Interim report
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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Financial Statements As at and For The Nine-Month Period Ended 30 September 2026
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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Financial Position as at 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 1 Not Reviewed Audited ASSETS Notes 30 September 2026 31 December 2025 Non-Current Assets Financial Investments 6 3,816 2,683 Other Receivables -Related Parties 8 56 53 -Third Parties 9 2,083 1,975 Investments Accounted for Using Equity Method 3 876 763 Investment Property 150 43 Property and Equipment 11 9,372 8,463 Right of Use Assets 11 21,776 19,786 Intangible Assets - Other Intangible Assets 12 115 180 - Goodwill - 27 Prepaid Expenses 2,451 2,031 Deferred Tax Assets 25 674 413 TOTAL NON-CURRENT ASSETS 41,369 36,417 Current Assets Cash and Cash Equivalents 5 1,743 2,008 Financial Investments 6 4,686 4,265 Trade Receivables -Related Parties 8 33 36 -Third Parties 1,502 1,033 Other Receivables -Third Parties 9 1,013 919 Derivative Financial Instruments 27 295 247 Inventories 1,134 968 Prepaid Expenses 694 421 Current Income Tax Assets 25 33 - Other Current Assets 295 289 TOTAL CURRENT ASSETS 11,428 10,186 TOTAL ASSETS 52,797 46,603 The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Financial Position as at 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 2 Not Reviewed Audited LIABILITIES AND EQUITY Notes 30 September 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 (293) (287) Items That May Be Reclassified to Profit or (Loss) -Foreign Currency Translation Differences 18 (144) (164) -Fair Value Gains / (Losses) on Hedging Instruments Entered into for Cash Flow Hedges 18 147 (138) -Gains on Remeasuring FVOCI 18 3 71 Restricted Profit Reserves 18 91 84 Previous Years Profit 20,188 17,285 Net Profit for the Period 1,716 2,910 Equity of the Parent 23,252 21,312 Non-Controlling Interests (1) 2 TOTAL EQUITY 23,251 21,314 Non-Current Liabilities Long-Term Borrowings 7 2,515 1,141 Long-Term Lease Liabilities 7 and 13 14,082 12,879 Other Payables -Third Parties 91 29 Deferred Revenue 10 61 76 Long-Term Provisions -Provisions for Employee Termination Benefits 16 306 282 -Other Provisions 256 195 Deferred Tax Liabilities 25 51 73 Other Non-Current Liabilities 385 315 TOTAL NON-CURRENT LIABILITIES 17,747 14,990 Current Liabilities Short-Term Borrowings 7 1,549 1,632 Short-Term Portion of Long-Term Borrowings 7 259 145 Short-Term Portion of Lease Liabilities 7 and 13 2,237 2,007 Trade Payables -Related Parties 8 447 309 -Third Parties 1,701 1,523 Payables Related to Employee Benefits 561 468 Other Payables -Related Parties 8 23 31 -Third Parties 328 242 Derivative Financial Instruments 27 87 148 Deferred Revenue 10 4,261 3,524 Current Income Tax Provision 25 - 10 Short-Term Provisions -Provisions for Employee Benefits 14 154 131 -Other Provisions 14 24 18 Other Current Liabilities 168 111 TOTAL CURRENT LIABILITIES 11,799 10,299 TOTAL LIABILITIES AND EQUITY 52,797 46,603 The accompanying notes are an integral part of these condensed consolidated interim 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 3 Not Reviewed Not Reviewed Not Reviewed Not Reviewed PROFIT OR LOSS Notes 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Revenue 19 21,420 8,298 17,820 6,953 Cost of Sales (-) 20 (19,044) (6,874) (14,809) (5,416) GROSS PROFIT 2,376 1,424 3,011 1,537 General Administrative Expenses (-) 21 (475) (174) (403) (140) Selling and Marketing Expenses (-) 21 (1,495) (506) (1,355) (471) Other Operating Income 22 524 209 484 147 Other Operating Expenses (-) 22 (122) (24) (48) (14) OPERATING PROFIT BEFORE INVESTMENT ACTIVITIES 808 929 1,689 1,059 Income from Investment Activities 23 1,661 630 924 316 Expenses for Investment Activities (-) 23 (167) (71) (65) (12) Share of Investments' Profit Accounted for Using The Equity Method 3 91 143 100 128 OPERATING PROFIT 2,393 1,631 2,648 1,491 Financial Income 24 355 29 689 146 Financial Expenses (-) 24 (1,095) (304) (995) (41) Monetary Gain 23 10 6 3 PROFIT BEFORE TAX 1,676 1,366 2,348 1,599 Tax Income / (Expense) 37 (76) (323) (221) Current Income Tax Expense (-) 25 (310) (208) (401) (275) Deferred Tax Income 25 347 132 78 54 NET PROFIT FOR THE PERIOD 1,713 1,290 2,025 1,378 Attributable to: Non-controlling interest (3) (1) (3) - Equity of the Parent 1,716 1,291 2,028 1,378 The accompanying notes are an integral part of these condensed consolidated interim 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 4 Not Reviewed Not Reviewed Not Reviewed Not Reviewed 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 OTHER COMPREHENSIVE INCOME Items That May Be Reclassified To Profit or Loss 237 36 (717) 24 Currency Translation Adjustment 20 19 35 9 (Losses) / Gains on Investments Remeasured FVOCI (85) (81) 12 11 Fair Value Gains / (Losses) on Hedging Instruments Entered into for Cash Flow Hedges 345 103 (960) (4) Fair Value Gains / (Losses) on Hedging Instruments of Investment Accounted by Using the Equity Method Entered into for Cash Flow Hedges 34 6 (22) 13 Tax (Expense) / Income of Other Comprehensive Income (77) (11) 218 (5) Items That Will Not Be Reclassified To Profit or Loss (6) 6 (1) 3 Actuarial (Loss) / Gains on Retirement Pay Obligation (8) 7 (1) 4 Tax Income / (Expense) of Other Comprehensive Income 2 (1) - (1) OTHER COMPREHENSIVE INCOME / (EXPENSE) FOR THE PERIOD 231 42 (718) 27 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,944 1,332 1,307 1,405 Attributable to: Non-controlling interest (3) (1) (3) - Equity holders of the parent 1,947 1,333 1,310 1,405 Basic Earnings Per Share (Full US Cents) 26 1.24 0.93 1.47 1.00 Diluted Earnings Per Share (Full US Cents) 26 1.24 0.93 1.47 1.00 The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIES Condensed Consolidated Interim Statement of Changes in Equity For the Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) The accompanying notes are an integral part of these condensed consolidated interim financial statements. 5 Items That Will Not Be Reclassified Subsequently To 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 - - - (6) 20 285 (68) - - 1,716 1,947 (3) 1,944 Increase through treasury share transactions - - (7) - - - - - - - (7) - (7) As of 30 September 2026 1,597 1 (54) (293) (144) 147 3 91 20,188 1,716 23,252 (1) 23,251 Retained Earnings Items That May Be Reclassified Subsequently To Profit or Loss Items That Will Not Be Reclassified Subsequently To 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 - - - - - - - 6 3,419 (3,425) - - - Dividends paid - - 1 - - - - - (243) - (242) - (242) Total comprehensive income - - - (1) 35 (764) 12 - - 2,028 1,310 (3) 1,307 Increase through treasury share transactions - - (6) - - - - - - - (6) - (6) As of 30 September 2025 1,597 - (44) (285) (179) (144) 30 81 17,288 2,028 20,372 1 20,373 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 6 Not Reviewed Not Reviewed Notes 1 January - 30 September 2026 1 January - 30 September 2025 1,713 2,025 1,057 1,188 Adjustments for Depreciation and Amortisation Expense 11 and 12 2,029 1,757 Adjustments for Provisions Related to Employee Benefits 14 and 16 70 81 Adjustments for Other Provisions 70 4 Adjustments for Doubtful Receivables 32 1 Adjustments for Interest Income 23 and 24 (1,415) (1,001) Adjustments for Interest Expense 24 552 398 Adjustments for Unrealised Foreign Exchange Losses/(Gains) 52 (136) Adjustments for Fair Value Losses on Derivative Financial Instruments 24 28 65 Adjustments for Undistributed (Gains) of Associates 3 (91) (100) Adjustments for Tax (Income)/Expense 25 (37) 323 Adjustments for Gains Arised from Sale of Property, Plants and Equipments 23 (8) (5) Other Adjustments for Non-Cash Transactions 23 (225) (199) 331 120 Decrease/(Increase) in Trade Receivables from Related Parties 8 3 (30) Increase in Trade Receivables from Third Parties (494) (218) (Increase)/Decrease in Other Receivables from Related Parties 8 (3) 4 Decrease in Other Receivables from Third Parties 9 and 23 325 233 Increase in Inventories (166) (227) Increase in Prepaid Expenses (693) (302) Increase/(Decrease) in Trade Payables to Related Parties 8 138 (9) Increase in Trade Payables to Third Parties 178 252 Increase / (Decrease) in Payables Due to Employee Benefits 93 (65) Decrease in Other Payables to Related Parties 8 (8) - Increase/(Decrease) in Other Payables to Third Parties 148 (108) Increase in Deferred Revenue 816 574 (Increase)/Decrease in Other Assets (6) 16 Cash Flows From Operations 3,101 3,333 Payments for Provisions Related with Employee Benefits 16 (16) (9) Income Taxes Paid 25 (282) (124) 2,803 3,200 Proceeds From Sales of Property, Plant and Equipment and Intangible Assets 11,12 and 23 57 15 Payments For Purchasing of Property, Plant and Equipment and Intangible Assets (1,850) (1,361) Payments For Purchasing and Sales of Other Financial Assets 6 (1,554) (995) Other Cash Advances and Loans (356) 98 Dividends Received 3 12 21 Interest Received 23 1,172 711 (2,519) (1,511) Payments to Acquire Entity's Own Shares (7) (5) Proceeds From Loans 7 5,233 2,229 Repayments of Loans 7 (3,786) (2,502) Payments of Lease Liabilities 7 (1,731) (1,591) Dividend Paid to Shareholders - (223) Interest Paid (300) (227) Interest Received 5 and 24 229 378 (362) (1,941) (78) (252) (201) 36 (279) (216) 5 1,941 2,556 5 1,662 2,340 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 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 Foreign Exchange Differences 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 The accompanying notes are an integral part of these condensed consolidated interim 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 7 1. GROUP ORGANIZATION AND ITS OPERATIONS Türk Hava Yolları Anonim Ortaklığı (the “Company” or “THY”) was incorp orated in Türkiye in 1933. As of 30 September 2026 and as of 31 December 2025 , the shareholders and their respect ive shareholdings in the Company are as follows: 30 September 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 treasury shares) 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 number of employees working for the Group as of 30 September 2026 is 6 6,549 (31 December 2025: 66,649). The average number of employees working for the Group for the period ended 30 September 2026 and 2025 are 66,657 and 64,603 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 Nine-Month Period Ended 30 September 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 The table below sets out the consolidated subsidia ries of the Group as of 30 September 2026 and a s of 31 December 2025: Country of Company Name Principal Activity 30 September 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 9 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 September 2026 and as of 31 December 2025: Country of Company Name Principal Activity 30 September 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 Akaryakıt 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 Nine-Month Period Ended 30 September 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 Statement of Compliance The condensed consolidated interim financial statement s as at and for the nine-month period ended 30 September 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 consolidated interim financial statements as of 30 September 2026 on 3 November 2026. General As sembly and the related regulatory bodies have the authority to modify the statutory financial statements. Basis of Preparation The consolidated financial statements, except for some financial instruments that are stated at fair value, have been prepared on the historical cost basis. Historical cost is generally based on the fair value of the consideration paid in exchange for goods or services. Functional and Reporting Currency Functional currency The consolidated financial statements of the Group are presented i n US D, 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 currency of the country in which the Company is registered is Turkish Lira ( “TL”), the Company’s functional currency is determined as US D. USD is used to a signi ficant extent in, and has a significant impact on the operations of the Company and reflects the economic substance of the underlying events and circu mstances relevant to the Company. Therefore, the Company uses USD in measuring items in its financial statements and as the functional currency. All currencies other than those selected for measuring items in the consolidated financial statements are treated as foreign currencies. Accordingly, transactions and balances not already m easured in USD have been remeasured in USD in accordance w ith the relevant provisions of I AS 21 , “the Effects of Changes in Foreign Exchange Rates”. Except where otherwise indicated, all amounts disclosed in financial statements and notes are rounded the nearest million (USD 000,000).
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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 Nine-Month Period Ended 30 September 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) Functional and Reporting Currency (cont’d) Functional currency (cont’d) Financial reporting in hyperinflationary economies As of 30 September 2026 , an adjustment has been made in accordance with the requirements of IAS 29, Financial Reporting in Hyperinflationary Economies (“IAS29”) regarding the changes in the general purchasing power of TL. In terms of IAS 29 it is required that financial statements prepared in the currency in circulation in the economy with hyperinflation should be expressed in the unit of measurement valid at the balance sheet date, and the amounts in comparative periods should be prepared in the same way. One of the requirements for the applica tion of IAS 29 is a three -year cumulative inflation rate approaching or exceeding 100%. The correction was made using the correction factor obtained from the Consumer Price Index in Türkiye published by Turkish Statistical Institute (“TUIK”). The indices and adjustment factors used to prepare the consolidated financial statements are as follows: Date Index (*) Adjustment Factor Compound Inflation Rate 30 September 2026 137.23 1.00000 158% 31 December 2025 110.39 1.24317 211% 30 September 2025 105.78 1.29732 222% (*) As of 2026, the base year for index series has been updated to 2025=100 by TUIK. 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 Güvenlik ve Koruma Hizmetleri A.Ş. , TKPAY, THY Ortak Sağlık ve Güvenlik Birimi Hizmetleri A.Ş., THY Gayrimenkul Yatırım Hizmetleri A.Ş., and THY Spor A.Ş . The main procedures for the above-mentioned restatement are as follows: • Financial sta tements prepared in the currency of a hyperinflationary economy are stated in terms of the measuring unit current at the balance sheet date, and corresponding figures for previous periods are restated in the same terms. • Monetary assets and liabilities tha t are carried at amounts current at the balance sheet date are not restated because they are already expressed in terms of the monetary unit current at the balance sheet date. • Non-monetary assets and liabilities that are not carried at amounts current at the balance sheet date and components of equity are restated by applying the relevant monthly conversion factors. • All items in the statement of profit or loss are restated by applying the relevant conversion factors. • Financial statements from prior report ing periods have been adjusted based on the current purchasing power of money as of the balance sheet date. • The impact of inflation on the Group’s net monetary liability position has been reflected in the statement of profit or loss as a gain on the net monetary position. • All items in the balance sheet , statement of profit or loss and other comprehensive income of the subsidiaries whose functional currencies are TL are translated into USD using the closing rate as of 30 September 2026. The combined effect o f the restating in accordance 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 12 2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d) 2.1 Basis of Presentation (cont’d) Basis of Consolidation a. The consolidated financial statements include the accounts of the parent company, THY, its subsidiaries and its joint ventures on the basis set out in sections (b) below. Financial statements of the subsidiaries and joint ventures are adju sted where applicable in order to apply the same accounting policies. All transactions, balances, profit and loss within the Group are eliminated during consolidation. b. The Group has nine joint ventures as disclosed in Note: 1. These joint ventures are economic activities whereby decisions about strategic finance and operating policy are jointly made by the consensus of the Group and other investors. The joint ventures are jointly controlled by the Group and other shareholders and are accounted for using the equity method. Under the equity method, joint ventures are initially recognized at cost and adjusted to recognize any distributions received, impairments in the joint ventures and the Group’s share of the profit or loss after the date of acquisition. Joint ventures’ losses that exceed the Group’s share are not recognized, unless the Group has incurred legal or constructive obligations on behalf of the joint venture. c. The non -controlling share in the assets and results of subsidiaries for the year are sep arately classified as “non -controlling interest” in the consolidated statements of financial position and consolidated statements of profit or loss. 2.2 Changes and Errors in Accounting Policies and Estimates Changes in accounting estimates are applied prospectively: if a change relates only to a single period, it is applied in the current period in which the change is made; if it relates to future periods, it is applied both in the period of the change and in those future periods. Material accounting errors that are identified are applied retrospectively, and the financial statements of prior periods are restated. The significant estimates and assumptions used in the preparation of these consolidated financial statements as at and for the period ended 30 September 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 accounting policies used in preparation of conden sed consolidated interim financial statements as at 30 September 2026 are consistent with those used in the preparation of consolidated financial statements 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 Nine-Month Period Ended 30 September 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 a) Standards, amendments, and interpretations applicable as of 30 September 2026: Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments; effective from annual reporting period s 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 contrac tual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and • make updates to the disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI). Annual improvements to IFRS – Volume 11; effective from annual periods beginning on or after 1 January 2026 (earlier application permitted). Annual improvements are limited to changes that either clarify the wording in an Ac counting 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 source of its generation depends on uncontrolla ble 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 Nine-Month Period Ended 30 September 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 effective as of 30 September 2026: Amendments to IAS 21 - Translation to a Hyperinflationary Presentation Currency ; effective from annual p eriods beginning on or after 1 January 2027 (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 currency 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 f ocus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to: • the structure of the statement of profit or loss; • required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity’s financial statements (that is, management -defined performance measures); and • enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general. Amendment to IA S 28 – Fair Value Option in Investments in Associates and Joint Ventures; effective from annual periods beginning on or after 1 January 2027. If an entity has elected to apply IFRS 18 early and to use the fair value option granted by these amendments (for example, for a 30 September 2026 period -end), the entity should apply the amendments retrospectively for the reporting period ending on or after the issuance of these amendments (that is, also for the 30 September 2026 period -end). These amendments clarify which entities are eligible to measure investments in associates and joint ventures at fair value under IAS 28. The exemption from applying the equity method in IAS 28 allows eligible entities to make an election to measure investments in associates and joint ventures at fair value through profit or loss (‘fair value option’). This election has to be made separately for each associate or joint venture at initial recognition. These amendments address stakeholders’ concerns about the diversity in practice w hen determining the scope of entities eligible to apply the fair value option. This diversity has become increasingly important because the measurement at either fair value or using the equity method affects the classification of income and expenses in the statement of profit or loss under IFRS 18 in either the operating or the investing category.
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 15 2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d) 2.4 New and Revised Standards and Interpretations (cont’d) b) Standards, amendments, and interpret ations that are issued but not effective as of 30 September 2026 (cont’d): Amendment to IFRS 19 Subsidiaries without Public Accountability: Disclosures’; effective from annual periods beginning 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 IFRS 19 was issued, it did not contain reduced versions of any disclosure requireme nts 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 t o 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 beginning 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 regulation affects an entity’s financial performance, financial position and its prospects for future cash flows. IFRS 20 will affect entities subject to rate regulation that determines how much an entity can charge customers and when it can charge them. Entities that supply vital services such as electricity, water and gas are often subject to this type of regulation. If there is a difference between when an entity supplies regulatory goods and services and when it charges customers for those goods and services, reported revenue may not fully reflect the entity’s performance in a period. IFRS 20 calls this a ‘ difference in timing’. The key principle of IFRS 20 is that an entity should recognise the total allowed compensation for regulatory goods or services in the same reporting period that the entity supplies those regulatory goods or services. IFRS 20 requires entities to account for the effects of differences in timing in their financial statements by recognising regulatory assets and regulatory liabilities and the resulting regulatory income and regulatory expense. IFRS 19 Subsidiaries without Public Accoun tability: Disclosures; effective from annual periods beginning on or after 1 January 2027 (earlier application permitted). This new standard and amendments work alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19’s reduced disclosure requirements balance the information needs of the users of eligible subsidiaries’ financi al statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if: • Does not have public accountability; and • Has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards. 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 16 2. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (cont’d) 2.5 Determination of Fair Values Various accounting policies and explanations of the Group necessitate to determine the fair value of both financial and non -financial assets and liabilities. If applicable, additional information 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 liabilities. - Level 2: Variables obtained directly (via prices) or indirectly (by deriving from prices) which are observable for similar assets and liabilities other than quoted prices mentioned in Level 1. - Level 3: Variables, which are not related to observable market variable for assets and liabilities (unobservable variables). 2.6 Going Concern The Group has prepared its consolidated financial statements with the assumption on the Group’s ability to continue its operations in the foreseeable future as a going concern. 2.7 Other The impacts of the conflicts that began in the Middle East 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 17 3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD The joint ventures accounted for using the equity method are as follows: 30 September 2026 31 December 2025 SunExpress 372 354 Turkish DO&CO 138 100 TGS 118 101 TEC 108 102 TFS Akaryakıt 75 48 THY Opet 51 45 Goodrich 9 8 We World Express 5 5 876 763 Share of investments’ profit / (loss) accounted by using the equity method is as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 TFS Akaryakıt 35 1 14 9 Turkish DO&CO 27 12 28 12 TGS 15 11 14 5 THY Opet 6 (1) 8 6 TEC 6 1 13 9 Goodrich 1 - - - SunExpress 1 119 23 87 Air Albania (*) - - - - 91 143 100 128 (*) Since 31 December 2019, the loss of Air Albania, which exceeds the Group’s total share in the joint venture’s shareholders’ equity, has not been accounted for in the consolidated financial statements. As of 30 September 2026, the loss is USD 10. (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 September 2026 30 September 2025 Opening balance 763 644 Share of net profit 91 100 Foreign currency translation difference 18 46 Other comprehensive income / (expense) recognized in equity 16 (26) Dividends to shareholders (12) (21) Closing balance 876 743
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 18 3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (cont’d) SunExpress TEC Turkish DO&CO TGS TFS Akaryakıt THY Opet Other Total Total assets 3,714 388 470 489 901 289 43 6,294 Current assets 1,373 320 325 221 879 236 41 3,395 Non-current assets 2,341 68 145 268 22 53 2 2,899 Total liabilities 2,971 168 194 253 600 187 10 4,383 Current liabilities 1,355 107 173 176 597 171 10 2,589 Non-current liabilities 1,616 61 21 77 3 16 - 1,794 Total equity 743 220 276 236 301 102 33 1,911 Other comprehensive income / (expense) 30 - (30) (64) - (3) - (67) Group's share in total equity 372 108 138 118 75 51 14 876 Revenue 1,058 204 237 308 1,495 296 12 3,610 Profit for the period 237 3 24 23 4 (3) - 288 Group's share in joint venture's profit / (loss) for the period 119 1 12 11 1 (1) - 143 Revenue 1,917 577 670 809 3,866 738 53 8,630 Profit for the period 1 13 53 31 141 12 3 254 Group's share in joint venture's profit for the period 1 6 27 15 35 6 1 91 30 September 2026 1 July - 30 September 2026 1 January - 30 September 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 19 3. INVESTMENTS ACCOUNTED FOR 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 (expense) (24) (4) (29) (55) - (2) - (114) Group's share in total equity 354 102 100 101 48 45 13 763 Revenue 949 148 236 271 977 233 24 2,838 Profit for the period 173 18 25 11 36 12 - 275 Group's share in joint venture's profit for the period 87 9 12 5 9 6 - 128 Revenue 1,782 477 594 682 2,410 554 66 6,565 Profit for the period 45 27 57 28 56 16 - 229 Group's share in joint venture's profit for the period 23 13 28 14 14 8 - 100 1 July - 30 September 2025 1 January - 30 September 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 20 4. SEGMENT REPORTING Group management makes decisions regarding resource allocation to segments based upon the results and the activities of its air transpo rt and aircraft technical maintenance services segments for the purpose of evaluating segment performance. 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 Group’s aviation activities mainly consist of domestic and international passenger and cargo air transportation. Technical Maintenance Services (“Technic”) The Group’s technical activities mainly consist of aircraft repair and mai ntenance services and providing technical and infrastructure support related to the aviation sector. 4.1 Total Assets and Liabilities Total Assets 30 September 2026 31 December 2025 Aviation 53,594 47,540 Technic 2,492 2,450 Total 56,086 49,990 Less: Eliminations due to consolidation (3,289) (3,387) Total assets in consolidated financial statements 52,797 46,603 Total Liabilities 30 September 2026 31 December 2025 Aviation 29,278 25,501 Technic 1,011 725 Total 30,289 26,226 Less: Eliminations due to consolidation (743) (937) Total liabilities in consolidated financial statements 29,546 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 21 4. SEGMENT REPORTING (cont’d) 4.2 Net Profit / (Loss) Segment Results: 1 January - 30 September 2026 Aviation Technic Inter-segment elimination Total Sales to External Customers 20,941 479 - 21,420 Inter-Segment Sales 465 1,475 (1,940) - Revenue 21,406 1,954 (1,940) 21,420 Cost of Sales (-) (19,158) (1,911) 2,025 (19,044) Gross Profit 2,248 43 85 2,376 General Administrative Expenses (-) (648) (109) 282 (475) Selling and Marketing Expenses (-) (1,480) (25) 10 (1,495) Other Operating Income 917 81 (474) 524 Other Operating Expenses (-) (146) (73) 97 (122) Operating Profit / (Loss) Before Investment Activities 891 (83) - 808 Income from Investment Activities 1,661 - - 1,661 Expenses from Investment Activities (167) - - (167) Share of Investments' Profit Accounted for Using The Equity Method 83 8 - 91 Operating Profit / (Loss) 2,468 (75) - 2,393 Financial Income 341 23 (9) 355 Financial Expense (-) (1,074) (30) 9 (1,095) Monetary Gain 23 - - 23 Profit / (Loss) Before Tax 1,758 (82) - 1,676 Tax Income / (Expense) 52 (15) - 37 Current Tax Expense (-) (310) - - (310) Deferred Tax Income 362 (15) - 347 Net Profit / (Loss) For The Period 1,810 (97) - 1,713
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 22 4. SEGMENT REPORTING (cont’d) 4.2 Net Profit / (Loss) (cont’d) Segment Results (cont’d): 1 January - 30 September 2025 Aviation Technic Inter-segment elimination Total Sales to External Customers 17,341 479 - 17,820 Inter-Segment Sales 406 1,375 (1,781) - Revenue 17,747 1,854 (1,781) 17,820 Cost of Sales (-) (15,071) (1,604) 1,866 (14,809) Gross Profit 2,676 250 85 3,011 General Administrative Expenses (-) (550) (92) 239 (403) Selling and Marketing Expenses (-) (1,337) (23) 5 (1,355) Other Operating Income 845 44 (405) 484 Other Operating Expenses (-) (91) (33) 76 (48) Operating Profit Before Investment Activities 1,543 146 - 1,689 Income from Investment Activities 924 - - 924 Expenses from Investment Activities (64) (1) - (65) Share of Investments' Profit Accounted for Using The Equity Method 87 13 - 100 Operating Profit 2,490 158 - 2,648 Financial Income 672 17 - 689 Financial Expense (-) (973) (22) - (995) Monetary Gain 6 - - 6 Profit Before Tax 2,195 153 - 2,348 Tax (Expense) / Income (330) 7 - (323) Current Tax Expense (-) (398) (3) - (401) Deferred Tax Income 68 10 - 78 Net Profit For The Period 1,865 160 - 2,025 4.3 Investing Activities 1 January - 30 September 2026 Aviation Technic Inter-segment elimination Total Purchase of property and equipment, intangible assets, and right of use assets 4,212 433 - 4,645 Current year depreciation and amortization charge 1,902 127 - 2,029 Share of Investments' Profit Accounted for Using The Equity Method 83 8 - 91
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 23 4. SEGMENT REPORTING (cont’d) 4.3 Investing Activities (cont’d) 1 January - 30 September 2025 Aviation Technic Inter-segment elimination Total Purchase of property and equipment, intangible assets, and right of use assets 3,300 327 - 3,627 Current year depreciation and amortization charge 1,639 118 - 1,757 Share of Investments' Profit Accounted for Using The Equity Method 87 13 - 100 5. CASH AND CASH EQUIVALENTS 30 September 2026 31 December 2025 Cash 1 1 Banks – Time deposits 902 1,164 Banks – Demand deposits 598 843 Investment Fund 242 - 1,743 2,008 Reconciliation with statement of cash flows as of 30 September 2026 and 2025 is as follows: 30 September 2026 30 September 2025 Cash and cash equivalents 1,743 2,417 Interest accruals (-) (81) (77) Cash and cash equivalents in statement of cash flows 1,662 2,340 Details of the time deposits as of 30 September 2026 and as of 31 December 2025 are as follows: Original Amount Currency Effective Interest Rate Maturity 30 September 2026 18,000 TL 33.15% -36.45% December 2026 447 350 EUR 2.93% -3.75% December 2026 400 55 USD 3.75% November 2026 55 902 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
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 24 6. FINANCIAL INVESTMENTS Short-term financial investments are as follows: 30 September 2026 31 December 2025 Fair value through profit and loss (FVTPL) - Investment Fund 292 338 Fair value through other comprehensive income (FVOCI) (*) - Corporate debt securities 1,762 3,519 - Government debt securities 629 110 Time deposits with maturity more than 3 months 2,003 298 4,686 4,265 Time deposit with maturity of more than 3 months as of 30 September 2026 and as of 31 December 2025 are as follows: Amount Currency Effective Interest Rate Maturity 30 September 2026 79,646 TL 32.18% - 40.05% September 2027 1,889 100 EUR 3.56% - 3.60% July 2027 114 2,003 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 September 2026 31 December 2025 FVOCI (*) - Corporate debt securities 2,797 1,346 - Government debt securities 789 1,312 Time deposits with maturity more than 1 year 229 24 Other 1 1 3,816 2,683 (*) Eurobonds with a market value of USD 782 have been pledged as collateral for a 3 -year term loan, with all rights and rewards retained by 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 25 6. FINANCIAL INVESTMENTS (cont’d) Time deposit with maturity of more than 1 year as of 30 September 2026 and as of 31 December 2025 are as follows: Amount Currency Effective Interest Rate Maturity 30 September 2026 9,500 TL 37.04% - 39.38% December 2027 201 25 EUR 3.75% October 2027 28 229 Amount Currency Effective Interest Rate Maturity 31 December 2025 1,000 TL 36.09% January 2027 24 Contractual maturity dates of financial investments measured at FVOCI as of 30 September 2026 and as of 31 December 2025 are as follows: 30 September 2026 31 December 2025 Less than 1 year 2,391 3,629 1 to 5 years 3,104 1,970 Over 5 years 482 688 5,977 6,287 7. BORROWINGS Short-term borrowings are as follows: 30 September 2026 31 December 2025 Bank borrowings 1,549 1,632 Short-term portions of long-term borrowings are as follows: 30 September 2026 31 December 2025 Lease liabilities (Note 13) 2,237 2,007 Bank borrowings 259 145 2,496 2,152 Long-term borrowings are as follows: 30 September 2026 31 December 2025 Lease liabilities (Note 13) 14,082 12,879 Bank borrowings 2,515 1,141 16,597 14,020 The maturity analysis for bank loans as of 30 September 2026 and as of 31 December 2025 are as follows: 30 September 2026 31 December 2025 Less than 1 year 1,808 1,777 Between 1 – 5 years 2,446 1,138 Over 5 years 69 3 4,323 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 26 7. BORROWINGS (cont’d) Details of bank borrowings as of 30 September 2026 and as of 31 December 2025 are as follows: Original Amount Currency Interest Rate Type Effective Interest Rate Payment Period 30 September 2026 10,586 CNY Fixed 2.80% - 3.20% November 2029 - September 2031 1,588 1,365 EUR Fixed 2.12% - 3.39% October 2026 - August 2027 1,549 595 EUR Floating Euribor + 0.65% - Euribor + 2.30% June 2029 - September 2041 675 298 CHF Floating Saron + 1.45% March 2029 358 153 USD Fixed 4.00% March 2027 153 4,323 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 of 30 September 2026 , in respect of borrowings amounting to USD 27,216,426 under the terms of the loan agreement entered into between a bank and TH Y, the Group is required to comply with the following financial covenants: a. Net Worth will not at any time be 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 of 30 September 2026, in respect of borrowings amounting to USD 440,960,415 under the terms of the loan agreement entered into between a bank and THY, the Group is required to comply with the following financial covenants: a. Net Worth will not at any time be 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 of 30 September 2026, in respect of borrowings amounting to USD 734,934,024 under the terms of the loan agreement entered into between a bank and THY, the Group is required to comply with the following financial covenants: a. Net Worth will not at any time be 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 September 2026 , there have been no changes in the covenant terms 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 27 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 September 2026 Bank Borrowings 2,918 (3,786) (61) 19 5,233 4,323 1 January 2025 Payment Interest Non-cash Changes (*) Additions 30 September 2025 Bank Borrowings 1,895 (2,502) (45) 198 2,229 1,775 1 January 2026 Payment Interest Non-cash Changes (*) Modifications New Leases 30 September 2026 Aircraft 13,970 (1,651) (186) 122 67 3,100 15,422 Property 910 (76) - 6 46 7 893 Other 6 (4) - 1 1 - 4 14,886 (1,731) (186) 129 114 3,107 16,319 1 January 2025 Payment Interest Non-cash Changes (*) Modifications New Leases 30 September 2025 Aircraft 11,287 (1,520) (187) 1,050 4 2,221 12,855 Property 678 (69) - 132 65 59 865 Other 1 (2) - 1 - 7 7 11,966 (1,591) (187) 1,183 69 2,287 13,727 (*) 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 28 8. RELATED PARTIES Short-term trade receivables from related parties are as follows: 30 September 2026 31 December 2025 TGS 22 19 SunExpress 8 13 Türk Telekom 2 3 TEC 1 1 33 36 Other long-term receivables from related parties are as follows: 30 September 2026 31 December 2025 Air Albania 56 53 Short-term trade payables to related parties are as follows: 30 September 2026 31 December 2025 TFS Akaryakıt Hizmetleri 199 116 TGS 81 77 TEC 73 42 Turkish DO&CO 59 51 THY Opet 28 14 Turkcell 3 2 SunExpress 2 2 Goodrich 1 3 Türk Telekom 1 2 447 309 Other short-term payables to related parties are as follows: 30 September 2026 31 December 2025 Türkiye Sigorta 22 30 Air Albania 1 1 23 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 29 8. RELATED PARTIES (cont’d) Transactions with related parties for the period ended 30 September 2026 and 2025 are as follows: a) Sales to related parties: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 TGS 87 34 77 35 SunExpress 48 14 69 41 Türk Telekom 9 5 13 9 Türkiye Sigorta 6 2 6 2 TEC 4 2 4 3 Goodrich 2 1 1 - PTT 1 - 1 - Turkish DO&CO 1 1 3 3 Turkcell 1 1 - - Air Albania - - 2 1 159 60 176 94 b) Purchases from related parties: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 TFS Akaryakıt Hizmetleri 3,090 1,162 1,920 722 TGS 790 323 668 299 Turkish DO&CO 560 208 489 189 THY Opet 367 129 242 91 TEC 47 22 343 118 Goodrich 19 5 17 7 Turkcell 11 4 9 3 Türk Telekom 8 3 30 19 Türkiye Sigorta 5 4 7 3 SunExpress 1 1 57 32 Ziraat Bankası - - 4 3 Halkbank - - 3 2 4,898 1,861 3,789 1,488 Details of the fi nancial assets and liabilities for related parties as of 30 September 2026 and as of 31 December 2025 are as follows: 30 September 2026 31 December 2025 Debt Securities (*) 2,626 3,032 Banks - Time deposits (**) 30 127 Banks - Demand deposits 44 124 Financial investments (***) 44 - Investment Fund 28 83 Bank borrowings (103) - (*) The amount mainly consists of debt securities issued by Vakıfbank. Additionally, Eurobonds with a market value of USD 166 have been pledged as collateral for a 3-year term loan, with all rights and rewards retained by the Group. (**) The amount mainly consists of time deposits held at Ziraat Katılım. (***) The amount mainly consists of financial investments held at Vakıfbank.
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 30 8. RELATED PARTIES (cont’d) Details of the time deposits at related parties as of 30 September 2026 and as of 31 December 2025 are as follows: Amount Currency Effective Interest Rate Maturity 30 September 2026 30 USD 3.75% November 2026 30 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 September 2026 , the amount of letters of guarantee given through related financial institutions is USD 151. (31 December 2025: USD 138). Details of the debt securities at related parties as of 30 September 2026 and as of 31 December 2025 are as follows: Amount Currency Effective Interest Rate Maturity 30 September 2026 2,111 USD 5.50% - 10.12% October 2026 - October 2034 2,111 453 EUR 4.25% - 4.50% February 2027 - January 2028 515 2,626 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 Details of the bank borrowings at related parties as of 30 September 2026 are as follows: Amount Currency Effective Interest Rate Maturity 30 September 2026 91 EUR Euribor + 2.30% September 2041 103
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 31 8. RELATED PARTIES (cont’d) Interest income from related parties: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Vakıfbank 80 20 222 25 Ziraat Bankası 46 11 166 37 Halkbank 8 - 63 21 Ziraat Katılım - - 33 8 134 31 484 91 Debt securities from related parties: 30 September 2026 31 December 2025 Vakıfbank 1,873 2,683 Ziraat Bankası 637 198 Halkbank 100 101 Türkiye Wealth Fund 16 17 Halk Yatırım - 33 2,626 3,032 Interest income from debt instruments of related parties: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Vakıfbank 75 26 74 39 Ziraat Bankası 22 10 11 7 Halk Yatırım 10 1 1 1 Halkbank 7 3 - - Türkiye Wealth Fund 1 - 1 - Turkcell - - 1 1 115 40 88 48
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 32 8. RELATED PARTIES (cont’d) Fair value gains / (losses) from debt instruments from related parties: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Vakıfbank 5 - (10) (10) Türkiye Wealth Fund 1 1 (1) (1) Ziraat Bankası - (8) (14) (14) Halkbank - (1) (3) (3) Turkcell (1) (1) - - 5 (9) (28) (28) Transactions between the Group and TFS Akaryakıt and THY Opet are related to the supply of aircraft fuel; transactions between the Group and Turkish DO&CO are related to catering services; transactions between the Group and SunExpress are related to aircraft transportation , seat sales operations and maintenance services; transactions between the Group and TGS are related to ground , support and technology services; transactions between the Group and TEC are related to engine maintenance services; transactions between the Group and PTT are related to cargo transportation; transactions between the Group and Halk bank, Ziraat Bankası , Vakıfbank, Halk Yatırım and Ziraat Katılım are related to banking services ; transactions between the Group and Air Albania are related to aircraft transportation; transactions between the Group and Turkcell and Türk Telekom are related to telecommunication services ; transactions between the Group and Goodrich are related to maintenance services; transactions between the Group and Türkiye Sigorta are related to insurance services; transactions between the Group and We World Express are relate d to cargo transportation . 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 16 for the period between 1 January - 30 September 2026 (1 January - 30 September 2025: USD 13).
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 33 9. OTHER RECEIVABLES Other short-term receivables from third parties as of 30 September 2026 and as of 31 December 2025 are as follows: 30 September 2026 31 December 2025 Predelivery payments made for aircraft 476 341 Bank deposits with transfer limitations (*) 182 209 Receivables from technical purchases 138 196 Tax refund 51 46 Receivables from pilots for flight training 50 41 Others 116 86 1,013 919 (*) As of 30 September 2026 , the amount consists of bank deposits in Bangladesh, Algeria, Nigeria, Senegal, Niger, Mali, Burkina Faso, Mozambique, Angola, Cameroon, Chad, Gabon, Benin, Cote D’Ivoire, Lebanon, Congo, Ghana, Pakistan, Malawi, Libya and Iran. (As of 31 December 2025 , the amount consists of bank deposits in Ethiopia, Bangladesh, Algeria, Nigeria, Senegal, Niger, Mali, Burkina Faso, Mozambique, Angola, Cameroon, Chad, Gabon, Benin, Cote D’Ivoire, Lebanon, Congo, Ghana, Pakistan, Malawi, Equatorial Guinea, Venezuela, Libya, Syria and Iran). Other long-term receivables from third parties as of 30 September 2026 and as of 31 December 2025 are as follows: 30 September 2026 31 December 2025 Predelivery payments made for aircraft 915 748 Investment incentives 516 535 Receivables from pilots for flight training 242 239 Deposits and guarantees given 62 61 Interest and commodity swap agreement deposits 8 47 Other receivables (**) 340 345 2,083 1,975 (**) The Company's offer to acquire minority shares in Air Europa Holding S.L.U. has been accepted, the relevant agreements have been signed, and the process of obtaining regulatory approvals has commenced. The final shareholding ratio resulting from the EUR 300 million (USD 340) 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 period ended 30 September 2026 and 2025 are as follows: 1 January - 1 January - 30 September 2026 30 September 2025 Investment incentives at the beginning of the period 535 420 Recognised / added during the period 225 198 Foreign currency translation differences (74) (68) Utilised during the period (170) (280) Investment incentives at the end of the period 516 270
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 34 10. DEFERRED REVENUE Deferred revenue as of 30 September 2026 and as of 31 December 2025 are as follows: Deferred revenue is as follows: 30 September 2026 31 December 2025 Passenger flight liabilities 3,621 3,094 Other short-term deferred revenue 640 430 4,261 3,524 Passenger flight liability is as follows: 30 September 2026 31 December 2025 Flight liability for tickets sold 3,305 2,792 Frequent flyer program liability 316 302 3,621 3,094 Other short-term deferred revenues are as follows: 30 September 2026 31 December 2025 Advances received 523 250 Unused manufacturers' credits 44 123 Deferred other contract income 11 11 Other 62 46 640 430 Long-term deferred revenue is as follows: 30 September 2026 31 December 2025 Deferred other contract income 48 54 Other 13 22 61 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 35 11. PROPERTY, PLANT 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 81 33 20 405 73 337 6 590 1,545 Transfers (*) 6 23 4 27 5 - 2 (78) (11) Transfers between the accounts - - 3 468 79 - - 60 610 Disposals - (4) (8) (267) (14) (188) - (5) (486) Closing balance at 30 September 2026 1,760 975 446 11,843 1,319 1,103 330 1,399 19,175 Accumulated Depreciation Opening balance at 1 January 2026 605 497 297 6,470 545 474 166 - 9,054 Depreciation charge 60 35 35 527 72 59 17 - 805 Transfers between the accounts - - - 212 40 - - - 252 Disposals - (4) (8) (254) (14) (28) - - (308) Closing balance at 30 September 2026 665 528 324 6,955 643 505 183 - 9,803 Net book value at 30 September 2026 1,095 447 122 4,888 676 598 147 1,399 9,372 Net book value at 31 December 2025 1,068 426 130 4,740 631 480 156 832 8,463 (*) USD 11 was transferred from construction in progress, of which USD 7 to the right of use assets and USD 4 to intangible assets. USD 1,942 of depreciation and amortization expenses recognized in cost of sales ( 30 September 2025 : USD 1,691), USD 76 of general administrative expenses ( 30 September 2025 : USD 60) and USD 11 of selling and marketing expenses ( 30 September 2025 : USD 6) totalling USD 2,029 for the period ended 30 September 2026 (30 September 2025: USD 1,757). The Group's construction in progress balances mainly consist of İstanbul Airport buildings, aircraft modifications, engine maintenance, backup engines and simulators. There is no mortgage on property, plant and equipment as of 30 September 2026 (30 September 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 36 11. PROPERTY, PLANT 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 11 39 29 270 127 235 14 374 1,099 Transfers 1 1 14 38 29 - 6 (114) (25) Transfers between the accounts - - - 1,395 35 - - - 1,430 Disposals - (4) (4) (193) (16) (210) (10) - (437) Closing balance at 30 September 2025 1,637 906 410 10,880 1,112 940 273 693 16,851 Accumulated Depreciation Opening balance at 1 January 2025 535 457 269 5,401 459 452 156 - 7,729 Depreciation charge 54 33 29 429 64 56 13 - 678 Transfers between the accounts - - - 594 26 - - - 620 Disposals - (3) (3) (187) (16) (37) (10) - (256) Closing balance at 30 September 2025 589 487 295 6,237 533 471 159 - 8,771 Net book value at 30 September 2025 1,048 419 115 4,643 579 469 114 693 8,080
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 37 11. PROPERTY, PLANT 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 (**) 3,019 43 13 1 3,076 Transfers - 7 - - 7 Disposals (100) - (6) - (106) Modifications 67 - 39 - 106 Transfers between the accounts (***) (512) (35) - - (547) Closing balance at 30 September 2026 27,824 412 1,028 11 29,275 Aircraft Spare engines Real estate Vehicles Total Accumulated Depreciation Opening balance at 1 January 2026 6,709 100 139 5 6,953 Depreciation charge 1,137 18 41 2 1,198 Disposals (100) - - - (100) Modifications (300) - - - (300) Transfers between the accounts (***) (232) (20) - - (252) Closing balance at 30 September 2026 7,214 98 180 7 7,499 Net book value at 30 September 2026 20,610 314 848 4 21,776 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 2,364 34 58 6 2,462 Transfers 24 - - - 24 Disposals (95) - (16) (3) (114) Modifications 61 - 113 1 175 Transfers between the accounts (***) (1,416) (14) - - (1,430) Closing balance at 30 September 2025 23,799 411 963 9 25,182 Aircraft Spare engines Real estate Vehicles Total Accumulated Depreciation Opening balance at 1 January 2025 6,245 88 103 4 6,440 Depreciation charge 1,001 18 38 2 1,059 Disposals (95) - (16) (2) (113) Modifications (3) - 47 - 44 Transfers between the accounts (***) (614) (6) - - (620) Closing balance at 30 September 2025 6,534 100 172 4 6,810 Net book value at 30 September 2025 17,265 311 791 5 18,372 (**) USD 147 of this amount relates to maintenance of aircraft that will become property at the end of the lease period. (***) Transfers mainly consist of aircraft for which 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 38 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 - 24 - 24 Disposals - (4) - (4) Transfers - 4 - 4 Transfers between the accounts - (27) (36) (63) Closing balance at 30 September 2026 44 374 33 451 Accumulated Amortization Opening balance at 1 January 2026 - 294 16 310 Amortization charge - 25 1 26 Closing balance at 30 September 2026 - 319 17 336 Net book value at 30 September 2026 44 55 16 115 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 - 43 23 66 Disposals - (6) 4 (2) Transfers - 1 - 1 Closing balance at 30 September 2025 44 360 55 459 Accumulated Amortization Opening balance at 1 January 2025 - 279 3 282 Amortization charge - 18 2 20 Closing balance at 30 September 2025 - 297 5 302 Net book value at 30 September 2025 44 63 50 157 (*) 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 39 13. LEASES Maturities of lease liabilities are as follows: 30 September 2026 31 December 2025 30 September 2026 31 December 2025 30 September 2026 31 December 2025 Less than 1 year 2,748 2,428 (511) (421) 2,237 2,007 Between 1 – 5 years 8,008 7,442 (1,395) (1,136) 6,613 6,306 Over 5 years 8,568 7,558 (1,099) (985) 7,469 6,573 19,324 17,428 (3,005) (2,542) 16,319 14,886 Future Minimum Lease Payments Interest Present Values of Minimum Lease Payments 30 September 2026 31 December 2025 Fixed rate lease liabilities 9,936 8,351 Floating rate lease liabilities 6,383 6,535 16,319 14,886 The Group’s assets that are acquired by leasing have lease term s of 1 to 45 years. The Group has options to purc hase related asset s for an insignificant amount at the end of lease terms. The Group’s lease liabilities are secured by the lessors’ title to the leased asset. As of 30 September 2026, the weighted average interest rates on lease payables are 4.94% for USD (31 December 2025 : 4.56%), 3.27% for EUR ( 31 December 2025 : 2.64%), 4.32% for CNY ( 31 December 2025: 4.32%), 2.06% for JPY (31 December 2025 : 1.34%), 27.86% for TL ( 31 Decembe r 2025 : 29.21%) and 1.14% 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 September 2026 and as of 31 December 2025 are as follows: Short-term provision for employee benefits is as follows: 30 September 2026 31 December 2025 Provisions for unused vacation 154 131 Changes in the provisions for the period ended 30 September 2026 and 2025 are set out below: 1 January - 1 January - 30 September 2026 30 September 2025 Provisions at the beginning of the period 131 101 Provisions for the current period 1,046 872 Foreign currency translation differences (19) (18) Provisions released (1,004) (818) Provisions at the end of the period 154 137
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 40 14. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d) Other short-term provisions are as follows: 30 September 2026 31 December 2025 Provisions for legal claims 24 18 Changes in the provisions for legal claims for the period ended 30 September 2026 and 2025 are set out below: 1 January - 1 January - 30 September 2026 30 September 2025 Provisions at the beginning of the period 18 14 Provisions for the current period 9 6 Provisions released - (2) Foreign currency translation differences (3) (3) Provisions at the end of the period 24 15 The Group recognizes provisions for lawsuits filed against it in the course of its operations. The lawsuits initiated against the Group are usually reemployment law suits by former employees or related to damaged luggage or cargo. The estimates have been made on the basis of advice from 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 41 15. COMMITMENTS a) Guarantees/Pledges/Mortgages (“GPM”) given by the Group: The amount of letters of guarantee given as of 30 September 2026 is USD 271 (31 December 2025: USD 219). As of 30 September 2026 , the letters of guarantee are given to various authorities ( e.g. various banks and vendors.) Original currency amount USD equivalent Original currency amount USD equivalent A. Total amounts of GPM given on behalf of its own legal entity - 271 - 219 -Collaterals TL 542 11 747 17 EUR 42 48 46 53 USD 190 190 128 128 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 - - - - 271 219 30 September 2026 31 December 2025 As of 30 September 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 613 aircraft that will be delivered between the years 202 6 and 2037, (413 aircraft are contractual and 200 of them are optional) with a list price value of USD 39,475 each. The Group has made a predelivery payment of USD 1,510 gross relevant to these purchases as of 30 September 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 42 16. EMPLOYEE BENEFITS Provisions for retirement pay liability as of 30 September 2026 and as of 31 December 2025 are comprised of the following: 30 September 2026 31 December 2025 Provision for retirement pay liability 306 282 Under Labor L aw, 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 1,505 (full) (equivalent of TL 73,730 (full)) as of 30 September 2026. (31 December 2025: USD 1,256 (full) equivalent to TL 53,920 (full)). Retirement pay liability is not subject to any funding legally. Provisions for retirement pay liability are calculated by estimating the present value of probable liability that will arise due to the retirement of employees. IAS 19 (“Employee Benefits”) stipulates the progress of the Group’s liabilities by use of actuarial valuation methods under defined benefit plans. Actuarial assumptions used in calculation of total liabilities are described as follows: The critical assumption is that the maximum liability amount increases in accordance with the inflation rate for every service year. P rovisions in the accompanying consolidated financial statements as of 30 September 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 non-paid retirement pay retained in the Group due to voluntary leaves is assumed as 2.23% (31 December 2025: 2.33%). Ceiling for retirement pay is revised semi-annually. Ceiling amount of USD 1,505 (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 September 2026 30 September 2025 Provision at the beginning of the period 282 247 Interest cost 62 47 Service cost for the period 28 27 Actuarial loss 8 1 Payments (16) (9) Foreign currency translation difference (58) (49) Provision at the end of the period 306 264
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 43 17. EXPENSES BY NATURE Expenses by nature for the period ended 30 September 2026 and 2025 are as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Fuel 6,929 2,613 4,431 1,649 Personnel 4,992 1,718 4,161 1,485 Depreciation and amortisation 2,029 711 1,757 610 Ground services 1,405 508 1,235 455 Aircraft maintenance 1,220 417 986 356 Passenger services and catering 967 352 870 325 Airport 891 322 811 312 Air traffic control 809 292 720 274 Commissions and incentives 566 194 499 177 Advertisement and promotion 151 50 116 44 IT and communication 146 75 86 32 Reservation systems 141 42 176 57 Service 114 46 73 26 Wet lease 113 32 203 75 Rents 83 34 35 5 Transportation 66 20 65 25 Insurance 48 17 46 16 Taxes and duties 43 13 36 13 Call center 33 10 33 11 Systems use and associateship 29 10 23 6 Aircraft rent 25 6 24 10 Consultancy 22 7 23 9 Utility 18 6 19 6 Other 174 59 139 49 21,014 7,554 16,567 6,027
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 44 18. SHAREHOLDERS’ EQUITY The ownership structure of the Company’s share capital is as follows: (Millions of TL) Class % 30 September 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 0.48 7 Other (publicly held) A 50.33 694 50.40 695 Paid-in capital (Turkish Lira) 1,380 1,380 Inflation adjustment on share capital (Turkish Lira) (**) 1,124 1,124 Share capital (Turkish Lira) 2,504 2,504 Share capital (USD Equivalent) 1,597 1,597 (*) 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 s, the Board of Directors of THY A.O. decided to launch a Share Buy -back program covering 3 calendar years and to allocate a maximum of USD 480 (TL 9,000) for treasur y 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. Under the share buy-back program, the Company purchased 7,640,244 shares with the amount of USD 54 as of 30 September 2026. (**) Inflation adjustment on share capital represents inflation uplift of historical capital payments based on inflation indi ces until 31 December 2004. The Company's issued share capital amounts to TL 1,380,000,000, all of which has been fully 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 the Republic of Türkiye Treasury and Finance Ministry Privatization Administration and has the following privileges: • Articles of Association 7: Positive vote of the board member representing class C share with the Board’s approval is necessary for transfer of shares issued to the name. • Articles of Association 10: The Board of Directors consists of nine members of which one member has to be nominated by the class C shareholder and the other eight member s must be elected by class A shareholders. • Articles of Association 14: The following decisions of the Board of Directors are subject to the positive vote of the class C Shareholder: a) Decisions that will negatively affect the Group ’s mission, as defined in Article 3.1. of the Articles of Association, b) Suggesting change in the Articles of Association at General Assembly, c) Increasing share capital, d) Approval of transfer of the shares issued to the name and their registration to the “Share Registry”, e) Every decision or action which directly or indirectly put s the Group under commitment over 5% of its total assets of the latest annual financial statements prepared for Capital Market Board. (This sentence will expire when the Group’s shares held by Turkish State decrease under 20%.) f) Decisions relating to mergers and liquidation, g) Decisions cancelling flight routes o r significantly reducing 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 45 18. SHAREHOLDERS’ EQUITY (cont’d) Restricted Profit Reserves Turkish Commercial Code (TCC) stipulates that the general legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total re serve 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 worse n, 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 translation differences under equity arise from Group’s joint ventures , provisions for unused vacation, legal claims and retirement pay liability accounted under the equity method , which have functional currencies other than USD. Distribution of Dividends Listed companies distribute dividend in accordance with the Communiqué No. II -19.1 issued by the CMB, which is effective from 1 February 2014. Companies distribute dividends in accordance with their dividend payment policies settled and dividend payment decision taken in general assembly in accordance with relevant legislations. The communiqué does not constitute a minimum dividend rate. Companies distribute dividend in accordance with their dividend policy or articles of associations. In addition, dividend can be distributed by fixed or variable installments and advance dividend can be paid in accordance with profit on the financial statements of the Group. Actuarial Differences on Defined Benefit Plans According to IAS 19, all actuarial differences are recognized in other comprehensive income. Gains/Losses from Cash Flow Hedges Hedge gain/losses against cash flow risk arise from the accounting of the changes in the fair values of effective derivative financial instruments designated against financial risks of future cash flows under equity. Total of deferred gain/loss arising from hedging against financial risk is accounted in profit or loss when the hedged item impacts profit or loss. As of 202 6, lease liabilities and investment borrowings in Japanese Yen, Swiss Fran c, Chinese Yuan and Euro for investment financing are designated as cash flow hedge against exchange rate risk due to highly probable future same foreign currency revenues. Group’s revenue denominated in Euro , Chinese Yuan and Swiss Fran c fully covered borrowings of such foreign currency, while Japanese Yen revenue covered 51% of borrowings. In this context, exchange differences arising from the repayment of such loans 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 46 19. REVENUE Breakdown of revenue and gross profit is as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Passenger revenue Scheduled 16,976 6,683 14,609 5,806 Unscheduled 212 118 149 85 Total passenger revenue 17,188 6,801 14,758 5,891 Cargo revenue Carried by cargo aircraft 1,886 645 1,188 410 Carried by passenger aircraft 1,598 585 1,221 435 Total cargo revenue 3,484 1,230 2,409 845 Total passenger and cargo 20,672 8,031 17,167 6,736 Technical revenue 479 183 479 154 Other revenue 269 84 174 63 Net sales 21,420 8,298 17,820 6,953 Cost of sales (-) (19,044) (6,874) (14,809) (5,416) Gross profit 2,376 1,424 3,011 1,537 Breakdown of total passenger and cargo revenue by geographical locations is as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 - Asia and Far East 6,040 2,134 4,243 1,672 - Europe 5,936 2,508 5,042 2,085 - Americas 3,666 1,363 3,217 1,314 - Africa 1,601 594 1,329 563 - Middle East 1,233 470 1,419 472 International flights 18,476 7,069 15,250 6,106 Domestic flights 2,196 962 1,917 630 Total passenger and cargo revenue 20,672 8,031 17,167 6,736
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 47 20. COST OF SALES Breakdown of the cost of sales is as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Fuel 6,929 2,613 4,431 1,649 Personnel 4,367 1,515 3,569 1,279 Depreciation and amortisation 1,942 681 1,691 587 Ground services 1,405 508 1,235 455 Aircraft maintenance 1,220 417 986 356 Passenger services and catering 967 352 870 325 Airport 891 322 811 312 Air traffic control 809 292 720 274 Wet lease 113 32 203 75 Service 75 31 40 14 Transportation 66 20 65 25 Insurance 42 14 38 13 Rents 39 15 18 2 IT and communication 26 10 20 8 Aircraft rent 25 6 24 10 Taxes and duties 18 5 16 6 Utility 12 4 13 4 Systems use and associateship 9 4 7 3 Other 89 33 52 19 19,044 6,874 14,809 5,416 21. GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES Breakdown of general administrative expenses is as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Personnel 227 69 226 81 IT and communication 101 55 48 16 Depreciation and amortisation 76 26 60 21 Systems use and associateship 15 5 11 3 Rents 12 5 5 1 Taxes and duties 10 4 10 4 Consultancy 7 2 9 4 Utility 6 2 6 2 Insurance 6 3 8 3 Service 4 1 10 3 Other 11 2 10 2 475 174 403 140
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 48 21. GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES (cont’d) Breakdown of selling and marketing expenses is as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Commissions and incentives 566 194 499 177 Personnel 398 134 366 125 Advertisement and promotion 151 50 116 44 Reservation systems 141 42 176 57 Service 35 14 23 9 Call center 33 10 33 11 Rents 32 14 12 2 IT and communication 19 10 18 8 Taxes and duties 15 4 10 3 Consultancy 15 5 14 5 Depreciation and amortisation 11 4 6 2 Systems use and associateship 5 1 5 - Other 74 24 77 28 1,495 506 1,355 471 22. OTHER OPERATING INCOME / EXPENSES Breakdown of other operating income is as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Manufacturers' credits 263 120 270 81 Foreign exchange gains from operational activities, gross 105 42 20 (32) Insurance, indemnities, penalties income 38 11 62 48 Non-interest income from banks 32 10 34 11 Delay interest income 10 1 3 1 Rediscount interest income 9 2 23 2 Rent income 5 - 27 10 Provisions released 2 - 3 - Reversal of ECL provision 1 1 2 1 Other 59 22 40 25 524 209 484 147 Breakdown of other operating expenses is as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Foreign exchange losses from operational activities, gross 47 11 5 (4) Provisions 41 4 10 3 Indemnity and penalty expenses 8 2 12 4 Rediscount interest expenses 7 6 14 8 Other 19 1 7 3 122 24 48 14
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 49 23. INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES Breakdown of income from investment activities is as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Interest income from financial investment 1,172 427 623 198 Income from investment incentives 225 80 199 74 Gain on sale of financial investments 192 80 97 42 Gain on sale of fixed assets 72 43 5 2 1,661 630 924 316 Breakdown of expenses from investment activities is as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Losses on the remeasurement of financial investments 130 71 65 12 Loss on sale of fixed assets 37 - - - 167 71 65 12 24. FINANCIAL INCOME / EXPENSES Breakdown of financial income is as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Interest income 243 53 378 135 Foreign exchange gains from financial activities, gross 112 10 300 11 Fair value gains on derivative financial instruments, net - (34) - - Other - - 11 - 355 29 689 146 Breakdown of financial expenses is as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Foreign exchange losses on financial activities, gross (*) 488 64 520 81 Interest expense from leasing liabilities 370 127 298 112 Interest expense from financial activities 69 30 48 15 Interest expenses on employee benefits 62 21 47 15 Rediscount interest expense from repayments of aircraft, net 51 23 5 3 Fair value losses on derivative financial instruments, net 28 28 65 (189) Aircraft financing expenses 16 6 7 2 Other 11 5 5 2 1,095 304 995 41 (*) As of 30 September 2026, gross foreign exchange losses included in financial expenses mainly consist of foreign exchange losses arising from deposits, borrowings and lease liabilities.
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 50 25. TAX ASSETS AND LIABILITIES Current income tax (assets) / liabilities are as follows: 30 September 2026 31 December 2025 Provisions for corporate tax 239 176 Prepaid taxes and funds (272) (166) Current income tax (assets) / liabilities (33) 10 Tax income / (expense) are as follows: 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Deferred tax income 347 132 78 54 Current period tax (expense) (310) (208) (401) (275) Tax income / (expense) 37 (76) (323) (221) 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 379 (98) 281 (982) 221 (761) Changes in foreign currency translation difference 20 - 20 35 - 35 Change in actuarial losses from retirement pay obligation (8) 2 (6) (1) - (1) Losses on Remeasuring FVOCI (85) 21 (64) 12 (3) 9 Other comprehensive income 306 (75) 231 (936) 218 (718) 1 January - 30 September 2026 1 January - 30 September 2025 There is no taxation effect for the changes in foreign currency translation difference 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 51 25. TAX ASSETS AND LIABILITIES (cont’d) Corporate Tax The general corporate income tax rate is 25 % in Türkiye, t he corporate tax rate is applied with a 5 - point discount on the earnings of exporting institutions derived exclusively from exports. The corporation tax rate is applied to net income of the companies after adjusting for certain disallowable expenses, exempt income and allowances. Turkish tax legislation does not permit a parent company and its subsidiaries to file a consolidated tax return. Therefore, tax liabilities, as reflected in these consolidated financial statements, have been calculated on a separate-entity basis. Deferred Tax The Group recognizes deferred tax assets and liabilities based upon temporary differences between its financial statements as r eported for IFRS purposes and its statutory tax financial statements. These differences usually result in the recognition of revenue and expenses in different reporting periods for IFRS and tax purposes, which are given below. In Türkiye, the companies can not declare a consolidated tax return; therefore, subsidiaries with deferred tax assets were not netted off against subsidiaries with deferred tax liabilities position and they are disclosed separately.
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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 Nine-Month Period Ended 30 September 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) Breakdown of the deferred tax assets and (liabilities) is as follows: 30 September 2026 31 December 2025 Deferred tax asset 674 413 Deferred tax liability (51) (73) Deferred tax asset 623 340 30 September 2026 31 December 2025 Fixed assets 341 161 Expense and income accruals 295 183 Provisions for employee benefits 77 70 Deferred revenue and prepaid expenses 46 66 Lease liabilities (net) (*) 41 29 Provisions for unused vacation 39 32 Miles accruals 33 38 Other incentives 28 22 Carry forward tax losses 9 2 Change in fair value of derivative instruments (52) (25) Adjustments for passenger flight liabilities (161) (179) Other (73) (59) Deferred tax asset 623 340 (*) The related amount includes the effects of lease liabilities and right of use assets on deferred tax assets and liabilities. Pursuant to Law No. 7571 published in the Official Gazette dated 25 December 2025, amendments were made to the Tax Procedure Law ("TPL"). In accordance with these amendments, statutory tax financial statements will not be subject to inflation adjustment for the 202 6 fiscal year, including interim tax periods, as well as for the 2026 and 2027 fiscal years. Furthermore, during these periods in which inf lation accounting is not applied, it will be permissible to revalue depreciable assets in accordance with Article 298, paragraph (Ç) of the TPL. Accordingly, the Group has elected to apply the revaluation practice in the current period, and property, plant and equipment have been carried at their revalued 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 53 25. TAX ASSETS AND LIABILITIES (cont’d) Deferred Tax (cont’d) The changes of deferred tax asset and (liability) for the period ended 1 January – 30 September 2026 and 2025 are as follows: 1 January - 1 January - 30 September 2026 30 September 2025 Opening balance at 1 January 340 337 Deferred tax income 347 78 Tax income from FVOCI 18 (3) Foreign currency translation difference 11 - Tax income of actuarial losses on retirement pay obligation 2 - Tax income from hedging reserves (95) 221 Deferred tax asset at the end of the period 623 633 Reconciliation with current tax expense for the period 1 January – 30 September 2026 and 2025 are as follows: Reconciliation of effective tax charge; 1 January - 30 September 2026 1 July - 30 September 2026 1 January - 30 September 2025 1 July - 30 September 2025 Profit from operations before tax 1,676 1,366 2,348 1,599 Tax calculated with the effective tax rate (419) (341) (587) (400) Taxation effects on: - revaluation 1,145 464 - - - income from investment certificates 56 20 45 17 - investments accounted by using the equity method 23 36 22 28 - unused tax incentive 15 3 9 - - exception 6 2 23 6 - effect of the change in the deferred tax rate - - (75) (52) - non deductible expenses (20) (11) (8) (1) - foreign currency translation difference (769) (249) 248 181 Tax income / (expense) in statement of profit or loss 37 (76) (323) (221) 26. EARNINGS PER SHARE Earnings per share disclosed in the consolidated profit or loss and other comprehensive income is determined by dividing the net income by the weighted average number of shares that have been outstanding during the relevant period. In Türkiye, companies can increase their share capital by making a pro -rata distribution of shares (“bonus interest”) to existing shareholders from retained earnings. For the purpose of earnings per share computations, such bonus shares are regarded as issued shares. Accordingly, the weighted average number of shares outstanding during the years has been adjusted in respect of bonus shares issued without a corresponding change in resources, by giving them retroactive effect for the 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 54 26. EARNINGS PER SHARE (cont’d) Number of total shares and calculation of profits per share a t 1 January – 30 September 2026 and 2025: 1 January - 1 January - 30 September 2026 30 September 2025 Number of shares outstanding at 1 January (in full) 137,993,344,756 137,994,458,955 Number of shares outstanding at 30 September (in full) 137,992,359,756 137,993,723,756 Weighted average number of shares outstanding during the period (in full) 137,992,563,089 137,994,007,095 Net profit for the period 1,714 2,025 Basic earnings per share (Full US Cents) (*) 1.24 1.47 Diluted earnings per share (Full US Cents) (*) 1.24 1.47 (*) 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 September 2026 and as of 31 December 2025 are as follows: Derivative financial assets 30 September 2026 31 December 2025 Derivative instruments not subject to hedge accounting 164 243 Derivative instruments for fuel prices cash flow hedge 128 - Derivative instruments for cross currency rate cash flow hedge 3 3 Derivative instruments for interest rate cash flow hedge - 1 295 247 Derivative financial liabilities 30 September 2026 31 December 2025 Derivative instruments not subject to hedge accounting 54 118 Derivative instruments for fuel prices cash flow hedge 33 30 87 148
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 55 28. NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS Foreign currency risk management Transactions in foreign currencies expose the Group to foreign currency risk. The foreign currency denominated assets and liabilities as monetary and non-monetary items are below: USD EQUIVALENT TL EUR JPY CHF OTHER (**) 1.Trade Receivables 1,194 236 225 12 20 701 2a.Monetary Financial Assets 6,056 5,131 851 15 10 49 2b.Non Monetary Financial Assets - - - - - - 3.Other 977 584 155 4 7 227 4.Current Assets (1+2+3) 8,227 5,951 1,231 31 37 977 5.Trade Receivables 8 - 8 - - - 6a.Monetary Financial Assets 867 398 467 - - 2 6b.Non Monetary Financial Assets - - - - - - 7.Other 1,128 535 593 - - - 8.Non Current Assets (5+6+7) 2,003 933 1,068 - - 2 9.Total Assets (4+8) 10,230 6,884 2,299 31 37 979 10.Trade Payables 1,303 834 381 7 5 76 11.Financial Liabilities (*) 3,277 57 2,771 232 99 118 12a.Other Liabilities, Monetary 1,041 803 144 4 4 86 12b.Other Liabilities, Non Monetary - - - - - - 13.Current Liabilities (10+11+12) 5,621 1,694 3,296 243 108 280 14.Trade Payables - - - - - - 15.Financial Liabilities (*) 11,556 97 5,615 2,884 1,093 1,867 16a.Other Liabilities, Monetary 294 294 - - - - 16b.Other Liabilities, Non Monetary - - - - - - 17.Non Current Liabilities (14+15+16) 11,850 391 5,615 2,884 1,093 1,867 18.Total Liabilities (13+17) 17,471 2,085 8,911 3,127 1,201 2,147 19.Net asset / liability position of off- balance sheet derivatives (19a-19b) 1,201 1,579 (325) - - (53) 19a.Off-balance sheet foreign currency derivative assets 5,128 4,771 357 - - - 19b.Off-balance sheet foreign currency derivative liabilities 3,927 3,192 682 - - 53 20.Net foreign currency asset / (liability) position (9-18+19) (6,040) 6,378 (6,937) (3,096) (1,164) (1,221) 21.Net foreign currency asset / liability position of monetary items (IFRS 7.B23) (=1+2a+5+6a-10-11-12a-14-15-16a) (9,346) 3,680 (7,360) (3,100) (1,171) (1,395) 22.Fair value of foreign currency hedged financial assets - - - - - - 23.Hedged foreign currency assets - - - - - - 24.Hedged foreign currency liabilities 10,997 - 6,227 1,592 1,187 1,991 30 September 2026 (*) The Group’s net open foreign currency position arises from long -term borrowings denominated in Euro, Japanese Yen and Swiss Franc, obtained to fund its investments. The Group mitigates the foreign exchange risk arising from long -term borrowings used to finance its aircraft investments through highly probable revenues denominated in the same currencies. As of 30 September 2026, the USD equivalent of the borrowings within this scope amounted to USD 10,997. (**) The amount of Chinese yuan in total assets is USD 126, in total liabilities is USD 1,991, in the hedged foreign currency liabilities is USD 1,991.
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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 Nine-Month Period Ended 30 September 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) 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 (*) The Group’s net open foreign currency position arises from long -term borrowings denominated in Euro, Japanese Yen and Swiss Franc, obtained to fund its investments. The Group mitigates the foreign exchange risk arising from long -term borrowings used to finance its aircraft investments through highly probable revenues denominated in the same currencies. As of 31 December 2025, the USD equivalent of the borrowings within this scope amounted to USD 10,292. (**) The amount of Chinese yuan in total 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 Nine-Month Period Ended 30 September 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 The Group is exposed to foreign exchange risk primarily from TL, EUR, JPY and CHF. The following table details the Group’s sensitivity to a 10% increase and decrease in TL, EUR, JPY and CHF against USD. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management and represents management’s assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated mon etary items and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the Group where the denomination of the loan is in a currency other than the currency of the lender or the borrower. A positive number indicates an increase in profit or loss with a same effect on equity. The Group accounted investment loans and aircraft financial liabilities in scope of cash flow hedge accounting and foreign exchange income/expense arising from these loans and liabilities are recognized in equity. 10% increase and decrease effect of foreign exchange rates are calculated with the same method and the calculated foreign exchange gains/losses are presented as hedged portion in the foreign exchange sensitivity table. Furthermore, the hedged portion of foreign exchange gains/losses via forwards and cross currency swap transactions is classified as the amount hedged against USD in the statement of exchange rate sensitivity analysis. 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 638 (638) - - 2- Part hedged from TL risk (-) - - - - 3- TL net effect (1+2) 638 (638) - - 4- Euro net asset / liability (694) 694 (623) 623 5- Part hedged from Euro risk (-) 623 (623) - - 6- Euro net effect (4+5) (71) 71 (623) 623 7- JPY net asset / liability (310) 310 (159) 159 8- Part hedged from JPY risk (-) 159 (159) - - 9- JPY net effect (7+8) (151) 151 (159) 159 10- CHF net asset / liability (116) 116 (119) 119 11- Part hedged from CHF risk (-) 119 (119) - - 12- CHF net effect (10+11) 3 (3) (119) 119 13- Other foreign currency net asset / liability (122) 122 (199) 199 14- Part hedged other foreign currency risk (-) 199 (199) - - 15- Other foreign currency net effect (13+14) 77 (77) (199) 199 TOTAL (3 + 6 + 9 + 12 + 15) 496 (496) (1,100) 1,100 30 September 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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 58 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
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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 Nine-Month Period Ended 30 September 2026 (All amounts are expressed in Million US Dollars (USD) unless otherwise stated.) 59 29. GOVERNMENT GRANTS AND INCENTIVES Incentive certificates dated 28 December 2010, 15 June 2012, 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 the Ministry of Industry and Technology for investment of aircraft. These certificates provide the Group with certain advantages 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 USD 2,043 that may arise in future periods upon the disposal of the revalued fixed assets can be offset against government incentive receivables that have not yet been recognized in the financial statements and remain unused. As of 30 September 2026 , the Group has discounts and exemptions amounting to USD 5,663 that it can benefit from in the foreseeable future ( 30 September 2025: USD 3,963). For the period 1 January - 30 September 2026, USD 170 of this tax advantage has been used (30 September 2025: USD 567). • 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 t o changes in the exchange rate, DPI -PPI ratio and other economic data that affect the use of investment incentives, as well as operational income/expenses that are likely to occur, no change is expected in the 1-10 years period of use. 30. EVENTS AFTER THE REPORTING PERIOD None.