Interim report
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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Financial Statements As at and For The Six - Month Period Ended 30 June 2026
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PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. Kılıçali Paşa Mah. Meclis-i Mebusan Cad. No: 8 Galataport İstanbul D Blok Beyoğlu/İstanbul T: +90 (212) 326 6060 Mersis Numaramız: 0-1460-0224-0500015 www.pwc.com.tr 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 2026 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 th is 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, 4 August 2026
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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Financial Position as at 30 June 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 1 Reviewed Audited ASSETS Notes 30 June 2026 31 December 2025 Non-Current Assets Financial Investments 6 3,247 2,683 Other Receivables -Related Parties 8 56 53 -Third Parties 9 2,246 1,975 Investments Accounted for Using Equity Method 3 728 763 Investment Property 43 43 Property and Equipment 11 9,039 8,463 Right of Use Assets 11 21,242 19,786 Intangible Assets - Other Intangible Assets 12 116 180 - Goodwill 27 27 Prepaid Expenses 2,371 2,031 Deferred Tax Assets 25 560 413 TOTAL NON-CURRENT ASSETS 39,675 36,417 Current Assets Cash and Cash Equivalents 5 1,725 2,008 Financial Investments 6 4,584 4,265 Trade Receivables -Related Parties 8 28 36 -Third Parties 1,455 1,033 Other Receivables -Third Parties 9 832 919 Derivative Financial Instruments 27 363 247 Inventories 1,106 968 Prepaid Expenses 494 421 Current Income Tax Assets 25 129 - Other Current Assets 280 289 TOTAL CURRENT ASSETS 10,996 10,186 TOTAL ASSETS 50,671 46,603 The accompanying notes are an integral part of these consolidated financial statements.
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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Financial Position as at 30 June 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 2 Reviewed Audited LIABILITIES AND EQUITY Notes 30 June 2026 31 December 2025 Equity Share Capital 18 1,597 1,597 Share Premium 18 1 1 Treasury Shares 18 (54) (47) Items That Will Not Be Reclassified to Profit or Loss -Actuarial Losses on Retirement Pay Obligation 18 (299) (287) Items That May Be Reclassified to Profit or (Losses) -Foreign Currency Translation Differences 18 (163) (164) -Fair Value Gains / (Losses) on Hedging Instruments Entered into for Cash Flow Hedges 18 65 (138) -Gains on Remeasuring FVOCI 18 68 71 Restricted Profit Reserves 18 91 84 Previous Years Profit 20,188 17,285 Net Profit for the Period 425 2,910 Equity of the Parent 21,919 21,312 Non-Controlling Interests - 2 TOTAL EQUITY 21,919 21,314 Non-Current Liabilities Long-Term Borrowings 7 1,883 1,141 Long-Term Lease Liabilities 7 and 13 13,698 12,879 Other Payables -Third Parties 35 29 Deferred Revenue 10 64 76 Long-Term Provisions -Provisions for Employee Termination Benefits 16 314 282 -Other Provisions 233 195 Deferred Tax Liabilities 25 25 73 Other Non-Current Liabilities 354 315 TOTAL NON-CURRENT LIABILITIES 16,606 14,990 Current Liabilities Short-Term Borrowings 7 1,559 1,632 Short-Term Portion of Long-Term Borrowings 7 231 145 Short-Term Portion of Lease Liabilities 7 and 13 2,223 2,007 Trade Payables -Related Parties 8 417 309 -Third Parties 1,412 1,523 Payables Related to Employee Benefits 523 468 Other Payables -Related Parties 8 25 31 -Third Parties 418 242 Derivative Financial Instruments 27 223 148 Deferred Revenue 10 4,816 3,524 Current Income Tax Provision 25 - 10 Short-Term Provisions -Provisions for Employee Benefits 14 142 131 -Other Provisions 14 23 18 Other Current Liabilities 134 111 TOTAL CURRENT LIABILITIES 12,146 10,299 TOTAL LIABILITIES AND EQUITY 50,671 46,603 The accompanying notes are an integral part of these consolidated financial statements.
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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income For the Six-Month Period Ended 30 June 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 3 Reviewed Not Reviewed Reviewed Not Reviewed PROFIT OR LOSS Notes 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Revenue 19 13,122 7,205 10,867 5,980 Cost of Sales (-) 20 (12,170) (6,747) (9,393) (4,835) GROSS PROFIT 952 458 1,474 1,145 General Administrative Expenses (-) 21 (301) (128) (263) (92) Selling and Marketing Expenses (-) 21 (989) (504) (884) (447) Other Operating Income 22 315 103 337 109 Other Operating Expenses (-) 22 (98) 7 (34) (9) OPERATING (LOSS) / GAIN BEFORE INVESTMENT ACTIVITIES (121) (64) 630 706 Income from Investment Activities 23 1,031 534 608 273 Expenses for Investment Activities (-) 23 (96) (13) (53) (16) Share of Investments' (Loss) / Profit Accounted for Using The Equity Method 3 (52) 10 (28) 15 OPERATING PROFIT 762 467 1,157 978 Financial Income 24 326 158 543 310 Financial Expenses (-) 24 (791) (429) (954) (493) Monetary Gain 13 12 3 - PROFIT BEFORE TAX 310 208 749 795 Tax Income 113 (11) (102) (104) Current Income Tax (Expense) 25 (102) (100) (126) (122) Deferred Tax Income 25 215 89 24 18 NET PROFIT FOR THE PERIOD 423 197 647 691 Attributable to: Non-controlling interest (2) (1) (3) (3) Equity of the Parent 425 198 650 694 OTHER COMPREHENSIVE INCOME 0 Items That May Be Reclassified To Profit or Loss 201 (75) (741) (501) Currency Translation Adjustment 1 (21) 26 210 (Losses) / Gains on Investments Remeasured FVOCI (4) 106 1 13 Fair Value Gains / (Losses) on Hedging Instruments Entered into for Cash Flow Hedges 242 (94) (956) (666) Fair Value Gains / (Losses) Hedging Instruments of Investment Accounted by Using the Equity Method Entered into for Cash Flow Hedges 28 (88) (35) (21)0 Tax (Expense) / Income of Other Comprehensive Income (66) 22 223 152 Items That Will Not Be Reclassified To Profit or Loss (12) (18) (4) (13) Actuarial Gains on Retirement Pay Obligation (15) (23) (5) (16) Tax income of Other Comprehensive Income 3 5 1 3 OTHER COMPREHENSIVE INCOME / (EXPENSE) FOR THE PERIOD 189 (93) (745) (514) TOTAL COMPREHENSIVE INCOME / (EXPENSE) FOR THE PERIOD 612 104 (98) 177 Attributable to: Non-controlling interest (2) (1) (3) (3) Equity holders of the parent 614 105 (95) 180 Basic Earnings Per Share (Full US Cents) 26 0.31 0.14 0.47 0.50 Diluted Earnings Per Share (Full US Cents) 26 0.31 0.14 0.47 0.50 The accompanying notes are an integral part of these consolidated financial statements.
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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Changes in Equity For the Six-Month Period Ended 30 June 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) The accompanying notes are an integral part of these consolidated financial statements. 4 Items That Will Not Be Reclassified Subsequently To Profit or Loss Share Capital Share Premium Treasury Shares Actuarial Losses Retirement Pay Obligation Foreign Currency Translation Differences Fair Value Gains on Hedging Instruments Entered Into For Cash Flow Hedges Gains on Remeasuring FVOCI Restricted Profit Reserves Previous Years Profit Net Profit for The Period Equity Holders of the Parent Non- controlling Interests Total Equity As of 1 January 2026 1,597 1 (47) (287) (164) (138) 71 84 17,285 2,910 21,312 2 21,314 Transfers - - - - - - - 7 2,903 (2,910) - - - Total comprehensive income - - - (12) 1 203 (3) - - 425 614 (2) 612 Increase through treasury share transactions - - (7) - - - - - - - (7) - (7) As of 30 June 2026 1,597 1 (54) (299) (163) 65 68 91 20,188 425 21,919 - 21,919 Retained Earnings Items That May Be Reclassified Subsequently To Profit or Loss Items That Will Not Be Reclassified Subsequently To Profit or Loss Share Capital Share Premium Treasury Shares Actuarial Losses Retirement Pay Obligation Foreign Currency Translation Differences Fair Value Gains on Hedging Instruments Entered Into For Cash Flow Hedges Gains on Remeasuring FVOCI Restricted Profit Reserves Previous Years Profit Net Profit for The Period Equity Holders of the Parent Non- controlling Interests Total 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 - - 1 - - - - - (243) - (242) - (242) Total comprehensive income - - - (4) 26 (768) 1 - - 650 (95) (3) (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 May Be Reclassified Subsequently To Profit or Loss Retained Earnings
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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Cash Flows For the Six-Month Period Ended 30 June 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 5 Reviewed Reviewed Notes 1 January - 30 June 2026 1 January - 30 June 2025 423 647 633 1,247 Adjustments for Depreciation and Amortisation Expense 11 and 12 1,318 1,147 Adjustments for Provisions Related to Employee Benefits 14 and 16 41 55 Adjustments for Other Provisions 44 1 Adjustments for Doubtful Receivables 32 1 Adjustments for Interest Income 23 and 24 (935) (668) Adjustments for Interest Expense 24 351 253 Adjustments for Unrealised Foreign Exchange Losses 14 202 Adjustments for Fair Value (Gains)/ Losses on Derivative Financial Instruments 24 (34) 254 Adjustments for Undistributed Losses of Associates 3 52 28 Adjustments for Tax (Income)/Expense 25 (113) 102 Adjustments for Losses / (Gains) Arised from Sale of Property, Plants and Equipments 23 8 (3) Other Adjustments for Non-Cash Transactions 23 (145) (125) 739 634 Decrease/(Increase) in Trade Receivables from Related Parties 8 8 (33) Increase in Trade Receivables from Third Parties (447) (89) (Increase)/Decrease in Other Receivables from Related Parties 8 (3) 1 Decrease / (Increase) in Other Receivables from Third Parties 9 and 23 161 (103) Increase in Inventories (138) (133) Increase in Prepaid Expenses (413) (223) Increase/(Decrease) in Trade Payables to Related Parties 8 108 (1) (Decrease)/Increase in Trade Payables to Third Parties (111) 157 Increase / (Decrease) in Payables Due to Employee Benefits 55 (97) Decrease/(Increase) in Other Payables to Related Parties 8 (6) 125 Increase/(Decrease) in Other Payables to Third Parties 182 (130) Increase in Deferred Revenue 1,334 1,118 Decrease in Other Assets 9 42 Cash Flows From Operations 1,795 2,528 Payments for Provisions Related with Employee Benefits 16 (9) (5) Income Taxes Paid 25 (264) (77) 1,522 2,446 Proceeds From Sales of Property, Plant and Equipment and Intangible Assets 11,12 and 23 10 20 Payments For Purchasing of Property, Plant and Equipment and Intangible Assets (997) (912) Payments For Purchasing and Sales of Other Financial Assets 6 (883) (718) Other Cash Advances and Loans (249) 40 Dividends Received 3 - 2 Interest Received 23 745 439 (1,374) (1,129) Payments to Acquire Entity's Own Shares (7) (5) Proceeds From Loans 7 3,271 1,118 Repayments of Loans 7 (2,413) (1,678) Payments of Lease Liabilities 7 (1,157) (993) Dividend Paid to Shareholders - (114) Interest Paid (194) (162) Interest Received 5 and 24 210 243 (290) (1,591) (142) (274) (121) 53 (263) (221) 5 1,941 2,556 5 1,678 2,335 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD Net Cash Flows Used In Investing Activities CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES Net Cash Used in Financing Activities Net Change in Cash and Cash Equivalents Before Effect of Foreing CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD Effects of Foreign Exchange on Cash and Cash Equivalents Net Change in Cash and Cash Equivalents Net Profit for the Period Adjustments to Reconcile Profit Changes in Working Capital Net Cash From Operating Activities CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES The accompanying notes are an integral part of these consolidated financial statements.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 6 1. GROUP ORGANIZATION AND ITS OPERATIONS Türk Hava Yolları Anonim Ortaklığı (the “Company” or “THY”) was incorporated in Türkiye in 1933. As of 30 June 2026 , and 31 December 2025 , the shareholders and their respect ive shareholdings in the Company are as follows: 30 June 2026 31 December 2025 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 % Total 100.00 % 100.00 % The Company is controlled by Türkiye Wealth Fund. 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 numb er of employees working for the Gr oup as of 30 June 2026 is 66,758 (31 December 2025 : 66,649). The average number of employees wor king for the Group for the period ended 30 June 2026, and 2025 are 66,788 and 64,272 respectively.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 7 1. GROUP ORGANIZATION AND ITS OPERATIONS (cont’d) Subsidiaries and Joint Ventures The table below sets out the consolidated subsidia ries of the Group as of 30 June 2026, and 31 December 2025: Country of Company Name Principal Activity 30 June 2026 31 December 2025 Registration Türk Hava Yolları Teknik A.Ş. (Turkish Technic) Aircraft Maintenance 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) Informatics and Technology 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 Systems 100% 100% Türkiye THY Ortak Sağlık ve Güvenlik Birimi Hizmetleri A.Ş. Health Services 100% 100% Türkiye THY Gayrimenkul Yatırım Hizmetleri A.Ş. (Turkish Construction) Management of Various Investment Projects 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 Ownership Rate
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 8 1. 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 2026, and 31 December 2025: Country of Company Name Principal Activity 30 June 2026 31 December 2025 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) Aviation Ground Handling 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) Passenger and Cargo 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 Ownership Share and Voting Power 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 Ak aryakıt are controlled jointly by the Group and other shareholders.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 9 2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS 2.1 Basis of Presentation Statement of Compliance The condensed consolidated interim fina ncial statements as at and for the six-month period ended 30 June 2026 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 2025. Board of Directors has approved the condensed consol idated interim financia l statements as of 30 June 2026 on 4 August 2026. General Assembly and the related regulatory bodies have the authority to modify the statutory financial statements. Basis of Preparation The consolidated financial statements, e xcept for some financial instruments that are stated at fair va lue, have been p repared on the historica l cost basis. Historical cost is generally based on the fair value of the consideration paid in exchange for goods or services. Functional and Reporting Currency Functional currency The consolidated financial statements of the Group are presented in USD, which is the functional currency of the Company. Details of the functional currencies of the subsidiaries of the Company are as follows; Subsidiaries Functional currencies Turkish Technic USD TAFA USD THY Uluslararası Yatırım ve Taşımacılık A.Ş. USD Turkish Technology TL Widect USD TSS TL THY Özel Güvenlik ve Koruma Hizmetleri A.Ş. TL AJet USD TKPAY TL THY Ortak Sağlık ve Güvenlik Birimi Hizmetleri A.Ş. TL THY Gayrimenkul Yatırım Hizmetleri A.Ş. TL THY Spor A.Ş. TL TCI USD TSI Seats Inc. USD Although the curren cy of the coun try in which the Company is registered is Turkish Lira ( “TL”), the Company’s functional currency is dete rmined as USD. USD is used to a signif icant 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 a nd a s th e functional currency. A ll currencies other t han those selected for measuring items i n 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 financ ial statements and notes are rounded the nearest million (USD 000,000).
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 10 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 2026, an adjustment has been made in accordance with the requirements of IAS 29, Financial Reporting in Hyperinflationar y Economies (“ IAS29”) regarding the changes in the general pu rchasing power of TL. In terms of IAS 29 it i s required that fina ncial sta tements prepared in the cu rrency i n circulation in the economy with hyperinflation should be expressed in the unit of mea surement 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 2 9 is a three-year cumulati ve inflation rate app roaching or exceeding 100%. The correcti on was made us ing the correction factor obtained from the Con sumer Price Index in Türkiye published by Turkish Statistical Institute (“TUIK”). The indices and ad justment factors used to prepare the consolidated financial statements are as follows: Date Index (*) Adjustment Factor Compound Inflation Rate 30 June 2026 129.99 1.00000 206% 31 December 2025 110.39 1.17758 211% 30 June 2025 98.40 1.32109 220% (*) As of 2026, the base year for index series has been updated to 2025=100 by Türkiye İstatistik Kurumu. Accordingly, index values previously reported using different reference years and scaling methodologies have been restated to align with the new base year. To ensure comparability, historical data have also been retrospectively adjusted on a consistent 2025=100 basis. IAS 29 is applicable for the subsidiaries whose functional currencies are TL. These subsidiaries are Turkish Technology, TSS, THY Özel G üvenlik ve Ko ruma Hi zmetleri 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 she et date, and corresponding figur es for previous p eriods are restated in the same terms. • Monetary assets and liabilities that are carried at amounts current at the balance shee t date are not restated because they are already expressed in terms of the mone tary 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 othe r comprehensive inc ome o f the subsidiaries whose functional currencies are TL are translated into USD using the closing rate as of 30 June 2026 . T he combined effect of the restating in accorda nce with IAS 29 and translation in accordance with IAS 21 is presented as currency translation reserve in other comprehensive income.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 11 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) belo w. Financial statements of the subsidiaries and joi nt ventures are adjusted where applicable in o rder 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 a ccounted for using.the.equity.method. Under the equity method, joint ventures are initially recognized at cost and adjusted to recognize any distributions r eceived, impairments in the joint ventures and the Group’s share of the pr ofit or loss after the dat e of acquisition. Joint ventures’ losses that exceed the Group’s share are not recognized, unless t he 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 fin ancial posit ion and c onsolidated statements of profit or loss. 2.2 Changes and Errors in Accounting Policies Estimates The significant estimat es and assumptions used in the preparation of these consolidated financial statements as at and f or the period ended 30 June 2026 are consistent with those used in the preparation of the Group’s consolidated financial statements as at and for the year ended 31 December 2025. 2.3 Summary of Significant Accounting Policies The significant estimat es and assumptions used in the preparation of these c onsolidated financial statements as at and f or the period ended 30 June 2026 are consistent with those used in the preparation of the Group’s consolidated financial statements as at and for the year ended 31 December 2025.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 12 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 2026: Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instr uments; effective from annual reporting periods beginning on or after 1 January 2026 (earlier application permitted). 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 inst ruments 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 ch anges 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 list of amended Accounting Standard and accompanying guidance include the following: • 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. Amendment to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity; effective from annual periods beginning on or after 1 January 2026 (earlier application permitted) . 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 s ource of its generation depends on uncontrollable natural conditions (such as the weather). These are described as ‘contracts referencing nature-dependent electricity’. The Group continues its efforts to comply with these standards.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 13 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 2026: Amendments to IAS 21 - Translation to a Hyperinflationary Prese ntation Currency; effective from annual periods beginning on or after 1 January 202 7 (earlier application permitted) . These narrow-scope amendments specify the translation procedures for an entity whose presentation currency is that of a hyperinflationary economy. The entity applies the amendments if: • its functional currency is that of a non-hyperinflationary economy and it is translating its results and financial position into the currency of a hyperinflationary economy; or • it is translating into the cu rrency of a hyperinflationary economy the results and financial position of a foreign operation whose functional currency is that of a non-hyperinflationary economy. The amendments aim to improve the usefulness of the resulting information in a cost -effective manner and reduce diversity in practice. IFRS 18 Presentation and Disclosure in Financial Statements; effective from annual periods beginning on or after 1 January 2027 (earlier application permitted) . This is the new standard on presentation and disclosure in financial statements, with a focus o n 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 c ertain 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 disa ggregation which apply to the primary financial statem ents and notes in general. To comply with paragraph 30 of IAS 8, it is expected that March year-end disclosures should about: • the nature of the changes, • the fact that IFRS 18 application is required for annual periods beginning on or after 1 January 2027, • the planned adoption date, and either: o known or reasonably estimable information relevant to assessing the possible impact that application of IFRS 18 will have on the entity's financial statements in the period of initial application; or o if that impact is not known or reasonably estimable, a statement to that effect. When preparing disclosures related to the adoption of IFRS 18 to comply with paragraph 30 of IAS 8, entities should consider the following principles: a. Disclosures are expected to become increasingly detailed as entities ’ implementation process progresses toward 2027. The level of detail that an entity includes in its disclosures will depend on the progress o f its implementation activities, including those related to internal contr ols. For the year ending 31 March 2026, entities that have yet to make significant progress in implementation might only disclose that they are actively assessing the impact of IFRS 1 8 and that more comprehensive disclosures cannot reasonably be provided.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 14 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 effecti ve as of 30 June 2026 (cont’d): b. Where appropriate and reliable, consider including quantitative information. It may be appropriate to disclose preliminary figures, when the company has an appropriate and reliable basis for making such disclosures and provides clear explanations regarding their provisional n ature. For example, an entity might quantify the effects on profit and loss subtotals. If the quantitative impact is not reasonably estimable, a statement to that effect should be included. An entity may disclose known and reasonably quantifiable impacts, but it is not expected to early provide IFRS 18 disclosur es, such as an MPM reconciliation, before the application date. c. Consider alignment with other public communications. If management has publicly detailed anticipated impacts, such as in an inve stor presentation, the IAS 8 financial statement disclosures should be consistent with these communications. Disclosures should be based on the information available through the date of issuance of the financial statements, not only the end of the reporting period. IFRS 19 Subsidiaries without Public Accountability: Disclosures ’; effective from annual periods beginning on or after 1 January 2027 (earlier application permitted) . This new standard and amendments 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 disc losure requirements balance the inform ation 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 ultima te or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards. Amendment to IFRS 19 Subsidiaries without Public Accountability: Disclosures’; effective from annual periods beg inning on or after 1 January 2027 (earlier application permitted). In developing the reduced disclosure requirements in IFRS 19, the IASB considered the disclosure requirements in other IFRS Accounting Standards as at 28 February 2021. When I FRS 19 was issued, it did not contain reduced versions of any disclosure requirements that were added or amended after that date. Subsequently, the IASB issued these amendments to help eligible subsidiaries by reducing disclosure requirements for Standards and amendments issued between February 2021 and May 2024, specifically: • IFRS 18, ‘Presentation and Disclosure in Financial Statements’; • Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7); • International Tax Reform—Pillar Two Model Rules (Amendments to IAS 12); • Lack of Exchangeability (Amendments to IAS 21); and • Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7). IFRS 20 Regulatory Assets and Regulatory Liabilities ; effective from annual periods beginn ing on or after 1 January 2029 (earlier application permitted). This is a new Accounting Standard for entities subject to a specific type of rate regulation. It aims to help investors better understand how that rate reg ulation affects an entity’s financial performance, financial position and its prospects for future cash flows. The effects of the above -mentioned changes on the financial position and performance of the Group are being assessed.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 15 2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d) 2.5 Determination of Fair Values Various accounting policies and explanations of the Grou p necessitate to determine the fair value of both financial and no n-financial assets and li abilities. If applicable, additio nal 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: Va riables o btained direct ly (via pric es) or indirectly (by deriving from prices) whi ch are observable for similar assets and liabilities other than quoted prices mentioned in Level 1. - Level 3: Variables, whi ch are not related to obse rvable market vari able f or assets and liabiliti es (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. 2.7 Other The impacts of the conflicts that began in the Middle Ea st in March 2026 on fuel prices, the Group’s and Middle East-based airline’s operations in the region are being closely monitored, and necessary actions are being taken.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 16 3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD The joint ventures accounted for using the equity method are as follows: 30 June 2026 31 December 2025 SunExpress 251 354 Turkish DO&CO 118 100 TEC 108 102 TGS 108 101 TFS Akaryakıt 74 48 THY Opet 55 45 Goodrich 9 8 We World Express 5 5 728 763 Share of investments’ profit / (loss) accounted by using the equity method are as follows: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 TFS Akaryakıt 34 26 5 2 Turkish DO&CO 15 8 16 10 THY Opet 7 1 2 3 TEC 5 4 4 (1) TGS 4 8 9 5 Goodrich 1 - - - SunExpress (118) (37) (64) (4) Air Albania (*) - - - - (52) 10 (28) 15 (*) Since 31 December 2019, the loss of Air Albania, which exceeds the Group’s total share in the joint venture’s shareholders’ equity, has no t been accounted i n the consolidated financial statements. As of 30 June 2026, the loss is USD 7. (The loss as of 31 December 2025: USD 4). Movement in investments accounted by using the equity method is as follows: 1 January - 1 January - 30 June 2026 30 June 2025 Opening balance 763 644 Other comprehensive income / (expense) recognized in equity 16 (28) Foreign currency translation difference 1 31 Dividends to shareholders - (2) Share of net (loss) (52) (28) Closing balance 728 617
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 17 3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD (cont’d) SunExpress TEC Turkish DO&CO TGS TFS Akaryakıt THY Opet Other Total Total assets 3,841 455 427 448 757 243 47 6,218 Current assets 1,414 382 285 177 738 188 45 3,229 Non-current assets 2,427 73 142 271 19 55 2 2,989 Total liabilities 3,339 235 191 231 461 133 14 4,604 Current liabilities 1,647 173 169 161 461 112 14 2,737 Non-current liabilities 1,692 62 22 70 - 21 - 1,867 Total equity 502 220 236 217 296 110 33 1,614 Other comprehensive income / (expense) 21 - (28) (59) - (3) - (69) Group's share in total equity 251 108 118 108 74 55 14 728 Revenue 625 210 238 267 1,524 277 21 3,162 (Loss) / Profit for the period (74) 7 16 15 106 4 1 75 Group's share in joint venture's (loss) / profit for the period (37) 4 8 8 26 1 - 10 Revenue 859 373 433 501 2,371 442 41 5,020 (Loss) / Profit for the period (236) 10 29 8 137 15 3 (34) Group's share in joint venture's (loss) / profit for the period (118) 5 15 4 34 7 1 (52) 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2026
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 18 3. INVESTMENTS ACCOUNTED BY USING THE EQUITY METHOD (cont’d) SunExpress TEC Turkish DO&CO TGS TFS Akaryakıt THY Opet Other Total Total assets 3,112 336 370 429 486 173 44 4,950 Current assets 623 266 239 183 472 119 41 1,943 Non-current assets 2,489 70 131 246 14 54 3 3,007 Total liabilities 2,405 127 170 228 292 84 13 3,319 Current liabilities 822 66 149 179 291 66 13 1,586 Non-current liabilities 1,583 61 21 49 1 18 - 1,733 Total equity 707 209 200 201 194 89 31 1,631 Other comprehensive income / (expense) (24) (4) (29) (55) - (2) - (114) Group's share in total equity 354 102 100 101 48 45 13 763 Revenue 606 158 193 225 758 176 22 2,138 (Loss) / Profit for the period (8) (2) 20 10 8 6 - 34 Group's share in joint venture's (loss) / profit for the period (4) (1) 10 5 2 3 - 15 Revenue 833 329 358 411 1,433 321 42 3,727 (Loss) / Profit for the period (128) 9 32 17 20 4 - (46) Group's share in joint venture's (loss) / profit for the period (64) 4 16 9 5 2 - (28) 1 April - 30 June 2025 1 January - 30 June 2025 31 December 2025
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 19 4. SEGMENT REPORTING Group management makes decisions regarding resource allocation to segments based upon the results and the activities of its air transport and aircraft t echnical maintenance services segments for the pur pose 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: Air Transport (“Aviation”) The G roup’s aviation activities consist of ma inly domestic and internationa l passenger and cargo air transportation. Technical Maintenance Services (“Technical”) The Group’s technical activities consist of mainly aircraft repair and maintenance services and providing technical and infrastructure support related to the aviation sector. 4.1 Total Assets and Liabilities Total Assets 30 June 2026 31 December 2025 Aviation 51,188 47,540 Technical 2,392 2,450 Total 53,580 49,990 Less: Eliminations due to consolidation (2,909) (3,387) Total assets in consolidated financial statements 50,671 46,603 Total Liabilitites 30 June 2026 31 December 2025 Aviation 28,501 25,501 Technical 913 725 Total 29,414 26,226 Less: Eliminations due to consolidation (662) (937) Total liabilitites in consolidated financial statements 28,752 25,289
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 20 4. SEGMENT REPORTING (cont’d) 4.2 Net Profit / (Loss) Segment Results: 1 January - 30 June 2026 Aviation Technic Inter-segment elimination Total Sales to External Customers 12,826 296 - 13,122 Inter-Segment Sales 327 955 (1,282) - Revenue 13,153 1,251 (1,282) 13,122 Cost of Sales (-) (12,169) (1,278) 1,277 (12,170) Gross Profit / (Loss) 984 (27) (5) 952 Administrative Expenses (-) (416) (67) 182 (301) Selling and Marketing Expenses (-) (980) (13) 4 (989) Other Operating Income 507 55 (247) 315 Other Operating Expenses (-) (113) (51) 66 (98) Operating (Loss) Before Investment Activities (18) (103) - (121) Income from Investment Activities 1,031 - - 1,031 Expenses from Investment Activities (96) - - (96) Share of Investments' (Loss) / Profit Accounted for Using The Equity Method (58) 6 - (52) Operating Profit / (Loss) 859 (97) - 762 Financial Income 316 14 (4) 326 Financial Expense (-) (775) (20) 4 (791) Monetary Gain 13 - - 13 Profit / (Loss) Before Tax 413 (103) - 310 Tax Income 105 8 - 113 Current Tax Expense (-) (102) - - (102) Deferred Tax Income 207 8 - 215 Net Profit / (Loss) For The Period 518 (95) - 423
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 21 4. SEGMENT REPORTING (cont’d) 4.2 Net Profit / (Loss) (cont’d) Segment Results (cont’d): 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 (-) (91) (21) 78 (34) Operating Profit Before 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 4.3 Investing Activities 1 January - 30 June 2026 Aviation Technic Inter-segment elimination Total Purchase of property and equipment, intangible assets, and right of use assets 2,837 291 - 3,128 Current year depreciation and amortization charge 1,235 83 - 1,318 Share of Investments' (Loss) / Profit Accounted for Using The Equity Method (58) 6 - (52)
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 22 4. SEGMENT REPORTING (cont’d) 4.3 Investing Activities (cont’d) 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 Accounted for Using The Equity Method (32) 4 - (28) 5. CASH AND CASH EQUIVALENTS 30 June 2026 31 December 2025 Cash 1 1 Banks – Time deposits 1,337 1,164 Banks – Demand deposits 299 843 Investment Fund 88 - 1,725 2,008 Details of the time deposits as of 30 June 2026, and 31 December 2025 are as follows: Original Amount Currency Effective Interest Rate Maturity 30 June 2026 33,347 TL 32.18% -35.89% September 2026 761 504 EUR 2.66% -2.89% August 2026 576 1,337 Original Amount Currency Effective Interest Rate Maturity 31 December 2025 33,865 TL 32.79% - 45.76% March 2026 853 262 EUR 2.66% - 3.00% February 2026 311 1,164 Reconciliation with statement of cash flows as of 30 June 2026, and 2025 are as follows: 30 June 2026 30 June 2025 Cash and cash equivalents 1,725 2,486 Interest accruals (-) (47) (151) Cash and cash equivalents in statement of cash flows 1,678 2,3354
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 23 6. FINANCIAL INVESTMENTS Short-term financial investments are as follows: 30 June 2026 31 December 2025 Fair value through profit and loss (FVTPL) - Investment Fund 259 338 Fair value through other comprehensive income (FVOCI) (*) - Corporate debt securities 2,282 3,519 - Government debt securities 402 110 Time deposits with maturity more than 3 months 1,641 298 4,584 4,265 Time deposit with maturity of more than 3 mo nths as of 30 June 2026 , and 31 December 2025 is as follows: Amount Currency Effective Interest Rate Maturity 30 June 2026 66,000 TL 32.96% - 40.05% June 2027 1,590 45 EUR 3.22% - 3.30% December 2026 51 1,641 Amount Currency Effective Interest Rate Maturity 31 December 2025 10,000 TL 33.21% - 36.45% December 2026 238 51 EUR 2.66% April 2026 60 298 Long-term financial investments are as follows: 30 June 2026 31 December 2025 FVOCI (*) - Corporate debt securities 1,668 1,346 - Government debt securities 1,134 1,312 Time deposits with maturity more than 1 year 444 24 Other 1 1 3,247 2,683 (*) Eurobonds with a market value of USD 499 have been collateralized for a 3 -year term financing, with all rights and rewards retained by the Group. Time deposit with maturity of more than 1 year as of 30 June 2026, and 31 December 2025 is as follows: Amount Currency Effective Interest Rate Maturity 30 June 2026 20,500 TL 36.30% - 40.05% September 2027 444 Amount Currency Effective Interest Rate Maturity 31 December 2025 1,000 TL 36.09% January 2027 24
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 24 6. FINANCIAL INVESTMENTS (cont’d) Contractual maturity dat es of financ ial inve stments me asured at FVOCI as of 30 June 2026 , and 31 December 2025 are as follows: 30 June 2026 31 December 2025 Less than 1 year 2,684 3,629 1 to 5 years 2,130 1,970 Over 5 years 672 688 5,486 6,287 7. BORROWINGS Short-term borrowings are as follows: 30 June 2026 31 December 2025 Bank borrowings 1,559 1,632 Short-term portions of long-term borrowings are as follows: 30 June 2026 31 December 2025 Lease liabilities (Note: 13) 2,223 2,007 Bank borrowings 231 145 2,454 2,152 30 June 2026 31 December 2025 Lease liabilities (Note: 13) 13,698 12,879 Bank borrowings 1,883 1,141 15,581 14,020 The maturity analysis for bank loans as of as of 30 June 2026, and 31 December 2025 are as follows: 30 June 2026 31 December 2025 Less than 1 year 1,790 1,777 Between 1 – 5 years 1,883 1,138 Over 5 years - 3 3,673 2,918
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 25 7. BORROWINGS (cont’d) Details of bank borrowings as of 30 June 2026, and 31 December 2025 are as follows: Original Amount Currency Interest Rate Type Effective Interest Rate Payment Period 30 June 2026 1,340 EUR FIXED 2.41% - 3.20% July 2026 - March 2027 1,527 7,870 CNY FIXED 2.80% -3.20% November 2029 - October 2030 1,166 382 EUR FLOATING Euribor + 0.65% - Estron + 1.22% June 2029 - March 2031 435 292 CHF FLOATING SARON + 1.45% March 2029 362 152 USD FIXED 4.00% March 2027 152 1,467 TL FIXED - July 2026 31 3,673 Original Amount Currency Interest Rate Type Effective Interest Rate Payment Period 31 December 2025 1,388 EUR Fixed 2.20% - 3.16% January 2026 - December 2026 1,632 7,979 CNY Fixed 2.80% - 3.20% November 2029 - October 2030 1,148 103 USD Fixed 4.40% March 2026 103 30 EUR Floating Euribor + 0.65% March 2031 35 2,918 As at 30 June 2026, in respect of b orrowings amounting to USD 30,357,423 under the terms of the loan agreement ent ered into b etween a bank and THY , the Group is required to compl y with the following financial covenants: a. Net Worth will not at any time less than 5,435,000,000 USD. b. The ratio of EBITDA to Net Interest Expense for any relevant period will not be less than 6. Repricing periods for bank borrowings with floating interest rates vary between 1 and 6 months. The Group evaluates the above mentioned conditions on an annual basis. As at 30 June 2026, in respect of borrowings amounting to USD 435,695,113 under the terms of the loan agreement e ntered into between a ba nk and THY , the Group is requi red to comply with the fol lowing financial covenants: a. Net Worth will not at any time less than 4,500,000,000 EUR. b. The ratio of EBITDA to Net Interest Expense for any relevant period will not be less than 4. As at 30 June 2026, in respect of b orrowings amounting to USD 749,978,083 under the terms of the loan agreement ent ered into betwee n a ba nk and THY , the Group is required to co mply with the f ollowing financial covenants: a. Net Worth will not at any time less than 4,500,000,000 USD. b. The ratio of EBITDA to Net Interest Expense for any relevant period will not be less than 4. As of 30 June 2026, there have been no changes in the covenant t erms compared to those in effect at the year-end, 31 December 2025.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 26 7. BORROWINGS (cont’d) Reconciliation of bank borrowings and lease liabilities arising from financing activities: 1 January 2026 Payment Interest Non-cash Changes (*) Additions 30 June 2026 Bank Borrowings 2,918 (2,413) (45) (58) 3,271 3,673 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 2026 Payment Interest Non-cash Changes (*) Modifications New Leases 30 June 2026 Aircraft 13,970 (1,104) (125) (60) 63 2,259 15,003 Property 910 (51) - (1) 46 8 912 Other 6 (2) - 1 1 - 6 14,886 (1,157) (125) (60) 110 2,267 15,921 1 January 2025 Payment Interest Non-cash Changes (*) Modifications New Leases 30 June 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 * This amount consists of accrued interest on financial liabilities and foreign exchange differences resulting from the remeasurement of foreign currency denominated borrowings at the reporting date.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 27 8. RELATED PARTIES Short-term trade receivables from related parties are as follows: 30 June 2026 31 December 2025 TGS 17 19 SunExpress 8 13 TEC 2 1 Turkish DO&CO 1 - Türk Telekom - 3 28 36 Other long-term receivables from related parties are as follows: 30 June 2026 31 December 2025 Air Albania 56 53 Short-term trade payables to related parties are as follows: 30 June 2026 31 December 2025 TFS Akaryakıt Hizmetleri 191 116 TGS 79 77 TEC 57 42 Turkish DO&CO 56 51 THY Opet 29 14 Turkcell 2 2 SunExpress 2 2 Goodrich 1 3 Türk Telekom - 2 417 309 Other short-term payables to related parties are as follows: 30 June 2026 31 December 2025 Türkiye Sigorta 24 30 Air Albania 1 1 25 31
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 28 8. RELATED PARTIES (cont’d) Transactions with related parties for the year ended 30 June 2026, and 2025 are as follows: a) Sales to related parties: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 TGS 53 26 42 21 SunExpress 34 16 28 11 Türk Telekom 4 2 4 2 Türkiye Sigorta 4 2 4 - TEC 2 1 1 - PTT 1 1 1 - Goodrich 1 1 1 1 Air Albania - - 1 1 99 49 82 36 b) Purchases from related parties: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 TFS Akaryakıt Hizmetleri 1,928 1,273 1,198 620 TGS 467 242 369 192 Turkish DO&CO 352 183 300 161 THY Opet 238 149 151 77 TEC 25 12 225 84 Goodrich 14 7 10 5 Turkcell 7 4 6 3 Türk Telekom 5 2 11 6 Türkiye Sigorta 1 1 4 1 SunExpress - - 25 - Ziraat Bankası - - 1 - Halkbank - - 1 - 3,037 1,873 2,301 1,149 Details of the financial assets and liabilities for related parties as of 30 June 2026, and 31 De cember 2025 are as follows: 30 June 2026 31 December 2025 Debt Securities (*) 1,803 3,032 Banks - Time deposits (**) 232 127 Banks - Demand deposits 41 124 Investment Fund 83 83 Bank borrowings (31) - (*) The amount mainly consists of debt securities issued by Vakıfbank. Additionally eurobonds with a market value of USD 110 have been collateralized for a 3-year term financing, with all rights and rewards retained by the Group. (**) The amount mainly consists of time deposits held at Ziraat Bank.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 29 8. RELATED PARTIES (cont’d) Details of the time deposits at related parties as of 30 June 2026, and 31 December 2025 are as follows: Amount Currency Effective Interest Rate Maturity 30 June 2026 10,190 TL 35.27% - 35.68% August 2026 232 Amount Currency Effective Interest Rate Maturity 31 December 2025 2,836 TL 32.79% - 33.25% February 2026 67 50 EUR 2.89% February 2026 60 127 As of 30 June 2026, the amount of letters of guarantee given through related financial institutions is USD 140. (31 December 2025: USD 138). Details of the debt securities at related parties as of 30 June 2026, and 31 December 2025 are as follows: Amount Currency Effective Interest Rate Maturity 30 June 2026 1,232 USD 5.50% -10.12% August 2026 - October 2034 1,232 450 EUR 4.25% -4.75% July 2026 - April 2027 513 2,650 TL 41.20% -41.25% July 2026 - August 2026 58 1,803 Amount Currency Effective Interest Rate Maturity 31 December 2025 1,850 EUR 4.25% - 5.88% January 2026 - August 2031 2,171 828 USD 5.25% - 10.12% January 2026 - May 2047 828 1,400 TL 30.00% - 41.50% February 2026 - July 2030 33 3,032
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 30 8. RELATED PARTIES (cont’d) Interest income from related parties: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Vakıfbank 60 53 197 43 Ziraat Bankası 35 33 129 38 Halkbank 8 8 42 6 Ziraat Katılım - - 25 6 103 94 393 93 Interest income from debt instruments of related parties: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Vakıfbank 49 24 35 19 Ziraat Bankası 12 6 4 2 Halk Yatırım 9 5 - - Halkbank 4 2 1 - Türkiye Varlık Fonu 1 1 - - 75 38 40 21 Fair value gains from debt instruments from related parties: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Ziraat Bankası 8 9 - - Vakıfbank 5 18 - 1 Halkbank 1 9 - 2 Türkiye Varlık Fonu - 2 - - 14 38 - 3
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 31 8. RELATED PARTIES (cont’d) Debt securities from related parties: 30 June 2026 31 December 2025 Vakıfbank 1,349 2,683 Ziraat Bankası 281 198 Halkbank 99 101 Halk Yatırım 57 33 Türkiye Varlık Fonu 17 17 Turkcell - - 1,803 3,032 Transactions between the Group and TFS Akaryakıt and THY Opet are related to the supply of aircraft fuel; transactions between the Group and Turki sh DO& CO a re related to catering services; transactions between the Gro up and SunExpress are related to aircraft tra nsportation, se at sales opera tions and maintenance serv ices; transactions betwee n the Group an d TG S are related to ground , support and technology services; transactions between the Group and TEC are related to engine maintenance services; transactions be tween the Group a nd PTT are rel ated t o cargo transportation; tr ansactions b etween the Group an d Halkbank, Ziraat Ba nkası, 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 maintena nce services; transactions between the Group and Türkiye Sigorta are related to insurance services; transactions between the Group and We World Express are related to c argo t ransportation 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 Manager s and D eputy General Managers of the Group is USD 10 for the period between 1 January - 30 June 2026 (1 January- 30 June 2025: USD 9).
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 32 9. OTHER RECEIVABLES Other short-term receivables from third parties as of 30 June 2026, and 31 December 2025 are as follows: 30 June 2026 31 December 2025 Predelivery payments made for aircraft 370 341 Receivables from technical purchases 163 196 Bank deposits with transfer limitations (*) 157 209 Tax refund 49 46 Receivables from pilots for flight training 40 41 Others 53 86 832 919 (*) As of 30 June 2 026, the amount co nsists of b ank deposits in Bangladesh, Algeria, Nigeria, Senegal, Niger, Mali, Burki na Faso, Moza mbique, Angola, Cameroon, Chad, Gabon, Benin, Cote D’Ivoire, Lebanon, Congo, Ghana, Pakistan, Malawi, Libya, Syria and Iran. (As of 31 December 2025 , the amount consists of bank deposits in Ethiopia, Bangladesh, Algeria, Nigeria, Senegal, Niger, Mali, Burki na Faso, Mozambique, Angola, Cameroon, Chad, Gabon, Benin, Cote D’Ivoire, Lebanon, Congo, Ghana, Pakistan, Malawi, Equatorial Guinea, Venezuela, Libya, Syria and Iran). Other long-term receivables from third parties as of 30 June 2026, and 31 December 2025 are as follows: 30 June 2026 31 December 2025 Predelivery payments made for aircraft 919 748 Investment incentives 543 535 Receivables from pilots for flight training 255 239 Interest and commodity swap agreement deposits 104 47 Deposits and guarantees given 83 61 Other receivables (**) 342 345 2,246 1,975 (**) The Company's offer to acquire minority shares in Air Europa Holding S.L.U. has been accept ed, the relevant agreements have been signed, and the process of obtaining regulatory approvals has commenced. The final shareholding ratio resulting from the 300 million EUR (34 2 USD) convertible debt & equity share will be determined based on the conditions prevailing on the date the necessary approvals are obtained. The movements in investment incentives for the year ended 30 June 2026, and 2025 are as follows: 1 January - 1 January - 30 June 2026 30 June 2025 Investment incentives at the beginning of the period 535 420 Recognised / added during the period 145 124 Foreign currency translation differences (48) (51) Utilised during the period (89) (56) Investment incentives at the end of the period 543 437
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 33 10. DEFERRED REVENUE Deferred revenue as of 30 June 2026, and 31 December 2025 are as follows: Deferred revenue is as follows: 30 June 2026 31 December 2025 Passenger flight liabilites 4,232 3,094 Other short-term deferred revenue 584 430 4,816 3,524 Passenger flight liability is as follows: 30 June 2026 31 December 2025 Flight liability for tickets sold 3,923 2,792 Frequent flyer program liability 309 302 4,232 3,094 Other short-term deferred revenue is as follows: 30 June 2026 31 December 2025 Advances received 414 250 Unused manufacturers' credits 81 123 Deferred other contract income 11 11 Other 78 46 584 430 Long-term deferred revenue is as follows: 30 June 2026 31 December 2025 Deferred other contract income 51 54 Other 13 22 64 76
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 34 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 2026 1,673 923 427 11,210 1,176 954 322 832 17,517 Additions 7 22 8 188 40 233 4 399 901 Transfer (*) 6 13 2 26 5 - 2 (64) (10) Transfers between the account - - 3 468 44 - - 60 575 Disposals - (4) (6) (171) (3) (141) - (5) (330) Closing balance at 30 June 2026 1,686 954 434 11,721 1,262 1,046 328 1,222 18,653 Accumulated Depreciation Opening balance at 1 January 2026 605 497 297 6,470 545 474 166 - 9,054 Depreciation charge 40 23 24 340 46 39 11 - 523 Transfers between the account - - - 212 20 - - - 232 Disposals - (4) (6) (161) (3) (21) - - (195) Closing balance at 30 June 2026 645 516 315 6,861 608 492 177 - 9,614 Net book value at 30 June 2026 1,041 438 119 4,860 654 554 151 1,222 9,039 Net book value at 31 December 2025 1,068 426 130 4,740 631 480 156 832 8,463 (*) The amount of USD 10 was transferred to the right of use asset 7 and intangible asset 3 from construction in progress. USD 1,261 of depreciation and amortization expenses recognized in cost of sales (30 June 2025: USD 1,104), USD 50 of general administrative expenses (30 June 2025: USD 39) and USD 7 of selling and marketing expenses (30 June 2025: USD 4) in total of USD 1,318 as of 30 June 2026 (30 June 2025: USD 1,147). The Group's construction in progress balances mainly consists of İstanbul Airport buildings, aircraft modifications, engine maintenance, backu p engines and simulators. There is no mortgage on property, plant and equipment as of 30 June 2026 (30 June 2025: None).
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 35 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 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 accounts - - - 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 accounts - - - 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
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 36 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 2026 25,350 397 982 10 26,739 Additions (**) 2,177 19 13 1 2,210 Transfer - 7 - - 7 Disposals (37) - (6) - (43) Modifications 63 - 46 - 109 Transfers between the accounts (***) (512) - - - (512) Closing balance at 30 June 2026 27,041 423 1,035 11 28,510 Aircraft Spare engines Real estate Vehicles Total Accumulated Depreciation Opening balance at 1 January 2026 6,709 100 139 5 6,953 Depreciation charge 736 12 27 2 777 Disposals (36) - - - (36) Modifications (194) - - - (194) Transfers between the account (***) (232) - - - (232) Closing balance at 30 June 2026 6,983 112 166 7 7,268 Net book value at 30 June 2026 20,058 311 869 4 21,242 Net book value at 31 December 2025 18,641 297 843 5 19,786 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 Transfers 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 (**) 29 USD of this amount consists of the maintenance of the aircraft that will become property at the end of the lease period. (***) Transfers mainly consist of aircraft that lease payments have been completed and ownership has been transferred to the Group.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 37 12. INTANGIBLE ASSETS Slot rights and acquired technical licenses (*) Rights Other intangible assets Total Cost Opening balance at 1 January 2026 44 377 69 490 Additions - 17 - 17 Disposals - (3) - (3) Transfers - 3 - 3 Transfers between the account - (27) (36) (63) Closing balance at 30 June 2026 44 367 33 444 Accumulated Amortization Opening balance at 1 January 2026 - 294 16 310 Amortization charge - 17 1 18 Closing balance at 30 June 2026 - 311 17 328 Net book value at 30 June 2026 44 56 16 116 Net book value at 31 December 2025 44 83 53 180 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 (*) The Group accounts slot rights as intangible assets with indefinite useful lives because these assets do not have any expiry date and are usable in the foreseeable future.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 38 13. LEASES Maturities of lease obligations are as follows: 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 Less than 1 year 2,709 2,428 (486) (421) 2,223 2,007 Between 1 – 5 years 7,745 7,442 (1,324) (1,136) 6,421 6,306 Over 5 years 8,364 7,558 (1,087) (985) 7,277 6,573 18,818 17,428 (2,897) (2,542) 15,921 14,886 Future Minimum Lease Payments Interest Present Values of Minimum Lease Payments 30 June 2026 31 December 2025 Fixed rate lease liabilities 9,489 8,351 Floating rate lease liabilities 6,432 6,535 15,921 14,886 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 2026 , the we ighted average interest rates on lease payables are 4.58% for US D (31 December 202 5: 4.56%), 2.75% for EU R (31 Decembe r 2025: 2.64%), 4.32% for CNY ( 31 December 2025: 4.32%), 1.86% for JPY (31 December 2025: 1.34%), 27.61% for TL (31 December 2025: 29.21%) and 0.93% for CHF (31 December 2025: 0.91%). 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 2026, and 31 December 2025 are as follows: Short-term provision for employee benefits is as follows: 30 June 2026 31 December 2025 Provisions for unused vacation 142 131 Changes in the provisions for the year ended 30 June 2026, and 2025 are set out below: 1 January - 1 January - 30 June 2026 30 June 2025 Provisions at the beginning of the period 131 101 Provisions for the current period 695 554 Foreign currency translation differences (12) (13) Provisions released (672) (516) Provisions at the end of the period 142 126
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 39 14. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d) Other short-term provision is as follows: 30 June 2026 31 December 2025 Provisions for legal claims 23 18 Changes in the provisions for legal claims for the year ended 30 June 2026, and 2025 are set out below: 1 January - 1 January - 30 June 2026 30 June 2025 Provisions at the beginning of the period 18 14 Provisions for the current period 6 4 Provisions released - (3) Foreign currency translation differences (1) (1) Provisions at the end of the period 23 14 The Gro up provides provisions for lawsuits initiated against it self due to its o perations. T he law suits initiated against the Group are usually reemployment lawsuits by former employees or related to damaged luggage or cargo. The estimates have been made on the basis of the advice from the legal advisors.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 40 15. COMMITMENTS a) Guarantees/Pledges/Mortgages (“GPM”) given by the Group: Amount of letters of guarantees given as of 30 June 2026 is USD 232 (31 December 2025: USD 219). As of 30 June 2026 , the let ters of g uarantee are given to variou s authori ties (i.e. vari ous ban ks and vendors.) Original currency amount USD equivalent Original currency amount USD equivalent A. Total amounts of GPM given on the behalf of its own legal entity - 232 - 219 -Collaterals TL 683 15 747 17 EUR 46 52 46 53 USD 143 143 128 128 Other - 22 - 21 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 - - - - 232 219 30 June 2026 31 December 2025 As of 30 June 2026 , the ratio of other GPMs (“D”) given by the Group to the Group's equity is 0% (31 December 2025: 0%). b) Aircraft purchase commitments: The Group has signed agreements for 465 aircraft that will be delivered between the years 2026 and 2036, (315 of aircraft are contractual and 150 of them are optional) with a list price value of USD 33,857 each. The Group has made a predelivery payment of USD 1,385 gross relevant to these purchases as of 30 June 2026 (31 December 2025: USD 1,165).
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 41 16. EMPLOYEE BENEFITS Provisions for retirement pay liability as of 30 June 2026 , and 31 D ecember 2025 are comprised of the following: 30 June 2026 31 December 2025 Provision for retirement pay liability 314 282 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 1,392 (full) (equivalent of TL 64,949 (full)) as of 30 June 2026. (31 December 2025: USD 1,256 (full) equivalent to TL 53,920 (full)). Retirement pa y liability is not subject to any fun ding legally. P rovisions for re tirement pay liability are calculated b y estimating the present value of probable liability that w ill arise due to the retirement o f employees. IAS 19 (“Employee Benefits”) stipulates the progress of the Group’s liabilities by use of actuarial valuation methods under defined benefit plans. Actuarial assumptions used in calculation of total liabilities are described as follows: The critical assumption is that the maximum liability amount increases in accordance with the inflation rate for every service year. Provisions in the accompanying consolidated financial statements as of 30 June 2026 are calculated by estimating the present value of liabilities due to the retirement of employees. Provisions in the relevant balance sheet dates are calculated with the assumptions of 24.61% annual inflation rate (31 December 2025: 24.61%) and 29.82% interest rate (31 December 2025 : 29.82%). Estimated amount of no n-paid retirement pay retained in the Group due to voluntary leaves is assumed as 2.19% (31 December 2025: 2.33%). Ceiling for retirement pay is revised semi-annually. Ceiling amount of USD 1,580 (full) (equivalent to TL 73,730 (full)) which has been in effect since 1 July 2026, 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 - 1 January - 30 June 2026 30 June 2025 Provision at the beginning of the period 282 247 Interest cost 41 32 Service cost for the period 18 17 Actuarial loss 15 5 Payments (9) (5) Foreign currency translation difference (33) (30) Provision at the end of the period 314 266
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 42 17. EXPENSES BY NATURE Expenses by nature for the year ended 30 June 2026, and 2025 are as follows: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Fuel 4,316 2,770 2,782 1,436 Personnel 3,274 1,616 2,676 1,331 Depreciation and amortisation 1,318 667 1,147 582 Ground services 897 452 780 401 Aircraft maintenance 803 415 630 317 Passenger services and catering 615 311 545 290 Airport 569 292 499 273 Air traffic control 517 272 446 245 Commissions and incentives 372 199 322 167 Advertisement and promotion 101 56 72 42 Reservation systems 99 43 119 55 Wet lease 81 34 128 50 IT and communication 71 27 54 19 Service 68 40 47 23 Rents 49 33 30 16 Transportation 46 24 40 20 Insurance 31 16 30 14 Taxes and duties 30 13 23 12 Call center 23 12 22 10 Systems use and associateship 19 10 17 10 Aircraft rent 19 6 14 8 Consultancy 15 8 14 7 Utility 12 5 13 6 Other 115 58 90 40 13,460 7,379 10,540 5,374
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 43 18. SHAREHOLDERS’ EQUITY The ownership structure of the Company’s share capital is as follows: (Millions of TL) Class % 30 June 2026 % 31 December 2025 Türkiye Wealth Fund A 49.12 678 49.12 678 Republic of Türkiye Treasury and Finance Ministry Privatization Administration C - - - - Treasury Shares (*) A 0.55 8 0.40 6 Other (publicly held) A 50.33 694 50.48 696 Paid-in capital (Turkish Lira) 1,380 1,380 Inflation adjustment on share capital (Turkish Lira) (**) 2,504 1,124 Share capital (Turkish Lira) 3,884 2,504 Share capital (USD Equivalent) 1,597 1,597 (*) 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 o f 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. Accordi ng to share b uy-back p rogram, company purchased 7,640,244 shares wi th the amount of USD 54 as of 30 June 2026. (**) Inflation adjustment on share capital represents inflation uplift of historical capital payment s based on inflatio n indices until 31 December 2004. The Company's issued share capital amounts to TL 1,380,000,000, all of which has been ful ly paid, and comprises 137,999,999,999 Class A shares with a nominal value of Kr 1 each and 1 Class C share with a nominal value of Kr 1. These shares are registered shares. The Class C share belongs to t he 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 shar e 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 As sociation 14: The f ollowing decisions of the Board of Directors are subject to t he positive vote of the class C Shareholder: a) Decisions that w ill negatively affect the G roup’s mission, Defined i n Article 3.1. of the Ar ticles 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 th e 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.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 44 18. SHAREHOLDERS’ EQUITY (cont’d) Restricted Profit Reserves Turkish Commercial Code (TCC) stipu lates 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 Company’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 Company 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 trans lation differences under equity arise from Group’s joint ventures, provisions fo r unused vacation, legal claims and retirement pay lia bility accounted un der 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 w ith their dividend payment polic ies settled and dividend payment deci sion taken in gene ral assembly in accordance with relevant l egislations. The com muniqué does not c onstitute a minimum dividend rate. C ompanies distribute dividend in accordanc e w ith their dividend policy or art icles of associations. In addition , d ividend c an 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 again st c ash flow risk arise from the acc ounting of the chan ges in th e fair values of effective d erivative financial instruments d esignated against fin ancial risks of future cash fl ows 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 2026, lease liabilities and investment borrowings in Japanese Yen, Swiss Franc, Chinese Yuan and Euro for investment financing are designated as cash flow h edge against exchange rate ri sk due to highl y 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 51% of borrowings. In this context, exchange differences arising from suc h these loans repayment are taken to equity and recognized in other comprehensive income.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 45 19. REVENUE Breakdown of gross profit is as follows: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Passenger revenue Scheduled 10,293 5,616 8,803 4,892 Unscheduled 94 59 64 46 Total passenger revenue 10,387 5,675 8,867 4,938 Cargo revenue Carried by cargo aircraft 1,240 688 777 395 Carried by passenger aircraft 1,014 579 787 407 Total cargo revenue 2,254 1,267 1,564 802 Total passenger and cargo revenue 12,641 6,942 10,431 5,740 Technical revenue 296 149 325 184 Other revenue 185 114 111 56 Net sales 13,122 7,205 10,867 5,980 Cost of sales (-) (12,170) (6,747) (9,393) (4,835) Gross profit 952 458 1,474 1,145 Breakdown of total passenger and cargo revenue by geographical locations is as follows: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 - Asia and Far East 4,078 2,232 2,806 1,475 - Europe 3,395 1,955 2,882 1,682 - Americas 2,435 1,377 2,139 1,172 - Africa 1,048 525 833 436 - Middle East 701 279 889 453 International flights 11,657 6,368 9,549 5,218 Domestic flights 984 574 882 522 Total passenger and cargo revenue 12,641 6,942 10,431 5,740
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 46 20. COST OF SALES Breakdown of the cost of sales is as follows: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Fuel 4,316 2,770 2,782 1,436 Personnel 2,852 1,418 2,290 1,169 Depreciation and amortisation 1,261 639 1,104 560 Ground services 897 452 780 401 Aircraft maintenance 803 415 630 317 Passenger services and catering 615 311 545 290 Airport 569 292 499 273 Air traffic control 517 272 446 245 Wet lease 81 34 128 50 Transportation 46 24 40 20 Service 44 28 26 13 Insurance 28 14 25 12 Rents 24 17 16 8 Aircraft rent 19 6 14 8 IT and communication 16 10 12 6 Taxes and duties 13 7 10 5 Utility 8 3 9 4 Systems use and associateship 5 2 4 2 Other 56 33 33 16 12,170 6,747 9,393 4,835 21. GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES Breakdown of general administrative expenses is as follows: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Personnel 158 65 145 43 Depreciation and amortisation 50 25 39 20 IT and communication 46 12 32 6 Systems use and associateship 10 6 8 5 Rents 7 5 4 2 Taxes and duties 6 3 6 3 Consultancy 5 3 5 3 Utility 4 2 4 2 Insurance 3 2 5 2 Service 3 2 7 3 Other 9 3 8 3 301 128 263 92
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 47 21. GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES (cont’d) Breakdown of selling and marketing expenses is as follows: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Commissions and incentives 372 199 322 167 Personnel 264 133 241 119 Advertisement and promotion 101 56 72 42 Reservation systems 99 43 119 55 Call center 23 12 22 10 Service 21 10 14 7 Rents 18 11 10 6 Taxes and duties 11 3 7 4 Consultancy 10 5 9 4 IT and communication 9 5 10 7 Depreciation and amortisation 7 3 4 2 Systems use and associateship 4 2 5 3 Other 50 22 49 21 989 504 884 447 22. OTHER OPERATING INCOME / EXPENSES Breakdown of other operating income and expenses are as follows: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Manufacturers' credits 143 65 189 53 Foreign exchange gains from operational activities, gross 63 (14) 52 19 Insurance, indemnities, penalties 27 6 14 4 Non- interest income from banks 22 11 23 11 Delay interest income 9 2 2 1 Rediscount interest income 7 - 21 3 Rent income 5 - 17 7 Provisions released 2 - 3 1 Reversal of ECL provision - - 1 (1) Other 37 33 15 11 315 103 337 109 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Provisions 37 1 7 6 Foreign exchange losses from operational activities, gross 36 (23) 9 (1) Indemnity and penalty expenses 6 3 8 2 Rediscount interest expenses 1 1 6 2 Other 18 11 4 - 98 (7) 34 9
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 48 23. INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES Breakdown of income from investment activities is as follows: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Interest income from financial investment 745 397 425 180 Income from investment incentives 145 86 125 68 Gain on sale of financial investments 112 39 55 24 Gain on sale of fixed assets 29 12 3 1 1,031 534 608 273 Breakdown of expense from investment activities is as follows: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Losses on the remeasurement of financial investments 59 11 53 16 Loss on sale of fixed assets 37 2 - - 96 13 53 16 24. FINANCIAL INCOME/ EXPENSES Breakdown of financial income is as follows: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Interest income 190 102 243 117 Foreign exchange gains from financial activities, gross 102 22 289 190 Fair value gains on derivative financial instruments, net 34 34 - - Other - - 11 3 326 158 543 310 Breakdown of financial expenses is as follows: 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Foreign exchange losses on financial activities, gross (*) 424 264 439 304 Interest expense from leasing liabilities 243 125 186 95 Interest expenses on employee benefits 41 22 32 16 Interest expense from financial activities 39 24 33 17 Rediscount interest expense from repayments of aircraft, net 28 8 2 2 Aircraft financing expenses 10 3 5 2 Fair value losses on derivative financial instruments, net - (21) 254 56 Other 6 4 3 1 791 429 954 493 (*) As of 30 June 2026, gross foreign exchange los ses included in financial expenses mainly consist of foreign exchange losses arising from deposits, borrowings and lease obligations.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 49 25. TAX ASSETS AND LIABILITIES Tax assets and tax income are as follows: 30 June 2026 31 December 2025 Provisions for corporate tax 125 176 Prepaid taxes and funds (254) (166) Current income tax (assets) / liabilities (129) 10 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Deferred tax income 215 89 24 18 Current period tax (expense) (102) (100) (126) (122) Tax income / (expense) 113 (11) (102) (104) Tax effect related to other comprehensive income is as follows: Amount before tax Tax (expense) / income Amount after tax Amount before tax Tax (expense) / income Amount after tax Change in cash flow hedge reserve 270 (67) 203 (991) 223 (768) Changes in foreign currency translation difference 1 - 1 26 - 26 Losses on Remeasuring FVOCI (4) 1 (3) 1 - 1 Change in actuarial losses from retirement pay obligation (15) 3 (12) (5) 1 (4) Other comprehensive income 252 (63) 189 (969) 224 (745) 1 January - 30 June 2026 1 January - 30 June 2025 There i s no t axation effect for the changes in foreign cu rrency translation d ifference that is included in other comprehensive income.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 50 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 in stitutions 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. Turkish tax legislation doe s not per mit a parent c ompany and i ts s ubsidiaries to file a consolidated ta x return. Th erefore, tax liabilities, as reflected in the se consolidated financial stateme nts, have bee n calculated on a separate-entity basis. Deferred Tax The Group reco gnizes deferr ed tax asse ts a nd l iabilities ba sed upon temporary diff erences between i ts financial s tatements as reported for I FRS purposes a nd its st atutory tax f inancial statem ents. 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 ag ainst subsidiaries with deferred tax liabili ties position an d they are disclosed separately.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 51 25. TAX ASSETS AND LIABILITIES (cont’d) Deferred Tax (cont’d) Breakdown of the deferred tax assets and (liabilities) is as follows: 30 June 2026 31 December 2025 Deferred tax asset 560 413 Deferred tax liability (25) (73) Deferred tax asset 535 340 30 June 2026 31 December 2025 Expense and income accruals 284 183 Fixed assets 252 161 Provisions for employee benefits 79 70 Deferred revenue and prepaid expenses 49 66 Miles accruals 40 38 Provisions for unused vacation 35 32 Lease liabilities (net) (*) 29 29 Other incentives 27 22 Carry forward tax losses 7 2 Change in fair value of derivative instruments (35) (25) Adjustments for passenger flight liabilities (165) (179) Other (67) (59) 0Deferred tax asset 535 340 (*) The rela ted amount includes t he e ffects of lease l iabilities and right of use asset s on deferred tax assets an d liabilities. Pursuant to Law No. 7571 published in t he Official Gazette dated 25 December 2025, ame ndments were made to the Tax Procedure Law ("TPL"). In accordance with these amendments, statutory tax fi nancial statements will not be subject to inflation adjustment for the 2026 fiscal year, including interim tax periods, as well as for the 2026 and 2027 fiscal years. Furthermore, during these periods in wh ich inflation accounting is not applied, it will b e permissible to revalue depreciable assets in accordance with Article 298, paragraph (Ç) of the TPL. Accordingly, the Group has ele cted to apply the r evaluation practice in the current period, and property , plant and equipment have been carried at their r evalued amounts. The deferred tax amount under Article 298 (Ç) for the fiscal year 2026 has been calculated based on these revalued amounts.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 52 25. TAX ASSETS AND LIABILITIES (cont’d) Deferred Tax (cont’d) The changes of deferred tax asset and (liability) for the year ended 1 January – 30 June 2026, and 2025 are as follows: 1 January - 1 January - 30 June 2026 30 June 2025 Opening balance at 1 January 340 337 Deferred tax income 215 24 Foreign currency translation difference 43 - Tax income of actuarial losses on retirement pay obligation 3 1 Tax income from FVOCI 2 - Tax income from hedging reserves (68) 223 Deferred tax asset at the end of the period 535 585 Reconciliation with current tax expense for the period 1 January – 30 June 2026, and 2025 are as follows: Reconciliation of effective tax charge 1 January - 30 June 2026 1 April - 30 June 2026 1 January - 30 June 2025 1 April - 30 June 2025 Profit from operations before tax 310 208 749 795 Tax calculated with the effective tax rate (78) (52) (187) (199) Taxation effects on: - revaluation 681 926 - - - income from investment certificates 36 21 28 14 - unused tax incentive 12 3 9 9 - exception 4 1 17 2 - effect of the change in the deferred tax rate - - (23) 29 - non deductible expenses (9) (2) (7) - - investments accounted by using the equity method (13) 3 (6) 5 - foreign currency translation difference (520) (911) 67 36 Tax (expense) in statement of profit 113 (11) (102) (104) 26. EARNINGS PER SHARE Earnings per sh are disclosed in the consolidated profit or loss and other comprehensive in come is determined by dividing the ne t income by the weighted avera ge n umber of s hares that h ave 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 e xisting sha reholders from r etained ear nings. F or the purp ose of earning s p er share computations, such bonus shares are regarded as issued shares. Accordingly, the weighted average number of shares ou tstanding during the years has been adju sted in respect o f bonus sha res i ssued w ithout a corresponding change in resources, by giving them retroactive effect for the year in which they were issued and for each earlier year.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 53 26. EARNINGS PER SHARE (cont’d) Number of total shares and calculation of profits per share at 1 January – 30 June 2026, and 2025: 1 January - 1 January - 30 June 2026 30 June 2025 Number of shares outstanding at 1 January (in full) 137,993,344,756 137,994,458,955 Number of shares outstanding at 30 June (in full) 137,992,359,756 137,993,723,756 Weighted average number of shares outstanding during the period (in full) 137,992,666,441 137,994,151,112 Net profit / (loss) for the period 423 647 Basic earnings per share (Full US Cents) (*) 0.31 0.47 Diluted earnings per share (Full US Cents) (*) 0.31 0.47 (*) 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 2026, and 31 December 2025 are as follows: Derivative financial assets 30 June 2026 31 December 2025 Derivative instruments not subject to hedge accounting 317 243 Derivative instruments for fuel prices cash flow hedge 43 - Derivative instruments for cross currency rate cash flow hedge 3 3 Derivative instruments for interest rate cash flow hedge - 1 363 247 Derivative financial liabilities 30 June 2026 31 December 2025 Derivative instruments not subject to hedge accounting 189 118 Derivative instruments for fuel prices cash flow hedge 34 30 223 148
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 54 28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS Foreign currency risk management Transactions i n fo reign curr encies expose the Grou p to foreign currency risk. The foreign currency denominated assets and liabilities as monetary and non-monetary items are below: USD EQUIVALENT TL EUR JPY CHF OTHER (**) 1.Trade Receivables 1,035 217 184 16 15 603 2a.Monetary Financial Assets 6,782 5,292 1,380 11 6 93 2b.Non Monetary Financial Assets - - - - - - 3.Other 837 486 142 3 8 198 4.Current Assets (1+2+3) 8,654 5,995 1,706 30 29 894 5.Trade Receivables 9 - 9 - - - 6a.Monetary Financial Assets 875 742 131 - - 2 6b.Non Monetary Financial Assets - - - - - - 7.Other 1,158 557 601 - - - 8.Non Current Assets (5+6+7) 2,042 1,299 741 - - 2 9.Total Assets (4+8) 10,696 7,294 2,447 30 29 896 10.Trade Payables 1,194 794 328 7 5 60 11.Financial Liabilities (*) 3,406 222 2,750 229 100 105 12a.Other Liabilities, Monetary 1,002 770 131 6 4 91 12b.Other Liabilities, Non Monetary - - - - - - 13.Current Liabilities (10+11+12) 5,602 1,786 3,209 242 109 256 14.Trade Payables - - - - - - 15.Financial Liabilities (*) 11,182 103 5,704 2,838 1,073 1,464 16a.Other Liabilities, Monetary 303 303 - - - - 16b.Other Liabilities, Non Monetary - - - - - - 17.Non Current Liabilities (14+15+16) 11,485 406 5,704 2,838 1,073 1,464 18.Total Liabilities (13+17) 17,087 2,192 8,913 3,080 1,182 1,720 19.Net asset / liability position of off- balance sheet derivatives (19a-19b) 667 743 (76) - - - 19a.Off-balance sheet foreign currency derivative assets 8,995 6,073 2,922 - - - 19b.Off-balance sheet foreign currency derivative liabilities 8,328 5,330 2,998 - - - 20.Net foreign currency asset / (liability) position (9-18+19) (5,724) 5,845 (6,542) (3,050) (1,153) (824) 21.Net foreign currency asset / liability position of monetary items (IFRS 7.B23) (=1+2a+5+6a-10-11-12a -14-15-16a) (8,386) 4,059 (7,209) (3,053) (1,161) (1,022) 22.Fair value of foreign currency hedged financial assets - - - - - - 23.Hedged foreign currency assets - - - - - - 24.Hedged foreign currency liabilities 10,773 - 6,459 1,569 1,175 1,570 30 June 2026 (*) Net foreign exchange position of the Group is mainly due to long term foreign currency borrowings denominated in Euro, Japa nese Yen and Swiss Franc to fund i ts air craft investments. The Group uses these long-term foreign currency borrowings to manage t he risk of ex change dif ferences with hig hly probable future foreign currency revenues. The USD equivalent of these borrowings amounts to USD 10,773 as of 30 June 2026. (**) The amount of Chinese yuan in total assets is USD 168, in total liabilities is USD 1,577, in the hedged foreign currency liabilities is USD 1,570.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 55 28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont’d) Foreign currency risk management (cont’d) USD EQUIVALENT TL EUR JPY CHF OTHER (**) 1.Trade Receivables 772 207 101 14 9 441 2a.Monetary Financial Assets 5,830 3,163 2,494 5 93 75 2b.Non Monetary Financial Assets - - - - - - 3.Other 728 322 173 2 6 225 4.Current Assets (1+2+3) 7,330 3,692 2,768 21 108 741 5.Trade Receivables 18 - 18 - - - 6a.Monetary Financial Assets 1,230 984 246 - - - 6b.Non Monetary Financial Assets - - - - - - 7.Other 1,133 547 586 - - - 8.Non Current Assets (5+6+7) 2,381 1,531 850 - - - 9.Total Assets (4+8) 9,711 5,223 3,618 21 108 741 10.Trade Payables 1,174 756 319 8 3 88 11.Financial Liabilities (*) 3,247 34 2,697 348 93 75 12a.Other Liabilities, Monetary 783 593 103 5 4 78 12b.Other Liabilities, Non Monetary - - - - - - 13.Current Liabilities (10+11+12) 5,204 1,383 3,119 361 100 241 14.Trade Payables - - - - - - 15.Financial Liabilities (*) 10,676 74 5,891 2,527 702 1,482 16a.Other Liabilities, Monetary 282 282 - - - - 16b.Other Liabilities, Non Monetary - - - - - - 17.Non Current Liabilities (14+15+16) 10,958 356 5,891 2,527 702 1,482 18.Total Liabilities (13+17) 16,162 1,739 9,010 2,888 802 1,723 19.Net asset / liability position of off- balance sheet derivatives (19a-19b) 50 1,995 (1,928) - (3) (14) 19a.Off-balance sheet foreign currency derivative assets 7,543 5,213 2,328 - - 2 19b.Off-balance sheet foreign currency derivative liabilities 7,493 3,218 4,256 - 3 16 20.Net foreign currency asset/(liability) position (9-18+19) (6,401) 5,479 (7,320) (2,867) (697) (996) 21.Net foreign currency asset / liability position of monetary items (IFRS 7.B23) (=1+2a+5+6a-10-11-12a-14-15-16a) (8,312) 2,615 (6,151) (2,869) (700) (1,207) 22.Fair value of foreign currency hedged financial assets - - - - - - 23.Hedged foreign currency assets - - - - - - 24.Hedged foreign currency liabilities 10,292 - 6,801 1,144 795 1,552 31 December 2025 (*) Net foreign exchange position of the Group is mainly due to long term foreign currency borrowings denominated in Euro, Japa nese Yen and Swiss Franc to fund i ts air craft investments. The Group uses these long-term for eign currency borrowings to manage t he risk of ex change dif ferences with hig hly probable future foreign currency revenues. The USD equivalent of these borrowings amounts to USD 10,292 as of 31 December 2025. (**) The amount of Chinese yuan in t otal assets is USD 79, in total liabilities is USD 1,563, in the hedged foreign currency liabilities is USD 1,552.
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 56 28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont’d) Foreign currency risk management (cont’d) Foreign currency sensitivity The Group is exposed to foreign exchange risk primarily from TL, EURO, JPY and CHF. The following table details the Gr oup’s sensitivity to a 10% increase and decrease in TL, EURO, JPY and C HF against USD. 10% is the sensiti vity 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 f oreign currency denominated moneta ry 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 ca lculated forei gn exchange ga ins/losses are prese nted as hedged porti on in the foreign exc hange sens itivity table. Furthermore, th e hedged portion of fo reign 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. 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 585 (585) - - 2- Part hedged from TL risk (-) - - - - 3- TL net effect (1+2) 585 (585) - - 4- Euro net asset / liability (654) 654 (646) 646 5- Part hedged from Euro risk (-) 646 (646) - - 6- Euro net effect (4+5) (8) 8 (646) 646 7- JPY net asset / liability (305) 305 (157) 157 8- Part hedged from JPY risk (-) 157 (157) - - 9- JPY net effect (7+8) (148) 148 (157) 157 10- CHF net asset / liability (115) 115 (118) 118 11- Part hedged from CHF risk (-) 118 (118) - - 12- CHF net effect (10+11) 3 (3) (118) 118 13- Other foreign currency net asset / liability (82) 82 (157) 157 14- Part hedged other foreign currency risk (-) 157 (157) - - 15- Other foreign currency net effect (13+14) 75 (75) (157) 157 TOTAL (3 + 6 + 9 + 12 + 15) 507 (507) (1,078) 1,078 30 June 2026 Profit / (Loss) Before Tax Equity
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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 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 57 28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont’d) Foreign currency risk management (cont’d) Foreign currency sensitivity (cont’d) 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 548 (548) - - 2- Part hedged from TL risk (-) - - - - 3- TL net effect (1+2) 548 (548) - - 4- Euro net asset / liability (732) 732 (680) 680 5- Part hedged from Euro risk (-) 680 (680) - - 6- Euro net effect (4+5) (52) 52 (680) 680 7- JPY net asset / liability (287) 287 (114) 114 8- Part hedged from JPY risk (-) 114 (114) - - 9- JPY net effect (7+8) (173) 173 (114) 114 10- CHF net asset / liability (70) 70 (80) 80 11- Part hedged from CHF risk (-) 80 (80) - - 12- CHF net effect (10+11) 10 (10) (80) 80 13- Other foreign currency net asset / liability (100) 100 (155) 155 14- Part hedged other foreign currency risk (-) 155 (155) - - 15- Other foreign currency net effect (13+14) 55 (55) (155) 155 TOTAL (3 + 6 + 9 + 12 + 15) 388 (388) (1,029) 1,029 Profit / (Loss) Before Tax Equity 31 December 2025 29. GOVERNMENT GRANTS AND INCENTIVES Incentive certificates dated, 28 December 2010, 18 December 2014, 1 March 2018, 9 August 2018, 25 February 2022, 12 December 2023, 26 December 2024 and 28 February 2025 were obtained from Ministry of Industry and Technology for i nvestment of ai rcrafts. These c ertificates provide the G roup with certain a dvantages on reduction of corporate tax, customs duty exemption and support for insurance premium of employers. As a result of the revaluation process in tax based financial statements, the tax of $1,691 that may arise in future periods upon the disposal of the revalued fixed as sets can be offset against governm ent incentive receivables that have not yet been recognized in the financial statements and remain unused. As of 30 June 2026, The Group has discounts and exemptions amounting to USD 5,571 that it can benefit from in the foreseeable future ( 30 June 2025: USD 4,344). As o f 1 January - 30 June 2026 , 89 USD of this tax advantage has been used (30 June 2025: USD 56). • 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 - 10 years in this context. • 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 ope rational income/expenses that are li kely to occur, no change is expected in the 1-10 years period of use. 30. EVENTS AFTER THE BALANCE SHEET DATE None.