Pegasus Hava Tasimaciligi Anonim SirketiBIST: PGSUS

3/2026 TFRS Financial Statements

May 11, 2026 at 11:30 PM UTC · Issued by Pegasus Hava Tasimaciligi Anonim Sirketi

(CONVENIENCE TRANSLATION OF

THE REPORT AND FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)

PEGASUS HAVA TAŞIMACILIĞI ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD ENDED

31 MARCH 2026

INDEX PAGE INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 1-2 INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER ........ COMPREHENSIVE INCOME ........................................................................................................................... 3 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 4-5 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS........................................ 6 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 7-43

NOTE 1 ORGANIZATION AND OPERATIONS OF THE GROUP ................................................................... 7

NOTE 2 BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS 7-12

NOTE 3 INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD ............................................ 13

NOTE 4 SEGMENT REPORTING ....................................................................................................................... 14

NOTE 5 RELATED PARTY TRANSACTIONS 14-15

NOTE 6 TRADE RECEIVABLES AND PAYABLES OTHER RECEIVABLES 15-16

NOTE 7 PREPAYMENTS, DEFERRED INCOME AND CONTRACT LIABILITIES ...................................... 17

NOTE 8 PROPERTY AND EQUIPMENT 18-19

NOTE 9 INTANGIBLE ASSETS .......................................................................................................................... 20

NOTE 10 RIGHT OF USE ASSETS 20-21

NOTE 11 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES 21-22

NOTE 12 COMMITMENTS. 22-24

NOTE 13 EXPENSES BY NATURE ...................................................................................................................... 25

NOTE 14 SHAREHOLDERS' EQUITY ................................................................................................................. 25

NOTE 15 REVENUE AND COST OF SALES ....................................................................................................... 26

NOTE 16 GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES...... 27

NOTE 17 OTHER OPERATING INCOME AND EXPENSES .............................................................................. 28

NOTE 18 INCOME AND EXPENSES FROM INVESTING ACTIVITIES........................................................... 28

NOTE 19 FINANCIAL INCOME AND EXPENSES ............................................................................................. 29

NOTE 20 EARNINGS PER SHARE ....................................................................................................................... 29

NOTE 21 DERIVATIVE FINANCIAL INSTRUMENTS ...................................................................................... 30

NOTE 22 FINANCIAL INSTRUMENTS 30-34

NOTE 23 NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS 34-37

NOTE 24 FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES) 38-41

NOTE 25 EVENTS AFTER REPORTING PERIOD .............................................................................................. 41

NOTE 26 INCOME TAX EXPENSE ...................................................................................................................... 42

NOTE 27 EXPLANATIONS RELATED TO STATEMENT OF CASH FLOW.................................................... 43

APPENDIX - EURO SELECTED NOTES 44

	Current Period (Not Reviewed) TL 31 March	Prior Period (Audited) TL 31 December	(*) EUR 31 March	(*) EUR 31 December
	Notes 2026	2025	2026	2025
ASSETS
Current assets	92.668.869	90.234.822	1.816.194	1.788.485
Cash and cash equivalents	27 56.606.949	54.845.603	1.109.427	1.087.059
Financial assets	22 12.724.577	16.981.098	249.386	336.571
Trade receivables	6 4.110.371	3.676.783	80.557	72.875
Trade receivables from third parties	4.110.371	3.676.783	80.557	72.875
Other receivables	6 310.591	1.427.790	6.087	28.299
Other receivables from third parties	310.591	1.427.790	6.087	28.299
Derivative financial instruments	21 4.404.925	-	86.331	-
Inventories	2.451.052	2.314.444	48.038	45.873
Prepaid expenses	7 11.429.761	10.416.927	224.009	206.467
Current income tax assets	23.033	11.643	451	231
Other current assets	607.610	560.534	11.908	11.110
Non-Current assets	328.447.549	319.933.390	6.437.171	6.341.192
Financial assets	22 9.067.844	6.965.141	177.719	138.052
Other receivables	6 8.091.174	7.802.796	158.577	154.654
Other receivables from third parties	8.091.174	7.802.796	158.577	154.654
Derivative financial instruments	21 1.053.664	-	20.651	-
Investments accounted by using the equity method	3 1.143.725	1.076.770	22.416	21.342
Property and equipment	8 27.027.555	25.866.565	529.707	512.684
Intangible assets	9 2.063.466	2.024.529	40.441	40.127
Right of use assets	10 224.164.257	220.843.451	4.393.345	4.377.194
Prepaid expenses	7 36.054.277	34.663.854	706.620	687.050
Deferred tax assets	19.781.587	20.690.284	387.695	410.089
TOTAL ASSETS	421.116.418	410.168.212	8.253.365	8.129.677

(*) The functional currency of the Company is Euro. However, the presentation currency is determined as Turkish Lira. See Note 2.1 for the conversion of Euro and Turkish Lira amounts.

	Current Period (Not Reviewed) TL 31 March	Prior Period (Audited) TL 31 December	(*) EUR 31 March	(*) EUR 31 December
	Notes 2026	2025	2026	2025
LIABILITIES
Current liabilities	95.675.454	88.019.783	1.875.122	1.744.583
Short term borrowings	22 22.579.154	21.382.991	442.524	423.818
Short term portion of long term borrowings	22 2.683.694	2.118.530	52.597	41.990
Short term portion of long term lease liabilities	22 23.385.627	23.420.791	458.330	464.208
Trade payables	6 14.292.878	14.553.823	280.123	288.462
Trade payables to related parties	5 86.031	71.950	1.686	1.426
Trade payables to third parties	14.206.847	14.481.873	278.437	287.036
Employee benefit obligations	2.248.874	847.998	44.075	16.808
Other payables	6 6.150.447	331.241	120.541	6.565
Other payables to third parties	6.150.447	331.241	120.541	6.565
Contract liabilities	7 17.454.879	16.868.830	342.094	334.346
Derivative financial instruments	21 -	1.437.305	-	28.488
Deferred income	7 2.836.539	2.844.291	55.593	56.375
Short term provisions	4.043.362	4.213.983	79.245	83.523
Short term provisions for employee benefits	2.657.054	2.498.628	52.075	49.524
Other short term provisions	1.386.308	1.715.355	27.170	33.999
Non-Current liabilities	209.693.067	205.294.557	4.109.726	4.069.010
Long term borrowings	22 26.043.826	25.185.679	510.427	499.189
Long term lease liabilities	22 164.173.880	161.076.800	3.217.607	3.192.598
Derivative financial instruments	21 -	273.798	-	5.427
Deferred income	10.276.635	10.137.043	201.409	200.920
Long term provisions	9.198.726	8.621.237	180.283	170.876
Long term provisions for employee benefits	1.237.445	1.251.808	24.252	24.811
Other long term provisions	7.961.281	7.369.429	156.031	146.065
SHAREHOLDERS' EQUITY	115.747.897	116.853.872	2.268.517	2.316.084
Paid-in share capital	14 500.000	500.000	230.038	230.038
Share premiums on capital stock Other comprehensive income/expense not to be reclassified to profit or loss	57.987	57.987	24.595	24.595
Actuarial losses on defined benefit plans	(181.529)	(234.408)	(3.558)	(4.646)
Currency translation differences	65.316.022	64.037.913	-	-
Other comprehensive income/expense to be reclassified to profit or loss
Currency translation differences	372.976	341.629	7.311	6.771
Hedge fund	4.093.941	(1.283.327)	80.236	(25.436)
Gain on financial assets measured at fair value	(14.697)	72.527	(288)	1.438
Restricted profit reserves	20.460	20.460	4.047	4.047
Retained earnings	53.341.091	39.590.872	2.079.277	1.778.077
Net income / (loss) for the period	(7.758.354)	13.750.219	(153.141)	301.200
TOTAL LIABILITIES AND EQUITY	421.116.418	410.168.212	8.253.365	8.129.677

(*) The functional currency of the Company is Euro. However, the presentation currency is determined as Turkish Lira. See Note 2.1 for the conversion of Euro and Turkish Lira amounts.

		Current Period (Not Reviewed) 1 January-	Prior Period (Not Reviewed) 1 January-	(*) EUR 1 January-	(*) EUR 1 January-
Profit or loss	Notes	31 March 2026	31 March 2025	31 March 2026	31 March 2025
Sales	15	32.760.718	23.587.573	641.875	621.660
Cost of sales (-)	15	(35.889.546)	(24.433.763)	(703.678)	(635.773)
Gross profit / (loss)		(3.128.828)	(846.190)	(61.803)	(14.113)
General administrative expenses (-)	16	(1.556.616)	(893.331)	(30.611)	(23.966)
Marketing expenses (-)	16	(815.389)	(656.461)	(15.900)	(16.693)
Other operating income	17	883.059	11.990	17.292	295
Other operating expenses (-)	17	(106.836)	(1.521.844)	(2.010)	(39.809)
Operating profit / (loss)		(4.724.610)	(3.905.836)	(93.032)	(94.286)
Income from investing activities	18	374.362	1.136.085	7.300	28.186
Expenses from investing activities (-)	18	(37.721)	(71.816)	(739)	(1.764)
Share of investments income accounted for using the equity method	3	28.637	22.613	561	594
Operating profit / (loss) before financial expense		(4.359.332)	(2.818.954)	(85.910)	(67.270)
Financial income	19	805.443	2.593.007	15.778	67.963
Financial expense (-)	19	(4.848.841)	(2.649.791)	(95.627)	(68.903)
Profit / (loss) before tax		(8.402.730)	(2.875.738)	(165.759)	(68.210)
Tax income / (expense)		644.376	241.119	12.618	6.336
Deferred tax income / (expense)	26	644.376	241.119	12.618	6.336
Profit / (loss) for the period		(7.758.354)	(2.634.619)	(153.141)	(61.874)
Income / (loss) per share (TL) / (EUR) (full amount)	20	(15,52)	(5,27)	(0,31)	(0,12)
Other comprehensive income
Items not to be reclassified to profit or loss Actuarial (losses) / gains on defined benefit plans		70.505	(24.806)	1.451	(57)
Deferred tax effect		(17.626)	6.202	(363)	14
Currency translation differences Items to be reclassified to profit or loss Currency translation differences		1.278.109 31.347	8.035.597 176.096	- 539	- (39)
Gain on financial assets measured at fair value		(116.299)	(51.315)	(2.301)	(1.496)
Cash flow hedge		7.169.692	(38.902)	140.896	(468)
Deferred tax effect		(1.763.349)	22.554	(34.648)	491
Other comprehensive income / (expense)		6.652.379	8.125.426	105.574	(1.555)
Total comprehensive income / (expense)		(1.105.975)	5.490.807	(47.567)	(63.429)

(*)The functional currency of the Company is Euro. However, the presentation currency is determined as Turkish Lira. See Note 2.1 for the conversion of Euro and Turkish Lira amounts.

The accompanying notes form an integral part of these condensed consolidated financial statements.

				Other comprehensive income items not to be reclassified to profit or loss		Other comprehensive income items to be reclassified to profit or loss				Retained earnings
		Paid in share capital	Share premiums on capital stock	Actuarial gains / (losses) on defined benefit plans	Currency translation differences	Currency translation differences	Hedge reserve	Gain on financial assets measured at fair value	Restricted profit reserves	Retained earnings	Net profit / (loss) for the year	Shareholders' equity
As at 1 January 2025	TL	500.000	57.987	(156.637)	34.667.185	310.534	(138.062)	66.755	20.460	26.305.434	13.285.438	74.919.094
Transfers	TL	-	-	-	-	-	-	-	-	13.285.438	(13.285.438)	-
Net profit / (loss) for the period	TL	-	-	-	-	-	-	-	-	-	(2.634.619)	(2.634.619)
Other comprehensive income / (expense)	TL	-	-	(18.605)	8.035.597	176.096	(29.176)	(38.486)	-	-	-	8.125.426
As at 31 March 2025	TL	500.000	57.987	(175.242)	42.702.782	486.630	(167.238)	28.269	20.460	39.590.872	(2.634.619)	80.409.901
As at 1 January 2026	TL	500.000	57.987	(234.408)	64.037.913	341.629	(1.283.327)	72.527	20.460	39.590.872	13.750.219	116.853.872
Transfers	TL	-	-	-	-	-	-	-	-	13.750.219	(13.750.219)	-
Net profit / (loss) for the period	TL	-	-	-	-	-	-	-	-	-	(7.758.354)	(7.758.354)
Other comprehensive income / (expense)	TL	-	-	52.879	1.278.109	31.347	5.377.268	(87.224)	-	-	-	6.652.379
As at 31 March 2026	TL	500.000	57.987	(181.529)	65.316.022	372.976	4.093.941	(14.697)	20.460	53.341.091	(7.758.354)	115.747.897

The accompanying notes form an integral part of these condensed consolidated financial statements.

				Other comprehensive income items not to be reclassified to profit or loss	Other comprehensive income items to be reclassified to profit or loss				Retained earnings
		Paid in share capital	Share premiums on capital stock	Actuarial gains / (losses) on defined benefit plans	Currency translation differences	Hedge reserve	Gain on financial assets measured at fair value	Restricted profit reserves	Retained earnings	Net profit / (loss) for the year	Shareholders' equity
As at 1 January 2025	EUR	230.038	24.595	(4.263)	8.452	(3.758)	1.817	4.047	1.416.584	361.493	2.039.005
Transfers	EUR	-	-	-	-	-	-	-	361.493	(361.493)	-
Net profit / (loss) for the period	EUR	-	-	-	-	-	-	-	-	(61.874)	(61.874)
Other comprehensive income / (expense)	EUR	-	-	(42)	(40)	(351)	(1.122)	-	-	-	(1.555)
As at 31 March 2025	EUR	230.038	24.595	(4.305)	8.412	(4.109)	695	4.047	1.778.077	(61.874)	1.975.576
As at 1 January 2026	EUR	230.038	24.595	(4.646)	6.771	(25.436)	1.438	4.047	1.778.077	301.200	2.316.084
Transfers	EUR	-	-	-	-	-	-	-	301.200	(301.200)	-
Net profit / (loss) for the period	EUR	-	-	-	-	-	-	-	-	(153.141)	(153.141)
Other comprehensive income / (expense)	EUR	-	-	1.088	540	105.672	(1.726)	-	-	-	105.574
As at 31 March 2026	EUR	230.038	24.595	(3.558)	7.311	80.236	(288)	4.047	2.079.277	(153.141)	2.268.517

The accompanying notes form an integral part of these condensed consolidated financial statements.

	Current Period (Not Reviewed) TL 1 January-	Prior Period (Not Reviewed) TL 1 January-	(*) EUR 1 January-	(*) EUR 1 January-
Notes	31 March 2026	31 March 2025	31 March 2026	31 March 2025
A. CASH FLOWS FROM OPERATING ACTIVITIES
Income / (loss) for the period	(7.758.354)	(2.634.619)	(153.141)	(61.874)
Adjustments to reconcile the income / (loss)
Depreciation and amortization 8-9-10	5.676.788	3.699.991	111.161	97.226
Adjustments related with impairments	37.697	58.654	739	1.418
Provision for doubtful receivable	(24)	(13.162)	-	(346)
Adjustments related with financial investment impairments	37.721	71.816	739	1.764
Adjustments related with provisions	260.826	618.594	5.107	16.255
Provision for employee benefits	234.951	512.809	4.601	13.475
Legal provision	25.875	105.785	506	2.780
Interest and commission income	1.959.042	1.072.207	39.064	28.910
Adjustments related with fair value expense (income)	116.299	51.315	2.279	1.261
Adjustments related with fair value expense (income)
of financial assets	116.299	51.315	2.279	1.261
Gain on equity investments accounted for
using the equity method 3	(28.637)	(22.613)	(561)	(594)
Current tax (income)/expense	(644.376)	(241.119)	(12.618)	(6.336)
Other provisions related with investing
or financing activities	(608)	(135.126)	(12)	(3.169)
Changes in working capital
Increase in trade receivables	(392.341)	94.839	(7.683)	2.492
Increase in other receivables, prepayments
and other assets	(221.689)	(3.174.450)	(4.341)	(83.416)
Increase in inventories	(110.537)	(4.336)	(2.165)	(114)
Increase in trade payables Increase in deferred income, other payables and	(425.853)	1.159.989	(8.339)	30.481
other current liabilities	6.474.132	4.774.491	126.747	125.129
Net cash generated from operating activities	4.942.389	5.317.817	96.237	147.669
Payment for the employee benefits provisions	(20.383)	(12.038)	(397)	(318)
Payment for other provisions	(1.284)	(31)	(25)	(1)
	4.920.722	5.305.748	95.815	147.350
B. CASH FLOWS FROM INVESTING ACTIVITIES
Net cash changes from acquisition and sale of debt instruments
of other entities	1.965.420	(3.092.648)	38.736	(80.352)
Net cash changes from purchase and
sale of property, equipment and intangible assets	(444.046)	462.696	(8.695)	13.419
Interest received from financial investment	397.531	287.478	7.883	8.302
Changes in cash advances and payables	(995.300)	(4.984.354)	(19.490)	(130.975)
Other cash changes (**)	624.975	(6.695.795)	12.238	(161.703)
	1.548.580	(14.022.623)	30.672	(351.309)
C. CASH FLOWS FROM FINANCING ACTIVITIES
Increase in borrowings	4.070.713	900.584	90.585	22.850
Repayment of borrowings	(2.819.961)	(3.569.132)	(55.444)	(116.721)
Repayment of principal in lease liabilities	(5.696.221)	(3.788.171)	(111.542)	(99.543)
Interest and commission paid	(3.659.814)	(2.099.863)	(72.681)	(58.500)
Interest received	801.318	118.214	15.691	3.106
	(7.303.965)	(8.438.368)	(133.391)	(248.808)
NET DECREASE IN CASH AND CASH EQUIVALENTS
BEFORE TRANSLATION EFFECT (A+B+C)	(834.663)	(17.155.243)	(6.904)	(452.767)
D. TRANSLATION DIFFERENCES EFFECT ON CASH AND CASH EQUIVALENTS
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D)	2.596.009	2.137.850	29.272	(38.652)
E. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	1.761.346	(15.017.393)	22.368	(491.419)
AT THE BEGINNING OF THE PERIOD 27	54.845.603	46.258.554	1.087.059	1.258.979
AT THE END OF THE PERIOD (A+B+C+D+E) 27	56.606.949	31.241.161	1.109.427	767.560

(*)The functional currency of the Company is Euro. However, the presentation currency is determined as Turkish Lira. See Note 2.1 for the conversion of Euro and Turkish Lira amounts.

(**) The change in time deposits with a maturity of more than three months, classified as financial investments, has been presented.

The accompanying notes form an integral part of these condensed consolidated financial statements.

NOTE 1 - ORGANIZATION AND OPERATIONS OF THE GROUP

Pegasus Hava Taşımacılığı A.Ş. (the "Company" or "Pegasus") and its subsidiaries (together "the Group") is a low cost airline company. The Group operates under a low cost business model and employs low cost airline business practices which focus on providing affordable, reliable and simple service.

The shareholders and ownership of the Company as of 31 March 2026 and 31 December 2025 are as follows:

	31 March 2026	31 December 2025
Esas Holding A.Ş. ("Esas Holding")	52,81%	52,81%
Publicly held	45,37%	45,37%
Sabancı Family Members	1,82%	1,82%
Total	100,00%	100,00%

Shares of the Company have been started to be traded in İstanbul Stock Exchange since 26 April 2013,

after the book building between the dates of 18-19 April 2013.

The Group's total number of full time employees as of 31 Mart 2026 is 9.774 (31 December 2025: 9.260). The address of its principal office is Aeropark Yenişehir Mah. Osmanlı Bulvarı No: 11/A Kurtkoy-Pendik İstanbul.

Approval of Financial Statements

The interim condensed consolidated financial statements of the Company and its subsidiaries for the three month ended 31 March 2026 were authorised for issue in accordance with a resolution of the Board of Directors on 11 May 2026.

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS 2.1 Basis of Presentation Statement of Compliance with TAS

The Company and its subsidiaries registered in Türkiye maintain their books of account and prepare their statutory financial statements in accordance with accounting principles in the Turkish Commercial Code and Tax Legislation.

The accompanying condensed consolidated financial statements are prepared in accordance with the requirements of Capital Markets Board ("CMB") Communiqué Serial II, No: 14.1 "Basis of Financial Reporting in Capital Markets", which were published in the Official Gazette No:28676 on 13 June 2013. The accompanying financial statements are prepared based on the Turkish Financial Reporting Standards and interpretations ("TFRS") that have been put into effect by the Public Oversight Accounting and Auditing Standards Authority ("POA") under Article 5 of the Communiqué.

The interim condensed consolidated financial statements for the three month ended 31 March 2026 have been prepared in accordance with TAS 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2025.

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd) 2.1 Basis of Presentation (cont'd) Statement of Compliance with TFRS (cont'd)

The interim condensed consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values. The accompanying interim condensed consolidated financial statements are based on the statutory records, with adjustments and reclassifications for the purpose of fair presentation in accordance with Turkish Accounting Standards.

The interim condensed consolidated financial statements have been prepared on a going concern basis, with the assumption that the Group will benefit from its assets and fulfill its liabilities in the subsequent year and in the natural process of its business operations.

Functional and Presentation Currency

Although there is no prominent currency affecting revenue and cost of sales, the Company's functional currency is determined as Euro because; significant portion of scheduled flight revenues, which represents the Company's primary operations, is generated from European flights, Euro represents a significant component of the financial liabilities of the Company and management reports and budget enabling the Group's management to make executive decisions are prepared in Euro. The functional currency of the Company, its subsidiary and associates, other than Hitit Bilgisayar Hizmetleri A.Ş. ("Hitit Bilgisayar"), Pegasus Innovation Lab, Inc. ("PIL") and Pegasus Airlines Ventures LP ("PAV") is Euro. Hitit Bilgisayar's, PIL's and PAV's functional currency is US Dollar.

If the legal records are kept in a currency other than the functional currency, the financial statements are initially translated into the functional currency and then translated to the Group's presentation currency, Turkish Lira ("TL").

For the companies in Türkiye that maintain financial records in TL, currency translation from TL to the functional currency is made under the framework described below:

Monetary assets and liabilities have been converted to the functional currency with the Central Bank of Turkish Republic (CBRT) foreign exchange rate.
Non-monetary items have been converted into the functional currency at the exchange rates prevailing at the transaction date.
Profit or loss accounts have been converted into the functional currency using the exchange rates at the transaction date, except for depreciation expenses.
The capital is followed according to historical costs.

The translation differences resulting from the above mentioned conversions are recognized under financial income / expenses in the statement of profit or loss.

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

Basis of Presentation (cont'd) Functional and Presentation Currency (cont'd)
Presentation currency of the Group's financial statements is TL. Financial Statements have been translated from Euro to TL in accordance with the relevant provisions of TAS 21 ("The Effects of Changes in Foreign Exchange Rates") as follows:
- Assets and liabilities are translated using the Central Bank of the Republic of Türkiye ("TCMB")
  Euro rate prevailing at the reporting date,
- Incomes are converted from Euros to TL using the monthly average exchange rates and expense items at the registered exchange rates on the relevant transaction date.

Translation gains or losses arising from the translations stated above are presented as foreign currency translation reserve under equity. Share capital amount, representing the nominal share capital of the Company, all other equity items are presented in historic TL terms where all translation gains or losses in relation to these balances are accounted under foreign currency translation reserve.

Financial Reporting in Hyperinflationary Economies

In accordance with the POA's announcement dated 23 November 2023, companies applying Turkish Financial Reporting Standards are required to present their financial statements for the annual reporting periods ending on or after 31 December 2023, adjusted for the effects of inflation in accordance with the relevant accounting principles in Turkish Accounting Standard 29 "Financial Reporting in Hyperinflationary Economies" (TAS 29). Since the Company's functional currency is Euro as of the reporting date, there is no need to make any adjustments within the scope of TAS 29 in its financial statements to be prepared in accordance with TFRS. However, the financial statements as of 31 December 2024 are prepared in accordance with the Tax Law and have been subject to inflation correction in accordance with the legislation. As of 31 December 2025 and 31 March 2026, inflation accounting has not been applied.

Euro Amounts in the Consolidated Financial Statements

The Euro amounts presented on the face of interim condensed consolidated financial statements refer to the original Euro (functional currency) denomined interim condensed consolidated financial statements as described under the Functional and Presentation Currency section above.

Comparative Information and Reclassification of Prior Period Financial Statements

Condensed consolidated financial statements of Group are prepared in comparison to prior period in order to identify financial position and performance trends. In order to maintain consistency with current period condensed consolidated financial statements, comparative information is reclassified and significant changes are disclosed if necessary. In the current period, the Group has made several reclassifications in the prior period consolidated financial statements in order to maintain consistency with current year condensed consolidated financial statements. There is no effect of these reclassifications in the prior period equity and statement of profit or loss. The nature, amount and reasons for each of the reclassifications are described below:

In the statement of cash flows as of 31 March 2025, the amount of TL 1.248.285 presented under cash flows from operating activities has been reclassified and presented under translation differences effect on cash and cash equivalents

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

Basis of Presentation (cont'd) Basis of Consolidation

The following table illustrates the condensed consolidated subsidiaries and the Group's ownership percentage in these subsidiaries as of 31 March 2026 and 31 December 2025:

31 March	31 December	registration
2026	2025	and operation
100%	100%	Türkiye
100%	100%	USA
100%	100%	USA
100%	100%	Netherlands

Ownership rate Country of

Name of the company Principal activity

Pegasus Havacılık

Teknolojileri ve Ticaret A.Ş. Pegasus Airlines Innovation Lab, Inc.

Pegasus Airlines Ventures LP

Pegasus Europe B.V.

("PEU")

Simulator technical support and maintenance

Technology Investment Management

Technology - R&D

Acquisition and Management of Foreign Equity Investments

The following table illustrates the affiliates and joint ventures then indicates the Group's ownership percentage in these joint ventures as of 31 March 2026, 31 December 2025:

Ownership rate Country of

31 March 31 December Ownership registration and

Name of the Company Principal activity

2026

2025

type

operation

Hitit Bilgisayar Hizmetleri

A.Ş.

Information

system solutions 36,20% 36,20%

Joint

venture Türkiye

Changes in Accounting Estimates
Changes in accounting estimates are applied prospectively. If the change is effective for a specific period, it impacts only that period. If they relates to future periods, they are recognized prospectively both in the current period and in the future period. Significant errors identified by the Group in the accounting estimates are applied retrospectively and prior period financial statements are restated. The Group has not made any changes in accounting estimates in the current reporting period.
NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)
New and Amended Turkish Financial Reporting Standards

Amendments that are mandatorily effective from 2026
Amendments to TFRS 9 and TFRS 7 Classification and Measurement of Financial Instruments
Amendments to TFRS 9 and TFRS 7 Power Purchase Arrangements
Annual Improvements Annual Improvements to TFRSs - Volume 11
Amendments to TFRS 9 and TFRS 7 Classification and Measurement of Financial Instruments
The amendments address matters identified during the post-implementation review of the classification and measurement requirements of TFRS 9 Financial Instruments. Amendments are effective from annual reporting periods beginning on or after 1 January 2026.
Amendments to TFRS 9 and TFRS 7 Power Purchase Arrangements
The amendments aim at enabling entities to include information in their financial statements that in the IASB's view more faithfully represents contracts referencing nature-dependent electricity. Amendments are effective from annual reporting periods beginning on or after 1 January 2026.
Annual Improvements to TFRSs - Volume 11
The pronouncement comprises the following amendments:
- TFRS 1: Hedge accounting by a first-time adopter
- TFRS 7: Gain or loss on derecognition
- TFRS 7: Disclosure of deferred difference between fair value and transaction price
- TFRS 7: Introduction and credit risk disclosures
- TFRS 9: Lessee derecognition of lease liabilities
- TFRS 9: Transaction price
- TFRS 10: Determination of a 'de facto agent'
- TAS 7: Cost method
Amendments are effective from annual reporting periods beginning on or after 1 January 2026.
The aforementioned standard, amendments and improvements do not have any significant effect on the Group's consolidated financial position and performance.
New and revised TFRSs in issue but not yet effective

The Group has not yet adopted the following standards and amendments and interpretations to the existing standards:

TFRS 17 Insurance Contracts

Amendments to TFRS 17 Initial Application of TFRS 17 and TFRS 9 -

Comparative Information

TFRS 18 Presentation and Disclosures in Financial Statements

TFRS 19 Subsidiaries without Public Accountability: Disclosures

Amendments to TFRS 19 Subsidiaries without Public Accountability: Disclosures

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

New and Amended Turkish Financial Reporting Standards (cont'd)
b) New and revised TFRSs in issue but not yet effective
TFRS 17 Insurance Contracts
TFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts. TFRS 17 has been deferred for insurance, reinsurance and pension companies for a further year and will replace TFRS 4 Insurance Contracts on 1 January 2027.
Amendments to TFRS 17 Insurance Contracts and Initial Application of TFRS 17 and TFRS 9 Comparative Information
Amendments have been made in TFRS 17 in order to reduce the implementation costs, to explain the results and to facilitate the initial application.
The amendment permits entities that first apply TFRS 17 and TFRS 9 at the same time to present comparative information about a financial asset as if the classification and measurement requirements of TFRS 9 had been applied to that financial asset before. Amendments are effective with the first application of TFRS 17.
TFRS 18 Presentation and Disclosures in Financial Statements
TFRS 18 includes requirements for all entities applying TFRS for the presentation and disclosure of information in financial statements. This standard is effective from annual reporting periods beginning on or after 1 January 2027.
TFRS 19 Subsidiaries without Public Accountability: Disclosures
TFRS 19 specifies the disclosure requirements an eligible subsidiary is permitted to apply instead of the disclosure requirements in other IFRS Accounting Standards. This standard is effective from annual reporting periods beginning on or after 1 January 2027.
Amendments to TFRS 19 Subsidiaries without Public Accountability: Disclosures
The amendments cover new or amended Turkish Financial Reporting Standards that were not considered when TFRS 19 was first issued. Amendments are effective from annual reporting periods beginning on or after 1 January 2027.
The Group evaluates the effects of these standards, amendments and improvements on the consolidated financial statements.
Going Concern

The Group has prepared its financial statements in accordance with the going concern principle.

NOTE 3 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

The details of investments accounted for using the equity method are as follows:

	31 March 2026	31 December 2025
Joint ventures Hitit Bilgisayar	1.143.725	1.076.770
	1.143.725	1.076.770
Total profit from investments accounted for using the equity method is as follows:
	1 January- 31 March 2026	1 January- 31 March 2025
Hitit Bilgisayar	28.637	22.614
Net profit	28.637	22.613

The summarized financial information of the investment accounted by using the equity method is as follows:

Hitit Bilgisayar
	31 March 2026	31 December 2025
Current assets	935.029	903.513.291
Non-current assets	2.767.127	1.712.410.293
Current liabilities	(354.229)	(381.450.727)
Non-current liabilities	(203.374)	(138.932.230)
Net assets of joint venture	3.144.553	2.095.540.627
Group's ownership interest in the joint venture	36,20%	36,20%
Goodwill	5.397	5.212
Group's share in the net assets of the joint venture	1.143.725	1.076.770
	1 January- 31 March 2026	1 January- 31 March 2025
Revenue	494.930	343.319
Depreciation and amortisation expense	(107.367)	(72.130)
Interest income/(expense), net	27.473	4.928
Profit for the year	79.107	61.414
Group's weighted average ownership interest	36,20%	36,82%
Group's share in the net profit of the joint venture	28.637	22.614

NOTE 4 - SEGMENT REPORTING

The Group is managed as a single business unit that provides low fares airline-related services, including scheduled services, charter services, ancillary services and other services. The Group's Chief Operating Decision Maker is the Board of Directors. The resource allocation decisions are based on the entire network and the deployment of the entire aircraft fleet. The objective in making resource allocation decisions is to maximise condensed consolidated financial results, rather than results on individual routes within the network. All other assets and liabilities have been allocated to the Group's single reportable segment.

NOTE 5 - RELATED PARTY TRANSACTIONS

The ultimate parent and controlling party of the Group is Esas Holding. The Group has a number of operating and financial relationships with its shareholders and other entities owned by its shareholders (which will be referred to as "other related parties" below). The related party receivables and payables resulting from operating activities are generally not secured and interest free.

Balances with Related Parties:
1. Trade payables to related parties

	31 March 2026	31 December 2025
Balances with joint ventures: Hitit Bilgisayar	63.993	53.290
Balances with other related parties: Esasburda İnşaat Sanayi ve Ticaret A.Ş. ("Esasburda")	-	301
Ere Avm İnşaat A.Ş. ("Ere Avm")	22.038	18.359
	86.031	71.950
(ii) Significant Transactions with Related Parties:

Esasburda charges dues, electricity, water and heating expenses for the head office, which is disclosed

within "purchases of goods and services" section below.

The Group receives software and software support services from Hitit Bilgisayar that provides information system solutions for transportation industry.

The Group receives project consultancy services from Ere Avm İnşaat for the hangar project.

NOTE 5 - RELATED PARTY TRANSACTIONS (cont'd) a) Purchases of goods or services

	1 January- 31 March 2026	1 January- 31 March 2025
Transactions with joint ventures: Hitit Bilgisayar	119.502	92.086
Transactions with other related parties: Ere Avm	21.605	18.000
Esasburda	7.603	3.524
	148.710	113.610
(iii) Compensation of Key Management Personnel:

Key management personnel include members of the board of directors, general managers and assistant general managers. The remuneration of key management benefit during the period ended 31 March 2026 and 31 March 2025 are as follows:

1 January- 1 January- 31 March 2026 31 March 2025

Salaries and benefits 42.788 31.483

42.788 31.483

NOTE 6 - TRADE RECEIVABLES AND PAYABLES AND OTHER RECEIVABLES Short term trade receivables

The details of short term trade receivables as of 31 March 2026 and 31 December 2025 are as follows:

	31 March 2026	31 December 2025
Trade receivables	2.251.581	2.245.737
Credit card receivables	1.347.222	1.557.581
Income accruals	682.873	33.997
	4.281.676	3.837.315
Allowance for expected credit losses under TFRS 9	(171.305)	(160.532)
	4.110.371	3.676.783

The average collection period of trade receivables is approximately 23 days (31 December 2025: 18 days)

NOTE 6 - TRADE RECEIVABLES AND PAYABLES AND OTHER RECEIVABLES (cont'd) Short term trade payables

The details of short term trade payables as of 31 March 2026 and 31 December 2025 are as follows:

	31 March 2026	31 December 2025
Trade payables	5.894.441	8.185.584
Accrued direct operational costs	8.312.406	6.296.289
Trade payables to related parties (Note 5)	86.031	71.950
	14.292.878	14.553.823

The average payment period of trade payables is approximately 36 days (31 December 2025: 32 days).

Short term other receivables

The details of short term other receivables as of 31 March 2026 and 31 December 2025 are as follows:

	31 March 2026	31 December 2025
Deposits and guarantees given	58.136	1.156.920
Receivables from pilots for flight training	226.844	249.591
Receivables from tax office	14.010	14.010
Other receivables	11.601	7.269
	310.591	1.427.790
Long term other receivables

The details of long term other receivables as of 31 March 2026 and 31 December 2025 are as follows:

	31 March 2026	31 December 2025
Receivables from pilot trainings	2.339.500	2.180.764
Deposits given	2.087.500	2.047.610
Maintenance reserve contribution receivables	3.664.174	3.574.422
	8.091.174	7.802.796
Short term other payables	31 March 2026	31 December 2025
Taxes payables	120.697	157.780
Deposits received (*)	6.029.750	173.461
	6.150.447	331.241

(*) The amount of TL 5.652.566 in deposits received, consists of guarantees received from the banks regarding the valuation of derivative transactions.

NOTE 7 - PREPAYMENTS, DEFERRED INCOME AND PASSENGER FLIGHT LIABILITIES

The details of prepayments as of 31 March 2026 and 31 December 2025 are as follows:

Short term prepayments

	31 March 2026	31 December 2025
Advances on aircraft purchases	4.861.066	4.917.727
Advances to suppliers	5.072.987	4.036.276
Prepaid insurance expenses	862.811	956.672
Other prepaid expenses	632.897	506.252
	11.429.761	10.416.927
Long term prepayments	31 March 2026	31 December 2025
Advances on aircraft purchases	6.126.835	7.018.391
Prepaid maintenance expenses	29.773.295	27.569.632
Other prepaid expenses	154.147	75.831
	36.054.277	34.663.854

Deferred Income Contract Liabilities

The details of passenger flight liabilities as of 31 March 2026 and 31 December 2025 are as follows:

	31 March 2026	31 December 2025
Flight liability from ticket sales	11.744.279	11.018.519
Passenger airport fees received from customers (*)	3.539.185	3.842.072
Flight liability from flight points	2.171.415	2.008.239
	17.454.879	16.868.830

(*) Passenger airport fees received from customers is included in the ticket price, but it is not recognized as revenue when the flight carried out. The amount represents the costs to be paid to airport operators and authorities in cash.

Deferred Income (excluding contract liabilities) Short term deferred income

	31 March 2026	31 December 2025
Advances received from customers	1.504.312	1.504.603
Other deferred income	1.332.227	1.339.688
	2.836.539	2.844.291
Long term deferred income	31 March 2026	31 December 2025
Deferred income (*)	10.276.635	10.137.043
	10.276.635	10.137.043

(*) Long term deferred income represent discounts received in advance from supplier contracts.

NOTE 8 - PROPERTY AND EQUIPMENT

Components,

31 March 2026	Machinery and equipment	Motor vehicles	Furniture and fixtures	Leasehold improvements	spare engine and repairables	Owned Aircraft	Construction in progress	Total
Cost: Opening	1.898.243	1.603.895	2.394.094	697.618	21.495.860	9.860.220	3.874.073	41.824.003
Additions	63.361	23.146	70.673	-	917.208	-	433.256	1.507.644
Currency translation differences	21.406	18.113	27.005	7.887	242.230	111.475	43.423	471.539
Closing	1.983.010	1.645.154	2.491.772	705.505	22.655.298	9.971.695	4.350.752	43.803.186
Accumulated depreciation: Opening	(881.129)	(638.130)	(1.647.872)	(679.225)	(6.638.356)	(5.472.727)	-	(15.957.439)
Depreciation for the year	(33.257)	(42.103)	(45.411)	(1.308)	(392.286)	(123.973)	-	(638.338)
Currency translation differences	(9.932)	(7.178)	(18.591)	(7.678)	(74.710)	(61.765)	-	(179.854)
Closing	(924.318)	(687.411)	(1.711.874)	(688.211)	(7.105.352)	(5.658.465)	-	(16.775.631)
Net book value	1.058.692	957.743	779.898	17.294	15.549.946	4.313.230	4.350.752	27.027.555

NOTE 8 - PROPERTY AND EQUIPMENT (cont'd)

31 March 2025	Machinery and equipment	Motor vehicles	Furniture and fixtures	Leasehold improvements	Components, spare engine and repairables	Owned Aircraft	Construction in progress	Total
Cost:
Opening	1.303.702	1.010.293	1.512.662	507.848	13.723.562	10.513.995	346.274	28.918.336
Additions	10.040	49.847	48.916	-	1.548.790	-	74.015	1.731.608
Transfers (*)	-	-	-	-	(46.025)	-	(35.176)	(81.201)
Currency translation differences	141.170	112.324	166.389	54.720	1.584.344	1.132.869	40.011	3.231.827
Closing	1.454.912	1.172.464	1.727.967	562.568	16.810.671	11.646.864	425.124	33.800.570
Accumulated depreciation:
Opening	(554.684)	(373.012)	(1.082.434)	(490.834)	(3.761.139)	(5.351.401)	-	(11.613.504)
Depreciation for the year	(21.936)	(25.540)	(28.760)	(787)	(262.665)	(131.200)	-	(470.888)
Currency translation differences	(61.290)	(41.967)	(118.631)	(52.941)	(423.523)	(585.730)	-	(1.284.082)
Closing	(637.910)	(440.519)	(1.229.825)	(544.562)	(4.447.327)	(6.068.331)	-	(13.368.474)
Net book value	817.002	731.945	498.142	18.006	12.363.344	5.578.533	425.124	20.432.096

(*) Transfers at "components, spare engine and repairables" represent derecognition of components that are used as part of delivery maintenance provisions.

NOTE 9 - INTANGIBLE ASSETS
Software		31 March 2026			31 March 2025
Cost: Opening		4.546.607			2.361.587
Additions		160.608			288.449
Currency translation differences		51.263			274.516
Closing		4.758.478			2.924.552
Accumulated amortization: Opening		(2.522.078)			(1.478.045)
Amortization for the year		(144.742)			(83.852)
Currency translation differences		(28.192)			(165.088)
Closing		(2.695.012)			(1.726.985)
Net book value		2.063.466			1.197.567
NOTE 10 - RIGHT OF USE ASSETS
31 March 2026	Field Rental	Building	Aircraft	Other	Total
Cost: Opening	1.269.017	1.247.890	292.705.215	15.709	295.237.831
Additions	-	-	5.718.477	-	5.718.477
Currency translation differences	14.347	14.108	3.304.234	178	3.332.867
Closing	1.283.364	1.261.998	301.727.926	15.887	304.289.175
Accumulated depreciation: Opening	(827.210)	(51.183)	(73.500.279)	(15.709)	(74.394.381)
Depreciation for the period	(38.469)	(7.894)	(4.847.345)	-	(4.893.708)
Currency translation differences	(9.318)	(572)	(826.761)	(178)	(836.829)
Closing	(874.997)	(59.649)	(79.174.385)	(15.887)	(80.124.918)
Net book value	408.367	1.202.349	222.553.541	-	224.164.257

NOTE 10 - RIGHT OF USE ASSETS (cont'd)

31 March 2025	Field Rental	Building	Aircraft	Other	Total
Cost:
Opening	535.373	908.785	191.782.215	11.440	193.237.813
Additions	-	-	3.367.245	-	3.367.245
Disposals	-	-	(2.818.106)	-	(2.818.106)
Currency translation differences	57.686	97.920	20.702.472	1.233	20.859.311
Closing	593.059	1.006.705	213.033.826	12.673	214.646.263
Accumulated depreciation:
Opening	(490.171)	(14.555)	(39.422.098)	(11.440)	(39.938.264)
Depreciation for the period	(12.246)	(5.883)	(3.127.122)	-	(3.145.251)
Disposals	-	-	1.037.238	-	1.037.238
Currency translation differences	(53.667)	(1.977)	(4.410.741)	(1.233)	(4.467.618)
Closing	(556.084)	(22.415)	(45.922.723)	(12.673)	(46.513.895)
Net book value	36.975	984.290	167.111.103	-	168.132.368

NOTE 11 - PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

Litigation

The Group is involved in lawsuits and claims that have been filed against, the total amount of claims, excluding reserved rights for excess claims, litigation risks, and interest, is TL 134.305 as of 31 March 2026 (31 December 2025: TL 135.988). These lawsuits and fines have been evaluated by the Group's management and a litigation provision of TL 154.796 (31 December 2025: TL 130.205) has been provided against claims for which management believes it is probable it will be required to make a payment. Disputes arise from guest complaints, claims by former employees of the Group and a limited number of commercial disputes.

Tax Inspection

The Group's VAT transactions regarding loyalty card practices in year 2018 have been examined in 2020. The Company have been notified with a report stating "no subject to be examined have been found" in May 2021. However the report evaluation commission has objected this verdict and TL 1.781 of tax assessment has been declared to the Company. Against this tax assessment, the Company filed a tax lawsuit on September 6, 2021, the petition of the counter party was received on October 25, 2021 and the petition was answered on November 23, 2021. The 7th Tax Court of Istanbul decided to accept our case and reject all assessments on June 29, 2022, and the defendant Revenue Administration objected to the decision in August and submitted the petition of appeal to the Tax Court. The petition of appeal was notified to Company on September 28, 2022 and this petition answered within one month. Following the rejection of the opposite party's appeal, this time an appeal was made, and the defendant's appeal was served in April 2023. This petition was also answered by the Company within the time limit. The said lawsuit continues as of March 31, 2026. The Company has not recognized any provision in the consolidated financial statements in line with the opinions received from its lawyers regarding the aforementioned case.

NOTE 11 - PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont'd)

Passenger Service Fee

T&T Havalimanı İşletmeciliği İnşaat Sanayi ve Ticaret Şirketi Limited filed three lawsuits against the Company before North Cyprus Lefkoşa Court of First Instance with claims of Euro 766, Euro 989 and Euro 475, respectively. All three lawsuits act on same claims and the airports act no. 5/2013 whereby the plaintiff, as the operator of the Ercan Airport under North Cyprus Airports Services and Charges Law, claims Euro 15 (all amount) passenger service fee for each Turkish Army Staff member traveling on the Company flights for the period between March 2013 and August 2020. Turkish Army Staff departing from North Cyprus are subject to an exemption from this fee under the law. The plaintiff's argument is based on the assumption that the Company has not carried any Turkish Army Staff members in this period of time. The Court of First Instance merged the first two lawsuits and rendered a judgment against the Company for a total principal payment obligation of Euro 1.679. No decision has yet been issued regarding the third lawsuit. The Company is of the opinion that it is legally impossible to obtain the requested documents related to the transported passengers from the relevant public authorities, and that the responsibility for implementing the requested additional inspections lies with the operating plaintiff. A legal appeal process has been initiated against the unfavorable first-instance court decision. In prior reporting periods, no provisions were recognized in relation to these cases, as the claims were not supported by concrete evidence and were based on unreasonable assumptions. Following the Company's appeal, upon the approval of the first-instance court's decision as of April 18, 2025, the payment related to the first two consolidated case files, amounting to a principal of Euro 1.679, was made together with interest and a provision corresponding to the claimed amount has been recognized for the ongoing third lawsuit as of the end of the interim period ended March 31, 2026.

NOTE 12 - COMMITMENTS
Purchase Commitments	31 March 2026	31 December 2025
Commitments to purchase aircraft	1.272.803.409	1.243.208.945
	1.272.803.409	1.243.208.945

As of 31 March 2026, the Group holds the right to purchase 141 aircraft on firm order. In accordance with agreement the expected deliveries are 5 aircraft in 2026, 14 aircraft in 2027, 20 aircraft in 2028, 23 aircraft in

2029, 16 aircraft in 2030, 17 aircraft in 2031, 16 aircraft in 2032, 15 aircraft in 2033, 15 aircraft in 2034. The purchase commitments for these aircraft were calculated based on their list prices and actual purchase prices are typically lower than the list prices.

The Group has provided advances on aircraft purchases amounting to TL 10.987.901 (31 December 2025: TL 11.936.118). Of this amount, TL 4.861.066 is reclassified as short-term, and TL 6.126.835 is reclassified as long-term prepayments (31 December 2025: TL 4.917.727 is reclassified as short-term, TL 7.018.391 is reclassified as long-term prepayments).

NOTE 12 - COMMITMENTS (cont'd) Collaterals-Pledges-Mortgages("CPM")

The details of the CPMs given by the Group as of 31 March 2026 is as follows:

31 March 2026		TL TOTAL		USD		EUR		TL		Other
A. Total amounts of CPM given on behalf of its own legal entity
-Collateral		2.565.744		19.326		27.487		37.502		267.968
-Pledge		-		-		-		-		-
-Mortgage		-		-		-		-		-
B. Total amounts of CPM given on behalf of subsidiaries that are included in full consolidation
-Collateral	-		-		-		-		-
-Pledge	-		-		-		-		-
-Mortgage	-		-		-		-		-

C. Total amounts of CPM given in order to guarantee third parties debts for routine trade operations

-Collateral	-	-	-	-	-
-Pledge	-	-	-	-	-
-Mortgage	-	-	-	-	-

D. Total amounts of other CPM given

Total amount of CPM given on behalf of the Parent

-Collateral	-	-	-	-	-
-Pledge	-	-	-	-	-
-Mortgage	-	-	-	-	-

Total amount of CPM given on behalf of other group companies not covered in B and C

-Collateral	-	-	-	-	-
-Pledge	-	-	-	-	-
-Mortgage iii. Total amount of CPM given on behalf of third parties not covered in C	-	-	-	-	-
-Collateral	-	-	-	-	-
-Pledge	-	-	-	-	-
-Mortgage	-	-	-	-	-
	2.565.744	19.326	27.487	37.502	267.968

The CPMs given by the Group are consisted of collaterals given to airports and terminals operators, aircraft leasing companies and service suppliers.

The other CPMs (in the scope of item D) given by the Group constitute 0% of the Group's equity as of 31 March 2026.

NOTE 12 - COMMITMENTS (cont'd) Collaterals-Pledges-Mortgages("CPM") (cont'd)

The details of the CPMs given by the Group as of 31 December 2025 is as follows:

31 December 2025		TL TOTAL		USD		EUR		TL		Other
A. Total amounts of CPM given on behalf of its own legal entity
-Collateral		2.554.614		21.826		27.716		37.502		183.213
-Pledge		-		-		-		-		-
-Mortgage		-		-		-		-		-
B. Total amounts of CPM given on behalf of subsidiaries that are included in full consolidation
-Collateral	-		-		-		-		-
-Pledge	-		-		-		-		-
-Mortgage	-		-		-		-		-

C. Total amounts of CPM given in order to guarantee third parties debts for routine trade operations

-Collateral	-	-	-	-	-
-Pledge	-	-	-	-	-
-Mortgage	-	-	-	-	-

D. Total amounts of other CPM given

Total amount of CPM given on behalf of the Parent

-Collateral	-	-	-	-	-
-Pledge	-	-	-	-	-
-Mortgage	-	-	-	-	-

Total amount of CPM given on behalf of other group companies not covered in B and C

-Collateral	-	-	-	-	-
-Pledge	-	-	-	-	-
-Mortgage iii. Total amount of CPM given on behalf of third parties not covered in C	-	-	-	-	-
-Collateral	-	-	-	-	-
-Pledge	-	-	-	-	-
-Mortgage	-	-	-	-	-
	2.554.614	21.826	27.716	37.502	183.213

The CPMs given by the Group are consisted of collaterals given to airports and terminals operators, aircraft leasing companies and service suppliers.

The other CPMs (in the scope of item D) given by the Group constitute 0% of the Group's equity as of 31 December 2025.

NOTE 13 - EXPENSES BY NATURE

The details of expenses by nature for the years periods 31 March 2026 and 31 March 2025 are as follows:

	1 January- 31 March 2026	1 January- 31 March 2025
Jet fuel expenses	10.720.719	7.461.417
Personnel expenses	8.421.434	5.753.786
Depreciation and amortisation expenses	5.676.788	3.699.991
Handling and station fees	3.142.650	2.132.436
Navigation expenses	2.659.014	1.809.123
Maintenance expenses	1.956.604	1.105.917
Landing expenses	1.474.577	1.033.542
Passenger service and catering expenses	576.894	431.346
Advertising expenses	292.322	256.134
Commission expenses	184.564	172.904
Short term operational lease expenses	6.187	-
Other expenses	3.149.798	2.126.959
	38.261.551	25.983.555
NOTE 14 - SHAREHOLDERS' EQUITY

The Company's shareholding structure as of 31 March 2026 and 31 December 2025 are as follows:

31 March 2026 31 December 2025

Shareholders	(%)	TL	(%)	TL
Esas Holding	52,81	264.056	52,81	264.056
Publicly held	45,37	226.866	45,37	226.866
Emine Kamışlı	0,61	3.026	0,61	3.026
Ali İsmail Sabancı	0,61	3.026	0,61	3.026
Kazım Köseoğlu	0,30	1.513	0,30	1.513
Can Köseoğlu	0,30	1.513	0,30	1.513
TL historic capital	100,00	500.000	100,00	500.000
The Company's share	capital consists of 500.000.000	shares of par value	TL 1 (full	amount) each (31

December 2025: 500.000.000 shares).

NOTE 15 - REVENUE AND COST OF SALES

The details of revenue and cost of sales for the periods ended 31 March 2026 and 31 March 2025 are as follows:

Revenue:

	1 January- 31 March 2026	1 January- 31 March 2025
Scheduled flight and service revenue	32.490.522	23.331.999
International flight revenue	13.067.791	10.139.859
Domestic flight revenue	4.759.876	3.220.261
Service revenue	14.662.855	9.971.879
Charter flight and service revenue	22.214	131.095
Charter flight revenue	22.214	131.095

Other revenue 247.982 124.479

32.760.718 23.587.573

The Group's revenue is disaggregated into revenue from scheduled flights, revenue from chartered flights, and other revenues in accordance with the TFRS 15 "Revenue from Contracts with Customers" standard. However, although the Group does not consider service revenues within these disaggregated revenue items as a separate performance obligation, it presents additional information due to their frequent disclosure to investors and continuous review by the authorities empowered to make decisions regarding operations.

Geographical details of revenue from the scheduled flights are as follows:

	1 January- 31 March 2026	1 January- 31 March 2025
Europe	8.967.863	6.598.009
Domestic	4.759.876	3.220.261
Other	4.099.928	3.541.850
	17.827.667	13.360.120
Cost of sales:	1 January-	1 January-
	31 March 2026	31 March 2025
Jet fuel expenses	10.720.719	7.461.417
Personnel expenses	7.762.484	5.283.336
Depreciation and amortisation expenses	5.401.957	3.532.971
Handling and station fees	3.142.650	2.132.436
Navigation expenses	2.659.014	1.809.123
Maintenance expenses	1.956.604	1.105.917
Landing expenses	1.474.577	1.033.542
Passenger service and catering expenses	576.894	431.346
Insurance expenses	247.579	186.149
Short term lease expenses	6.187	-
Other expenses	1.940.881	1.457.526
	35.889.546	24.433.763

NOTE 16 - GENERAL ADMINISTRATIVE EXPENSES	EXPENSES AND SELLING	AND MARKETING
	1 January-	1 January-
	31 March 2026	31 March 2025
General administrative expenses	1.556.616	893.331
Marketing expenses	815.389	656.461
	2.372.005	1.549.792

The details of general administrative expenses and marketing expenses for the periods ended 31 March 2026 and 31 March 2025 are as follows (there are no research & development expenses in the periods ended in respective dates):

General administrative expenses:	1 January- 31 March 2026	1 January- 31 March 2025
Personnel expenses	484.808	374.531
IT expenses	383.200	221.005
Depreciation and amortisation expenses	219.865	133.616
Consultancy expenses	107.294	48.753
Office utility expenses	45.230	23.953
Legal and notary expenses	30.131	20.830
Communication expenses	28.648	19.942
Travel expenses	34.416	19.591
Training expenses	2.759	3.246
Other expenses	220.265	27.864
	1.556.616	893.331
Marketing expenses:	1 January-	1 January-
	31 March 2026	31 March 2025
Advertising expenses	292.322	256.134
Commission expenses	184.564	172.904
Personnel expenses	174.142	95.919
Call center expenses	67.170	70.536
Depreciation and amortisation expenses	54.966	33.404
Other expenses	42.225	27.564
	815.389	656.461

NOTE 17 - OTHER OPERATING INCOME AND EXPENSES

The details of other operating income and expenses for the periods ended 31 March 2026 and 31 March 2025 are as follows:

Other operating income:

	1 January- 31 March 2026	1 January- 31 March 2025
Foreign exchange gain from operating activities, net	883.059	-
Reversal of doubtful cash and cash equivalents	-	9.625
Reversal of trade receivable impairment	-	2.365
	883.059	11.990
Other operating expenses:	1 January-	1 January-
	31 March 2026	31 March 2025
Foreign exchange loss from operating activities, net	-	1.376.428
Legal provision and penalty expense	28.851	115.336
Doubtful receivable allowance expense	7.196	2.022
Cash and cash equivalents allowance expense	1.297	-
Donations	5.868	-
Other	52.851	28.058
	106.836	1.521.844

NOTE 18 - INCOME AND EXPENSES FROM INVESTING ACTIVITIES

The details of income from investing activities for the periods ended 31 March 2026 and 31 March 2025 are as follows:

Income from investing activities:

	1 January- 31 March 2026	1 January- 31 March 2025
Interest income from time deposits	29.779	572.882
Gain arising from aircraft sale	-	280.560
Interest income from eurobond	335.573	276.171
Gain from eurobond sales (*)	8.402	6.263
Other income	608	209
	374.362	1.136.085

(*) The amounts represents gains arising from the sale of financial investments that are carried at fair value through other comphensive income.

Expense from investing activities:

1 January-

31 March 2026

1 January-

31 March 2025

Financial investments allowance expense

37.721

71.816

37.721

71.816

NOTE 19 - FINANCIAL INCOME AND EXPENSES

The details of financial income and expenses for the periods ended 31 March 2026 and 31 March 2025 are as follows:

Financial income:	1 January- 31 March 2026	1 January- 31 March 2025
Foreign exchange gain, net	-	2.009.398
Interest income	805.443	583.609
	805.443	2.593.007
Financial expenses:	1 January-	1 January-
	31 March 2026	31 March 2025
Interest expense on leases	1.755.404	1.514.006
Interest expense on issued debt instruments	434.329	527.955
Commission and other expenses	423.371	390.664
Losses from derivative contracts	-	144.922
Interest expense on bank loans	516.733	72.244
Foreign exchange loss, net	1.719.004	-
	4.848.841	2.649.791
NOTE 20 - EARNINGS PER SHARE

Earnings per share disclosed in the condensed consolidated statements of income are determined by dividing the net income by the weighted number of shares that have been outstanding during the period concerned. Weighted average number of shares for 2025 and 2026 is calculated using the actual number of shares outstanding during the period, taking into consideration the actual date of capital increase.

Number of total shares and calculation of earnings per share at 31 March 2026 and 31 March 2025 are as follows:

	1 January- 31 March 2026	1 January- 31 March 2025
Net profit/(loss)	(7.758.354)	(2.634.619)
Weighted average number of shares issued in the year	500.000.000	500.000.000
Income per share (full amount)	(15,52)	(5,27)

NOTE 21 - DERIVATIVE FINANCIAL INSTRUMENTS Fair Value of Derivative Instruments

31 March 2026 31 December 2025

	Asset	Liability	Asset	Liability
Short term	4.404.925	-	-	1.437.305
Long term	1.053.664	-	-	273.798
	5.458.589	-	-	1.711.103
Explanations related to derivative instruments are disclosed in Note 24.
NOTE 22 - FINANCIAL INSTRUMENTS
Financial Assets
Short term			31 March 2026	31 December 2025
Financial investments measured at amortized cost			8.189.599	10.635.220
Financial assets recognized at fair value in shareholders' equity			2.442.218	3.688.963
Time deposit (*)			2.096.257	2.664.351
Allowance for credit risk adjustment under TFRS 9			(3.497)	(7.436)
			12.724.577	16.981.098
(*) The balance includes time deposits with original maturities between three months and one year.
Long term		31 March 2026		31 December 2025
Financial investments measured at amortized cost		9.159.760		7.016.539
Financial assets recognized at fair value in shareholders' equity		33.288		32.147
Allowance for credit risk adjustment under TFRS 9		(125.204)		(83.545)
		9.067.844		6.965.141
		31 March 2026		31 December 2025
Short term financial investments measured at amortized cost		8.189.599		10.635.220
Long term financial investments measured at amortized cost		9.159.760		7.016.539
		17.349.359		17.651.759
Financial investments accounted at amortized cost
		31 March 2026		31 December 2025
Government Debt Securities		5.587.219		5.836.660
Corporate Debt Securities		11.762.140		11.815.099
		17.349.359		17.651.759

The Group's fixed income securities are accounted at their amortized costs using the effective interest rate. These securities are denominated in Euros, US Dollars, Pounds, Turkish Liras and pay fixed interest every year and every six months.

NOTE 22 - FINANCIAL INSTRUMENTS (cont'd) Financial Assets

The weighted average coupon interest rates of existing Euro, US Dollar and Pounds financial investments that are measured at amortized cost as of 31 March 2026 and 31 December 2025 are as follows:

Weighted average

	Coupon Interest Rate (%)	FX Type	Asset Value TL
Government Debt Securities	7,3	US Dollar	3.229.901
Government Debt Securities	6,2	GBP	917.342
Government Debt Securities	35,9	TL	854.611
Government Debt Securities	5,2	EUR	585.365
Corporate Debt Securities	6,4	US Dollar	10.116.473
Corporate Debt Securities	5,9	EUR	1.337.279
Corporate Debt Securities	6,2	GBP	308.388
31 March 2026			17.349.359
	Weighted average Coupon Interest Rate (%)	FX Type	Asset Value TL
Government Debt Securities	7,4	US Dollar	4.327.924
Government Debt Securities	6,2	GBP	895.255
Government Debt Securities	37,5	TL	613.481
Corporate Debt Securities	6,5	US Dollar	10.211.180
Corporate Debt Securities	5,9	EUR	1.303.690
Corporate Debt Securities	6,2	GBP	300.229
31 December 2025			17.651.759

Financial investments at fair value through other comprehensive income

31 March 2026 31 December 2025

Government Debt Securities	1.646.187	2.908.561
Corporate Debt Securities	796.031	780.402
Private Equity Investments	33.288	32.147
	2.475.506	3.721.110

The coupon interest rates of the financial investments in US Dollars that are measured by their fair value and continues as of the reporting date are as follows.

Weighted average

	Coupon Interest Rate (%)	FX Type	Asset Value TL
Government Debt Securities	8,0	US Dollar	1.646.187
Corporate Debt Securities	7,2	US Dollar	796.031
31 March 2026			2.442.218
	Weighted average Coupon Interest Rate (%)	FX Type	Asset Value TL
Government Debt Securities	7,8	US Dollar	2.908.561
Corporate Debt Securities	7,4	US Dollar	780.402
31 December 2025			3.688.963

The financial investments at fair value through other comprehensive income is composed of bonds. These investments are denominated in US Dollars and pay fixed interest every year or every six months.

NOTE 22 - FINANCIAL INSTRUMENTS (cont'd) Financial Liabilities

The details of financial liabilities as of 31 March 2026 and 31 December 2025 are as follows:

Short term financial liabilities	31 March 2026	31 December 2025
Short term bank borrowings	22.579.154	21.382.991
	22.579.154	21.382.991
Short term portion of long term financial liabilities	31 March 2026	31 December 2025
Short term portion of long term bank borrowings	1.045.626	546.586
Principal and interest of bonds issued	1.681.343	1.614.573
Discount and commissions of bonds issued	(43.275)	(42.629)
Lease liabilities	23.385.627	23.420.791

Short term portion of long term

lease liabilities 2.918.885 2.729.340

Short term portion of long term

lease liabilities with purchase option	20.466.742	20.691.451
	26.069.321	25.539.321
Long term financial liabilities	31 March 2026	31 December 2025
Long term bank borrowings	5.631.034	5.120.598
Issued debt instruments (*)	20.613.832	20.300.498
Discount and commissions of bonds issued	(201.040)	(235.417)
Lease liabilities	164.173.880	161.076.800
Long term lease liabilities	6.626.632	7.180.901
Long term lease liabilities with purchase option	157.547.248	153.895.899
	190.217.706	186.262.479

(*) The Group issued bonds to qualified investors abroad on April 29, 2021, which were issued under the "Rule 144A" and/or "Regulation S" format, have a nominal value of USD 375.000, at 9,25% interest rate and the maturity is 5 years with an early payment option in the third and fourth years. The settlement process was completed and the bonds were fully redeemed following the repurchase by the Group of bonds amounting to USD 211.086 on September 12, 2024, and the remaining bonds amounting to USD 163.914 on April 28, 2025, from the respective investors.

The Group issued bonds to qualified investors abroad on September 11, 2024, which were issued under the "Rule 144A" and/or "Regulation S" format, have a nominal value of USD 500.000, at 8,00% interest rate and the maturity is 7 years with an early payment option starting at the end of three years.

The bonds are traded on the Irish Stock Exchange (Euronext Dublin). There are some financial covenants in the Terms and Conditions of the notes. The covenants of the notes are; negative pledge, limitation in indebtedness, publication of financial information, limitations on transactions with affiliates, minimum liquidity, merger, consolidation and sale of all assets substantially, limitation on asset sales, limitation on restricted payments. As of 31 March 2026, the Group complied with all covenants.

NOTE 22 - FINANCIAL INSTRUMENTS (cont'd) Financial Liabilities (cont'd)

Bank Borrowings

The effective interest rates, original currency and TL equivalents of the short and long term bank borrowings as of 31 March 2026 and 31 December 2025 are as follows :

31 March 2026	Weighted average interest rate (%)	Currency	Original amount	TL equivalent
Short term bank borrowings	4,87	Euro	442.524	22.579.154
Short term portion of long term bank borrowings	3,64	Euro	20.493	1.045.626
Long term bank borrowings	3,58	Euro	110.361	5.631.034
				29.255.814
31 December 2025	Weighted average interest rate (%)	Currency	Original amount	TL equivalent
Short term bank borrowings	4,98	Euro	423.818	21.382.991
Short term portion of long term bank borrowings	3,80	Euro	10.834	546.586
Long term bank borrowings	3,59	Euro	101.492	5.120.598
				27.050.175
Lease Liabilities

The details of lease liabilities as of 31 March 2026 and 31 December 2025 are as follows:

	31 March 2026	31 December 2025
Less than 1 year	30.001.692	29.454.369
Between 1 - 5 years	109.486.955	104.719.920
Over 5 years	85.258.303	84.552.398
	224.746.950	218.726.687
Less: Future interest expenses	(37.187.443)	(34.229.096)
	187.559.507	184.497.591
Present value of minimum lease payments of lease liabilities are as follows;
	31 March 2026	31 December 2025
Less than 1 year	23.385.627	23.420.791
Between 1 - 5 years	88.934.494	85.896.891
Over 5 years	75.239.386	75.179.909
	187.559.507	184.497.591

NOTE 22 - FINANCIAL INSTRUMENTS (cont'd) Financial Liabilities (cont'd)

The Group acquire certain of its handling equipment and aircraft through lease arrangements. The average lease term is 5,20 years. For the period ended 31 March 2026, the floating interest rate applicable to Euro-denominated lease liabilities, amounting to TL 136.684.212, is 3,82% (31 December 2025: 3,49%) and the floating rate applicable to US Dollar-denominated lease liabilities, amounting to TL 17.927.466, is 6,14% (31 December 2025: 5,92%).

Reconciliation of obligations arising from financing activities

1 January 2026	Utilized bank loans and repayments, (net)	Finance lease obtained and repayment of principals	Non-cash changes	31 March 2026
31.601.054	(820.501)	-	20.526.121	51.306.674
134.706.448	-	(7.284.782)	60.137.841	187.559.507
166.307.502	(820.501)	(7.284.782)	80.663.962	238.866.181
	Utilized	Finance lease obtained and
1 January 2025	bank loans and repayments, (net)	repayment of principals	Non-cash changes	31 March 2025
31.601.054	(3.362.158)	-	2.354.550	30.593.446
134.706.448	-	(5.194.424)	16.228.612	145.740.636
166.307.502	(3.362.158)	(5.194.424)	18.583.162	176.334.082

The changes in the Group's liabilities arising from financing activities are given in the following table:

Bank loans and

Issued debt instruments Lease payables

Bank loans and

Issued debt instruments Lease payables

NOTE 23 - NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS Financial Risk Factors

Market risk

The Group's activities expose primarily to the financial risks of changes in foreign currency exchange rates, fuel price and interest rates. The Group enters into a variety of derivative financial instruments to manage exposure to foreign currency, fuel price and interest rate risk.

Foreign currency risk management

The Group has transactions in non-Euro currencies including Turkish Lira revenues, US Dollar borrowings and fuel purchases. These non-Euro denominated transactions expose the Group to foreign currency risk. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.

NOTE 23 - NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd) Financial Risk Factors (cont'd)

Foreign currency risk management

The Group's foreign currency position of monetary and non-monetary assets/liabilities for the years ended 31 March 2026 and 31 December 2025 are as follows:

31 March 2026	TL Total	USD	TL	GBP	Other
1. Trade receivables	2.860.949	7.886	2.059.353	1.724	350.408
2a. Monetary financial assets	46.265.442	851.035	5.151.781	42.116	870.428
2b. Non monetary financial assets	-	-	-	-	-
3. Other	644.267	1.479	569.091	110	3.051
4. CURRENT ASSETS	49.770.658	860.400	7.780.225	43.950	1.223.887
5. Trade receivables	-	-	-	-	-
6a. Monetary financial assets	9.067.844	204.304	-	-	-
6b. Non monetary financial assets	-	-	-	-	-
7. Other	3.951.927	87.808	3.116	63	47.833
8. NON CURRENT ASSETS	13.019.771	292.112	3.116	63	47.833
9. TOTAL ASSETS	62.790.429	1.152.512	7.783.341	44.013	1.271.720
10. Trade payables	7.753.223	117.153	2.635.107	2.517	(229.318)
11. Financial liabilities	7.988.565	179.728	11.519	-	-
12a. Other liabilitites, monetary	10.002.128	109.475	5.101.283	158	32.617
12b. Other liabilities, non monetary	-	-	-	-	-
13. CURRENT LIABILITIES	25.743.916	406.356	7.747.909	2.675	(196.701)
14. Trade payables	-	-	-	-	-
15. Financial liabilities	62.408.652	1.406.096	357	-	-
16a. Other lliabilities, monetary	8.835.446	179.333	875.929	-	-
16b. Other liabilities, non monetary	-	-	-	-	-
17. NON CURRENT LIABILITIES	71.244.098	1.585.429	876.286	-	-
18. TOTAL LIABILITIES	96.988.014	1.991.785	8.624.195	2.675	(196.701)
19. Net asset / (liability) position of Off-statement of
financial position derivatives (19a-19b)	-	-	-	-	-
19.a Off-statement of financial position foreign currency
derivative assets	-	-	-	-	-
19b. Off-statement of financial position foreign currency
derivative liabilities	-	-	-	-	-
20. Net foreign currency asset/(liability)
position 21. Net foreign currency asset / (liability)	(34.197.585)	(839.273)	(840.854)	41.338	1.468.421
position of monetary items
(1+2a+3+5+6a+7-10-11-12a-14-15-16a)	(34.197.585)	(839.273)	(840.854)	41.338	1.468.421

NOTE 23 - NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd)

Financial Risk Factors (cont'd)
Foreign currency risk management
31 December 2025	TL Total	USD	TL	GBP	Other
1. Trade receivables	2.453.330	7.771	1.609.114	1.545	421.800
2a. Monetary financial assets	50.195.169	988.152	5.756.121	24.688	657.198
2b. Non monetary financial assets	-	-	-	-	-
3. Other	1.714.605	25.692	606.869	109	206
4. CURRENT ASSETS	54.363.104	1.021.615	7.972.104	26.342	1.079.204
5. Trade receivables	-	-	-	-	-
6a. Monetary financial assets	6.965.141	162.500	-	-	-
6b. Non monetary financial assets	-	-	-	-	-
7. Other	3.862.860	88.795	3.098	63	50.152
8. NON CURRENT ASSETS	10.828.001	251.295	3.098	63	50.152
9. TOTAL ASSETS	65.191.105	1.272.910	7.975.202	26.405	1.129.356
10. Trade payables	9.206.751	152.839	2.438.114	1.930	106.002
11. Financial liabilities	8.515.713	198.353	13.837	-	-
12a. Other liabilitites, monetary	6.080.881	48.753	3.945.150	195	34.795
12b. Other liabilities, non monetary	-	-	-	-	-
13. CURRENT LIABILITIES	23.803.345	399.945	6.397.101	2.125	140.797
14. Trade payables	-	-	-	-	-
15. Financial liabilities	60.501.948	1.411.470	3.115	-	-
16a. Other lliabilities, monetary	7.866.770	171.891	499.106	-	-
16b. Other liabilities, non monetary	-	-	-	-	-
17. NON CURRENT LIABILITIES	68.368.718	1.583.361	502.221	-	-
18. TOTAL LIABILITIES	92.172.063	1.983.306	6.899.322	2.125	140.797
19. Net asset / (liability) position of Off-statement of financial position derivatives (19a-19b)	-	-	-	-	-
19.a Off-statement of financial position foreign currency derivative assets 19b. Off-statement of financial position foreign currency derivative liabilities 20. Net foreign currency asset/(liability) position	- -(26.980.958)	- -(710.396)	- -1.075.880	- -24.280	- -988.559
21. Net foreign currency asset / (liability) position of monetary items (1+2a+3+5+6a+7-10-11-12a-14-15-16a)	(26.980.958)	(710.396)	1.075.880	24.280	988.559

NOTE 23 - NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS (cont'd) Financial Risk Factors (cont'd)

Foreign currency risk management

Foreign currency sensitivity

The Group is exposed to foreign exchange risk arising primarily with respect to the US Dollar and Turkish Lira. The following table details the Group's sensitivity to a 10% increase and decrease in US Dollar, and TL. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated items and adjusts their translation at the period end for a 10% change in foreign currency rates.

31 March 2026 Profit/(Loss) Shareholders' equity
	If foreign currency	If foreign currency	If foreign currency	If foreign currency
	appreciated 10%	depreciated 10%	appreciated 10%	depreciated 10%
Effect of 10% change in USD rate
USD net asset / (liability)	(3.725.034)	3.725.034	-	-
Part of hedged from USD risk	-	-	-	-
USD net effect	(3.725.034)	3.725.034	-	-
Effect of 10% change in TL rate
TL net asset / (liability)	(84.085)	84.085	11.165.396	(11.165.396)
Part of hedged from TL risk	-	-	-	-
TL net effect	(84.085)	84.085	11.165.396	(11.165.396)
Effect of 10% change in GBP rate
GBP net asset / liability	242.519	(242.519)	-	-
Part of hedged from GBP risk	-	-	-	-
GBP net effect	242.519	(242.519)	-	-
31 December 2025 Profit/(Loss) Shareholders' equity
	If foreign currency	If foreign currency		If foreign currency	If foreign currency
	appreciated 10%	depreciated 10%		appreciated 10%	depreciated 10%
Effect of 10% change in USD rate
USD net asset / (liability)	(3.044.919)	3.044.919		-	-
Part of hedged from USD risk	-			-	-
USD net effect	(3.044.919)	3.044.919		-	-
Effect of 10% change in TL rate
TL net asset / (liability)	107.588	(107.588)		11.813.720	(11.813.720)
Part of hedged from TL risk TL net effect	- 107.588	(107.588)		- 11.813.720	- (11.813.720)
Effect of 10% change in GBP rate
GBP net asset / liability	140.379	(140.379)		-	-
Part of hedged from GBP risk	-			-	-
GBP net effect	140.379	(140.379)		-	-

Foreign currency sensitivity tables as of 31 March 2026 and 31 December 2025 are as follows:

(Convenience Translation of The Report and Financial Statements Originally Issued in Turkish) PEGASUS HAVA TAŞIMACILIĞI A.Ş. AND ITS SUBSIDIARIES NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 MARCH 2026

(Amounts are expressed in Thousand Turkish Liras ("TL") and Thousand Euros unless otherwise stated.)

NOTE 24 - FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES)

Group Management believes that the carrying values of financial instruments approximates their fair values, except for financial investments, lease liabilities and issued debt instruments. The fair value of financial investments and issued bonds is determined by considering the market value (level 1).

Fair Value of Financial Instruments
		Financial assets and derivative instruments	Derivative instruments
31 March 2026	Financial assets and liabilities at amortized cost	which are recognized at fair value in shareholders' equity	which are recognized at fair value in profit/loss	Carrying amount	Note
Financial assets
Cash and cash equivalents	56.606.949	-	-	56.606.949	27
Trade receivables	4.110.371	-	-	4.110.371	6
- Other	4.110.371	-	-	4.110.371	6
Other receivables	8.401.765	-	-	8.401.765
- Other	8.401.765	-	-	8.401.765
Financial investments	19.016.036	2.475.506	-	21.792.421	22
Derivative financial assets	-	5.458.589	-	5.458.589	21
Financial liabilities
Bank borrowings	29.255.814	-	-	29.255.814	22
Issued debt instruments	22.185.392	-	-	22.050.860
Trade payables	14.292.878	-	-	14.292.878	6
- Related party	86.031	-	-	86.031	5
- Other	14.206.847	-	-	14.206.847
Other payables	6.150.447	-	-	6.150.447

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