)

Deferred Tax (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
25. TAX ASSETS AND LIABILITIES (cont'd)
Deferred Tax (cont'd)
Breakdown of the deferred tax assets / (liabilities) is as follows:
	30 June 2025	31 December 2024
Deferred tax liability	(59)	(65)
Deferred tax asset	637	402
Deferred tax asset	578	337
	30 June 2025	31 December 2024
Fixed assets	439	97
Expense and income accruals	133	112
Provisions for employee benefits	109	57
Change in fair value of derivative instruments	38	(20)
Lease liabilities (net) (**)	31	16
Provisions for unused vacation	29	23
Miles accruals	23	45
Deferred income and prepaid expenses	9	188
Carry forward tax losses	2	2
Other receivables	-	3
Adjustments for passenger flight liabilities	(229)	(189)
Other	(6)	3
Deferred tax asset	578	337
(**) 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 – 30 June 2025 and 2024 are as follows:
	1 January - 30 June 2025	1 January - 30 June 2024
Opening balance at 1 January	337	(282)
Foreign currency translation difference	216	85
Deferred tax income / (expense)	24	(143)
Tax income / (expense) of actuarial losses on
retirement pay obligation	1	(5)
	-	(2)
Tax (expense) from FVOCI

Provisions for unused vacation	29	23
Miles accruals	23	45
Deferred income and prepaid expenses	9	188
Carry forward tax losses	2	2
Other receivables	-	3
Adjustments for passenger flight liabilities	(229)	(189)
Other	(6)	3
Deferred tax asset	578	337
liabilities. The changes of deferred tax (asset) / liability for the year ended 1 January – 30 June 2025 and 2024 are as follows:	1 January -	1 January -
	30 June 2025	30 June 2024
Opening balance at 1 January	337	(282)
Foreign currency translation difference Deferred tax income / (expense)	216 24	85 (143)
Tax income / (expense) of actuarial losses on
retirement pay obligation	1	(5)
Tax (expense) from FVOCI	-	(2)
Deferred tax asset / (liability) at the end of the

25. TAX ASSETS AND LIABILITIES (cont'd)

Deferred Tax (cont'd)

(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 25. TAX ASSETS AND LIABILITIES (cont'd)
Deferred Tax (cont'd) Reconciliation with current tax income / (charge) for the period 1 January – 30 June 2025 and 2024 are as
follows:
	1 January -	1 April -	1 January -	1 April -
Reconciliation of effective tax charge	30 June 2025	30 June 2025	30 June 2024	30 June 2024
Profit from operations before tax		749 795	1,026	858
Tax calculated with the effective tax rate	(187)	(199)	(257)	(215)
Taxation effects on:
- foreign currency translation difference	67	36	90	83
- income from investment certificates	28	14	26	13
		2	229	106
- exception	16
- unused tax incentive	9	9	-	-
- deduction	1	-	-	-
- income from inflation differences	-	-	180	113
- investments accounted by using the equity
method	(6)	5	5	4
- non deductible expenses	(7)	-	(48)	(3)
- effect of the change in the deferred tax rate	(23)	29	(82)	(16)
Tax (expense) / income in statement of profit	(102)	(104)	143	85

26. EARNINGS PER SHARE

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

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

26. EARNINGS PER SHARE (cont'd)

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025
(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
26. EARNINGS PER SHARE (cont'd)
Number of total shares and calculation of profits / losses per share at 1 January – 30 June 2025 and 2024:
	1 January - 30 June 2025	1 January - 30 June 2024
Number of shares outstanding at 1 January (in full)	137,994,458,955	137,995,202,955
Number of shares outstanding at 30 June (in full)	137,993,723,756	137,995,202,955
Weighted average number of shares outstanding during
the period (in full)	137,994,151,112	137,996,156,151
Net profit for the period	647	1,169
Basic earnings per share (Full US Cents) () Diluted earnings per share (Full US Cents) ()	0.47 0.47	0.85 0.85
(*) Basic and diluted earnings per share are the same as there are no dilutive potential ordinary shares.
27. DERIVATIVE FINANCIAL INSTRUMENTS
Breakdown of derivative financial assets and liabilities of the Group as of 30 June 2025, and 31 December 2024 are as follows:
Derivative financial assets	30 June 2025	31 December 2024
Derivative instruments not subject to hedge accounting	78	112
Derivative instruments for fuel prices
	4
cash flow hedge Derivative instruments for cross currency rate		4

27. DERIVATIVE FINANCIAL INSTRUMENTS

(*) Basic and diluted earnings per share are the same as there are no dilutive potential ordinary shares.
27. DERIVATIVE FINANCIAL INSTRUMENTS
Breakdown of derivative financial assets and liabilities of the Group as of 30 June 2025, and 31 December 2024 are as follows:
Derivative financial assets	30 June 2025	31 December 2024
Derivative instruments not subject to hedge accounting	78	112
Derivative instruments for fuel prices cash flow hedge	4	4
Derivative instruments for cross currency rate cash flow hedge	3	-
Derivative instruments for interest rate cash flow hedge	2	3
	87	119
Derivative financial liabilities	30 June 2025	31 December 2024
Derivative instruments not subject to hedge accounting	230	21
Derivative instruments for fuel prices cash flow hedge	27	13
Derivative instruments for cross currency rate cash flow hedge	-	3
	257	37

28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS

Foreign currency risk management

Foreign currency risk management Transactions in foreign currencies expose the Group to foreign currency risk. The foreign currency					28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS
denominated assets and liabilities as monetary and non-monetary items are below:
			30 June 2025
	USD EQUIVALENT	TL	EUR	JPY	CHF	OTHER
1.Trade Receivables	982	240	137	16	8	581
2a.Monetary Financial Assets	5,840	2,403	3,326	15	3	93
2b.Non Monetary Financial Assets	-	-	-	-	-	-
3.Other	537	215	161	2	7	152
4.Current Assets (1+2+3)	7,359	2,858	3,624	33	18	826
5.Trade Receivables	14	-	14	-	-	-
6a.Monetary Financial Assets	610	15	595	-	-	-
6b.Non Monetary Financial Assets	-	-	-	-	-	-
7.Other	673	437	236	-	-	-
8.Non Current Assets (5+6+7)	1,297	452	845	-	-	-
9.Total Assets (4+8)	8,656	3,310	4,469	33	18	826
10.Trade Payables	1,224	816	329	7	3	69
11.Financial Liabilities (*)	2,947	16	2,394	443	54	40
12a.Other Liabilities, Monetary 12b.Other Liabilities, Non Monetary	795	582 -	124 -	4 -	4 -	81 -
13.Current Liabilities (10+11+12)	- 4,966	1,414	2,847	454	61	190
14.Trade Payables	-	-	-	-	-	-
15.Financial Liabilities (*)	8,517	71	5,505	2,260	302	379
16a.Other Liabilities, Monetary	266	266
16b.Other Liabilities, Non Monetary	-	-	-	-	-	-
17.Non Current Liabilities (14+15+16)	8,783	337	5,505	2,260	302	379
18.Total Liabilities (13+17)	13,749	1,751	8,352	2,714	363	569
19.Net asset / liability position of off
balance sheet derivatives (19a-19b) 19a.Off-balance sheet foreign currency	(395)	2,670	(3,016)	-	(18)	(31)
derivative assets	3,944	3,797	147	-	-	-
19b.Off-balance sheet foreign currency derivative liabilities	4,339	1,127	3,163	-	18	31
20.Net foreign currency asset	(5,488)	4,229	(6,899)	(2,681)	(363)	226
/ (liability) position (9-18+19)
21.Net foreign currency asset / liability position of monetary items (IFRS 7.B23) (=1+2a+5+6a-10-11-12a -14-15-16a)	(6,303)	907	(4,280)	(2,683)	(352)	105
22.Fair value of foreign currency
hedged financial assets	-	-	-	-	-	-
23.Hedged foreign currency assets	-	-	-	-	-	-
24.Hedged foreign currency liabilities	8,029	-	5,842	1,412	356	419

(*) 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 8,029 as of 30 June 2025 (31 December 2024: USD 7,801).

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

Notes to the Condensed Consolidated Interim Financial Statements As At And For the Six-Month Period Ended 30 June 2025 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)
Foreign currency risk management (cont'd)
			31 December 2024
	USD
1.Trade Receivables	EQUIVALENT 834	TL 269	EUR 131	JPY 12	CHF 10	OTHER 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)	631	420	201	-	-	10
9.Total Assets (4+8)	8,124	4,515	2,797	109	21	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 20.Net foreign currency	1,713	95	1,618	-	-	-
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)	(6,247)	1,871	(5,921)	(1,772)	(331)	(94)
(=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	7,801	-	5,662	1,371	338	430

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

Foreign currency risk management (cont'd)

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

and represents management's assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the Group where the denomination of the loan is in a currency other than the currency of the lender or the borrower. A positive number indicates an increase in profit or loss with a same effect on equity. The Group accounted investment loans and aircraft financial liabilities in scope of cash flow hedge accounting and foreign exchange income/expense arising from these loans and liabilities are recognized in equity. 10% increase and decrease effect of foreign exchange rates are calculated with the same method and the calculated foreign exchange gains/losses are presented as hedged portion in the foreign exchange sensitivity table. Furthermore, the hedged portion of foreign exchange gains/losses via forwards and cross currency swap transactions is classified as the amount hedged against USD in the statement of exchange rate sensitivity analysis.
		30 June 2025
	Profit / (Loss)
	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	423	(423)	-	-
2- Part hedged from TL risk (-)	-	-	-	-
3- TL net effect (1+2)	423	(423)	-	-
4- Euro net asset / liability	(690)	690	(584)	584
5- Part hedged from Euro risk (-)	584	(584)	-	-
6- Euro net effect (4+5)	(106)	106	(584)	584
7- JPY net asset / liability	(268)	268	(141)	141
8- Part hedged from JPY risk (-)	141	(141)	-	-
9- JPY net effect (7+8)	(127)	127	(141)	141
10- CHF net asset / liability	(36)	36	(36)	36
11- Part hedged from CHF risk (-)	36	(36)	-	-
12- CHF net effect (10+11)	-	-	(36)	36
13- Other foreign currency net asset / liability	23	(23)	(42)	42
14- Part hedged other foreign currency risk (-)	42	(42)	-	-
15- Other foreign currency net effect (13+14)	65	(65)	(42)	42
TOTAL (3 + 6 + 9 + 12 + 15)	255	(255)	(803)	803

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

	(All amounts are expressed in Million US Dollars (USD) unless otherwise stated.)
28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)
Foreign currency risk management (cont'd)
	Profit / (Loss)	31 December 2024
	Before Tax If foreign currency appreciated 10 %	If foreign currency depreciated 10 %	Equity If foreign currency appreciated 10 %	If foreign currency depreciated 10 %
1- TL net asset / liability	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

s 29. GOVERNMENT GRANTS AND INCENTIVES

Incentive certificates dated, 28 December 2010, 18 December 2014, 9 August 2018, 11 September 2018, 12 December 2023 and 28 February 2025 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.

As of 30 June 2025, The Group has discounts and exemptions amounting to USD 4,344 that it can benefit from in the foreseeable future (31 December 2024: USD 4,225). As of 1 January - 30 June 2025, an investment incentive discount of USD 357 has been used. (31 December 2024: USD 339).

• 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.

30. EVENTS AFTER THE BALANCE SHEET DATE

None.