Pegasus Hava Tasimaciligi Anonim SirketiBIST: PGSUS

6/2025 IFRS Financial Statements

Aug 12, 2025 at 10:27 PM UTC · Issued by Pegasus Hava Tasimaciligi Anonim Sirketi

PEGASUS HAVA TAŞIMACILIĞI ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE

SIX MONTH PERIOD ENDED 30 JUNE 2025

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 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS................................................. 5 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 6-40

NOTE 1 ORGANIZATION AND OPERATIONS OF THE GROUP ................................................................... 6

NOTE 2 BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS 6-10

NOTE 3 INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD ............................................ 10

NOTE 4 SEGMENT REPORTING ....................................................................................................................... 11

NOTE 5 RELATED PARTY TRANSACTIONS 11-12

NOTE 6 TRADE RECEIVABLES AND PAYABLES OTHER RECEIVABLES 12-13

NOTE 7 PREPAYMENTS, DEFERRED INCOME AND PASSENGER FLIGHT LIABILITIES...................... 14

NOTE 8 PROPERTY AND EQUIPMENT 15-16

NOTE 9 INTANGIBLE ASSETS .......................................................................................................................... 17

NOTE 10 RIGHT OF USE ASSETS ....................................................................................................................... 17

NOTE 11 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES .............................................................. 18

NOTE 12 COMMITMENTS. 19-20

NOTE 13 EXPENSES BY NATURE ...................................................................................................................... 21

NOTE 14 SHAREHOLDERS' EQUITY ................................................................................................................. 21

NOTE 15 REVENUE AND COST OF SALES 22-23

NOTE 16 GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES 23-24

NOTE 17 OTHER OPERATING INCOME AND EXPENSES .............................................................................. 24

NOTE 18 INCOME AND EXPENSES FROM INVESTING ACTIVITIES........................................................... 25

NOTE 19 FINANCIAL INCOME AND EXPENSES ............................................................................................. 25

NOTE 20 EARNINGS PER SHARE ....................................................................................................................... 26

NOTE 21 DERIVATIVE FINANCIAL INSTRUMENTS ...................................................................................... 26

NOTE 22 FINANCIAL INSTRUMENTS 26-31

NOTE 23 NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS 31-34

NOTE 24 FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES) 35-38

NOTE 25 EVENTS AFTER REPORTING PERIOD .............................................................................................. 38

NOTE 26 INCOME TAX EXPENSE ...................................................................................................................... 39

NOTE 27 EXPLANATIONS RELATED TO STATEMENT OF CASH FLOW.................................................... 40

		Current period 30 June	Prior period 31 December
	Notes	2025	2024
ASSETS
Current assets		1.565.694.915	1.891.835.243
Cash and cash equivalents	27	849.135.233	1.258.979.406
Financial assets	22	325.935.685	302.048.311
Trade receivables	6	104.546.028	73.467.728
Trade receivables from third parties		104.546.028	73.467.728
Other receivables	6	19.496.437	2.892.392
Other receivables from third parties		19.496.437	2.892.392
Derivative financial instruments	21	-	3.963.837
Inventories		41.721.938	41.520.211
Prepayments	7	219.813.778	201.897.122
Current income tax assets		4.842.285	2.327.277
Other current assets		203.531	4.738.959
Non-Current assets		5.947.388.530	5.819.032.995
Financial assets	22	138.977.221	125.770.276
Other receivables	6	77.010.967	84.911.131
Other receivables from third parties		77.010.967	84.911.131
Investments accounted by using the equity method	3	20.230.894	21.115.937
Property and equipment	8	507.270.996	470.967.606
Intangible assets	9	30.521.614	24.046.619
Right of use assets	10	4.162.291.425	4.172.222.342
Prepayments	7	621.963.838	493.115.950
Deferred tax assets	26	389.121.575	426.883.134
TOTAL ASSETS		7.513.083.445	7.710.868.238

		Current period 30 June	Prior period 31 December
	Notes	2025	2024
LIABILITIES
Current liabilities		1.469.817.407	1.482.289.523
Short term borrowings	22	47.926.320	172.048.659
Short term portion of long term borrowings	22	117.711.357	218.212.572
Short term portion of long term lease liabilities	22	400.256.701	405.833.468
Trade payables	6	303.465.600	216.174.134
Trade payables to related parties	5	891.026	1.194.536
Trade payables to third parties		302.574.574	214.979.598
Employee benefit obligations		21.264.011	14.704.364
Other payables	6	18.178.356	12.519.590
Other payables to third parties		18.178.356	12.519.590
Contract liabilities	7	394.066.125	333.941.687
Derivative financial instruments	21	16.038.240	4.645.693
Deferred income	7	87.453.816	40.016.533
Short term provisions		63.456.881	64.192.823
Short term provisions for employee benefits		30.513.537	62.635.867
Other short term provisions		32.943.344	1.556.956
Non-Current liabilities		3.956.976.279	4.189.573.178
Long term borrowings	22	455.810.108	469.797.544
Long term lease liabilities	22	3.111.883.442	3.260.356.410
Derivative financial instruments	21	2.327.180	364.343
Deferred income	7	205.467.297	202.964.552
Long term provisions		181.488.252	256.090.329
Long term provisions for employee benefits		53.210.527	48.123.147
Other long term provisions		128.277.725	207.967.182
SHAREHOLDERS' EQUITY		2.086.289.759	2.039.005.537
Paid-in share capital	14	230.037.951	230.037.951
Share premiums on capital stock Other comprehensive income/expense not to be reclassified to profit or loss		24.595.488	24.595.488
Actuarial losses on defined benefit plans Other comprehensive income/expense		(4.470.990)	(4.263.048)
to be reclassified to profit or loss
Currency translation differences	7.053.926		8.451.525
Hedge fund	(13.774.065)		(3.757.527)
Gain on financial assets measured at fair value	929.881		1.816.800
Restricted profit reserves	4.047.406		4.047.406
Retained earnings	1.778.076.942		1.416.584.246
Net income for the period	59.793.220		361.492.696
TOTAL LIABILITIES AND EQUITY	7.513.083.445		7.710.868.238

		Current period 1 January-	Prior period 1 January-	Current period 1 April -	Prior period 1 April -
Profit or loss	Notes	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Revenue	15	1.497.684.785	1.281.940.463	876.025.043	763.218.237
Cost of sales (-)	15	(1.317.285.498)	(1.108.019.228)	(681.512.775)	(575.936.270)
Gross profit		180.399.287	173.921.235	194.512.268	187.281.967
General administrative expenses (-)	16	(49.046.953)	(39.905.372)	(25.081.051)	(22.295.054)
Selling and marketing expenses (-)	16	(35.224.795)	(30.085.043)	(18.531.376)	(16.522.665)
Other operating income	17	353.187	9.552.525	172.622	176.963
Other operating expenses (-)	17	(127.116.863)	(1.858.396)	(87.422.332)	(170.512)
Operating profit		(30.636.137)	111.624.949	63.650.131	148.470.699
Income from investing activities	18	45.183.852	29.078.798	18.761.881	7.836.143
Expenses from investing activities (-)	18	(22.659)	(6.064.225)	(22.659)	(1.176.247)
Share of investments income accounted for using the equity method	3	1.528.468	1.236.977	934.271	800.330
Operating profit before financial expense		16.053.524	135.876.499	83.323.624	155.930.925
Financial income	19	213.975.575	23.088.552	149.822.115	12.588.158
Financial expense (-)	19	(128.772.477)	(172.391.761)	(63.679.516)	(75.240.802)
Profit/(loss) before tax		101.256.622	(13.426.710)	169.466.223	93.278.281
Tax income/(expense)		(41.463.402)	22.463.613	(47.799.356)	18.715.399
Deferred tax income/(expense)	26	(41.463.402)	22.463.613	(47.799.356)	18.715.399
Net profit for the period		59.793.220	9.036.903	121.666.867	111.993.680
Income/(loss) per share EUR cents	20	0,12	0,02	0,24	0,47
Other comprehensive income
Items not to be reclassified to profit or loss
Actuarial (losses) / gains on defined benefit plans		(277.257)	(955.691)	(220.668)	(1.514.008)
Deferred tax effect		69.315	238.923	55.167	378.502
Items to be reclassified to profit or loss
Currency translation differences		(1.397.599)	755.586	(1.358.946)	158.533
Gain on financial assets measured at fair value		(1.182.558)	(460.241)	313.809	(257.399)
Cash flow hedge		(13.355.384)	15.617.947	(12.886.931)	2.611.214
Deferred tax effect		3.634.485	(3.789.427)	3.143.279	(588.453)
Other comprehensive income		(12.508.998)	11.407.097	(10.954.290)	788.389
Total comprehensive income		47.284.222	20.444.000	110.712.577	112.782.069

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

PEGASUS HAVA TAŞIMACILIĞI A.Ş. AND ITS SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2025

(Amounts are expressed in full Euros (EUR) unless otherwise stated.)

				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 2024	EUR	60.544.134	194.089.305	(3.254.102)	8.808.787	(3.990.862)	1.483.652	4.047.406	626.643.772	789.940.474	1.678.312.566
Transfers	EUR	169.493.817	(169.493.817)	-	-	-	-	-	789.940.474	(789.940.474)	-
Net profit/(loss) for the period	EUR	-	-	-	-	-	-	-	-	9.036.903	9.036.903
Other comprehensive income / (expense)	EUR	-	-	(716.768)	755.586	11.713.460	(345.181)	-	-	-	11.407.097
As at 30 June 2024	EUR	230.037.951	24.595.488	(3.970.870)	9.564.373	7.722.598	1.138.471	4.047.406	1.416.584.246	9.036.903	1.698.756.566
As at 1 January 2025	EUR	230.037.951	24.595.488	(4.263.048)	8.451.525	(3.757.527)	1.816.800	4.047.406	1.416.584.246	361.492.696	2.039.005.537
Transfers	EUR	-	-	-	-	-	-	-	361.492.696	(361.492.696)	-
Net profit/(loss) for the period	EUR	-	-	-	-	-	-	-	-	59.793.220	59.793.220
Other comprehensive income / (expense)	EUR	-	-	(207.942)	(1.397.599)	(10.016.538)	(886.919)	-	-	-	(12.508.998)
As at 30 June 2025	EUR	230.037.951	24.595.488	(4.470.990)	7.053.926	(13.774.065)	929.881	4.047.406	1.778.076.942	59.793.220	2.086.289.759

Within the registered capital ceiling of EUR 230.037.951, the Company's issued capital amounting to EUR 60.544.134 was increased by EUR 169.493.817 to EUR 230.037.951, all of which was covered from the amounts in the " Share Premiums on Capital Stock" account, and capital increase was registered with the Trade Registry on May 30, 2024.

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

			Current period 1 January-	Prior period 1 January-
		Notes	30 June 2025	30 June 2024
A. CASH FLOWS FROM OPERATING ACTIVITIES
Income/(loss) for the period			59.793.220	9.036.903
Adjustments to reconcile the income/(loss)
Depreciation and amortization		8-9-10	198.612.163	163.660.012
Adjustments related with impairments			(1.332.720)	5.987.202
Provision for doubtful receivable			334.402	(77.023)
Adjustments related with financial investment impairments			(1.667.122)	6.064.225
Adjustments related with provisions			28.128.547	7.232.780
Provision for employee benefits			26.574.225	6.882.462
Legal provison			1.554.322	350.318
Interest and commission income			57.890.994	87.687.733
Adjustments related with fair value expense (income)			672.102	316.388
Adjustments related with fair value expense (income) of financial assets			672.102	316.388
Gain on equity investments accounted for using the equity method		3	(1.528.468)	(1.236.977)
Current tax expense			41.463.402	(22.463.613)
Adjustments for (income)/expense caused by sale or changes in share of joint ventures			-	-
Other provisions related with investing or financing activities			(187.261.295)	33.634.483
Changes in working capital
Increase in trade receivables			(31.412.702)	(32.364.828)
Increase in other receivables, prepayments and other assets			(56.469.045)	(168.769.290)
Increase in inventories			(201.727)	1.451.981
Increase in trade payables			87.291.466	79.671.201
Increase in deferred income, other payables and other current liabilities			79.164.015	266.813.261
Net cash generated from operating activities			274.809.952	430.657.236
Payment for the employee benefits provisions			(53.581.115)	(27.193.951)
Payment for other provisions			(4.434)	(32.634)
			221.224.403	403.430.651
B. CASH FLOWS FROM INVESTING ACTIVITIES
Net cash changes from acquisition and sale of debt instruments of other entities			(106.298.362)	12.102.912
Net cash changes from purchase and
sale of property, equipment and intangible assets			(26.947.648)	34.874.852
Interest received from financial investment			39.085.289	20.507.815
Changes in cash advances and payables			(136.010.850)	(120.568.308)
Other cash changes (*)			20.298.866	221.911.282
			(209.872.705)	168.828.553
C. CASH FLOWS FROM FINANCING ACTIVITIES
Increase in borrowings			118.349.967	103.184.210
Repayment of borrowings			(307.706.364)	(24.500.000)
Repayment of principal in lease liabilities			(196.465.893)	(171.995.177)
Interest and commission paid			(106.941.550)	(122.886.992)
Interest received			31.875.390	22.107.131
			(460.888.450)	(194.090.828)
NET DECREASE IN CASH AND CASH EQUIVALENTS
BEFORE TRANSLATION EFFECT (A+B+C)			(449.536.752)	378.168.376
D. TRANSLATION DIFFERENCES EFFECT ON CASH AND CASH EQUIVALENTS			39.692.579	6.096.793
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D)			(409.844.173)	384.265.169
E. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
AT THE BEGINNING OF THE PERIOD		27	1.258.979.406	493.596.374
AT THE END OF THE PERIOD (A+B+C+D+E)		27	849.135.233	877.861.543
(*) The change in time deposits with a maturity of more investments, has been presented.	than	three	months, classified	as financial

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 30 June 2025 and 31 December 2024 are as follows:

	30 June 2025	31 December 2024
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 30 June 2025 is 9.188 (31 December 2024: 8.459). The address of its principal office is Aeropark Yenişehir Mah. Osmanlı Bulvarı No: 11/A Kurtköy-Pendik İstanbul.

Approval of Financial Statements

The interim condensed consolidated financial statements of the Company and its subsidiaries for the six months ended 30 June 2025 were authorised for issue in accordance with a resolution of the Board of Directors on 12 August 2025.

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

Basis of Presentation Financial reporting standards

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 condensed consolidated financial statements are based on the statutory records, with adjustments and reclassifications for the purpose of fair presentation in accordance with IFRS.

The interim condensed consolidated financial statements have been prepared on a going concern basis, assuming that the Group will continue to utilize its assets effectively and meet its obligations in the normal course of 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 Company's management to make executive decisions are prepared in Euro. The functional currency of the Company, its subsidiary and associates, other than Hitit Bilgisayar and PIL, is Euro. Hitit Bilgisayar's and PIL's functional currency is US Dollars.

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

Basis of Presentation (cont'd) Functional and Presentation Currency (cont'd)
For the companies in Türkiye that maintain financial records in TL, currency translation from TL to the functional currency Euro 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.

Financial Reporting in Hyperinflationary Economies

In accordance with the POA's announcement dated 23 November 2023, companies applying International Financial Reporting Standards are required to present their financial statements for the annual reporting periods ending on or after 31 December 2024, adjusted for the effects of inflation in accordance with the relevant accounting principles in International Accounting Standard 29 "Financial Reporting in Hyperinflationary Economies" (IAS 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 IAS 29 in its financial statements to be prepared in accordance with IFRS. However, the financial statements as of 30 June 2025 and 31 December 2024 are prepared in accordance with the Tax Law, have been subject to inflation correction in accordance with the legislation.

Comparative Information and Reclassification of Prior Period Financial Statements

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 consolidated financial statements, comparative information is reclassified and material changes are disclosed if necessary. Group has not made any reclassification in the prior period consolidated financial statements in order to maintain consistency with current period consolidated financial statements.

Basis of Consolidation

The following table illustrates the condensed consolidated subsidiaries and the Group's ownership percentage in these subsidiaries as of 30 June 2025 and 31 December 2024:

Ownership rate Country of registration and

Name of the company Principal activity 30 June 2025 31 December 2024 operation

Pegasus Havacılık

Teknolojileri ve

Ticaret A.Ş.

Pegasus Airlines

Simulator technical support and

maintenance 100% 100% Türkiye

Innovation Lab, Inc. Technology - R&D 100% 100% USA

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

Basis of Presentation (cont'd) Basis of Consolidation (cont'd)

The following table illustrates the affiliates and joint ventures then indicates the Group's ownership percentage in these joint ventures as of 30 June 2025, 31 December 2024:

Ownership rate Country of

Principal

31 December

Ownership registration and

Name of the company	activity	30 June 2025	2024	type	operation
Pegasus Uçuş Eğitim	Simulator			Joint
Merkezi A.Ş. ("PUEM")	training	-	49,40%	venture	Türkiye
Hitit Bilgisayar
Hizmetleri	Information
A.Ş. ("Hitit	system			Joint
Bilgisayar")	solutions	36,82%	36,82%	venture	Türkiye

(*) The liquidation process of PUEM, in which the Company held a 49.40% stake, was completed and the entity was deregistered from the trade registry as of February 27, 2025.

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.
New and Amended Turkish Financial Reporting Standards

Amendments that are mandatorily effective from 2025
Amendments to IAS 21 Lack of Exchangeability
The amendments contain guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not. Amendments are effective from annual reporting periods beginning on or after 1 January 2025.
The Group evaluates the effects of these standards, amendments and improvements on the consolidated financial statements. The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)
1. New and Amended Turkish Financial Reporting Standards (cont'd)
New and revised IFRSs in issue but not yet effective

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

Amendments to IFRS 9 and IFRS 7 Amendments IFRS 9 and IFRS 7 regarding the

classification and measurement of financial instruments

IFRS 18 Presentation and Disclosures in Financial Statements

IFRS 19 Subsidiaries without Public Accountability: Disclosure

Annual Improvements Annual Improvements to IFRS Accounting Standards -Volume 11

Amendments IFRS 9 and IFRS 7 regarding the classification and measurement of financial instruments

The amendments address matters identified during the post-implementation review of the classification and measurement requirements of IFRS 9 Financial Instruments. Annual reporting periods beginning on or after 1 January 2026.

IFRS 18 Presentation and Disclosures in Financial Statements

IFRS 18 includes requirements for all entities applying IFRS for the presentation and disclosure of information in financial statements. Applicable to annual reporting periods beginning on or after 1 January 2027.

IFRS 19 Subsidiaries without Public Accountability: Disclosure

IFRS 19 specifies the disclosure requirements an eligible subsidiary is permitted to apply instead of the disclosure requirements in other IFRS Accounting Standards. Applicable to annual reporting periods beginning on or after 1 January 2027.

Annual Improvements to IFRS Accounting Standards - Volume 11

The pronouncement comprises the following amendments:

IFRS 1: Hedge accounting by a first-time adopter
IFRS 7: Gain or loss on derecognition
IFRS 7: Disclosure of deferred difference between fair value and transaction price
IFRS 7: Introduction and credit risk disclosures
IFRS 9: Lessee derecognition of lease liabilities
IFRS 9: Transaction price
IFRS 10: Determination of a 'de facto agent'
IAS 7: Cost method

Seasonality on Operations
Due to seasonality of air passenger transportation, it's expected to incur higher revenues in the second half of the year compared to the first half. Besides, as a result of higher sales with the effect of summer season and growth in operations of the Company, trade receivables and passenger flight liabilities increased as of 30 June 2025 compared to last year-end.
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:

30 June 2025

31 December 2024

Joint ventures

Hitit Bilgisayar

20.230.894

21.115.937

20.230.894

21.115.937

Total profit from investments accounted for using the equity method is as follows:

	1 January- 30 June 2025	1 January- 30 June 2024	1 April - 30 June 2025	1 April - 30 June 2024
Hitit Bilgisayar	1.528.468	1.280.306	934.271	843.659
PUEM	-	(43.329)	-	(43.329)
Net profit	1.528.468	1.236.977	934.271	800.330

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

Hitit Bilgisayar
	30 June 2025	31 December 2024
Current assets	24.978.226	24.590.146
Non-current assets	46.454.570	46.605.202
Current liabilities	(12.268.515)	(10.381.617)
Non-current liabilities	(4.500.800)	(3.781.199)
Net assets of joint venture	54.663.481	57.032.532
Group's ownership interest in the joint venture	36,82%	36,82%
Goodwill	103.800	116.559
Group's share in the net assets of the joint venture	20.230.894	21.115.937
	1 January- 30 June 2025	1 January- 30 June 2024
Revenue	18.120.110	14.010.551
Depreciation and amortisation expense	(3.778.975)	(2.601.141)
Interest income/(expense), net	2.262.048	249.561
Profit for the year	4.151.190	3.477.203
Group's weighted average ownership interest	36,82%	36,82%
Group's share in the net profit of the joint venture	1.528.468	1.280.306

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 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:

Trade payables to related parties

	30 June 2025	31 December 2024
Balances with joint ventures: Hitit Bilgisayar	753.103	1.078.540
Balances with other related parties: Esasburda İnşaat Sanayi ve Ticaret A.Ş. ("Esasburda")	6.459	25.774
Ere Avm İnşaat A.Ş. ("Ere Avm")	131.464	90.222
	891.026	1.194.536
(ii) Significant Transactions with Related Parties:

Until May 2024 , the Group leased their head office building from Esasburda, another Esas Holding subsidiary. Esasburda also charged 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 health services from Alarm Sağlık.

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

Purchases of goods or services

	1 January-	1 January-	1 April -	1 April -
	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Transactions with joint ventures:
Hitit Bilgisayar	4.304.868	3.453.608	1.933.092	1.514.714
Transactions with other related parties:
Ere Avm	879.400	-	416.707	-
Esasburda	105.424	308.944	11.724	220.057
Alarm Sağlık	-	17.495	-	11.476
Other	-	262	-	-
	5.289.692	3.780.309	2.361.523	1.746.247

NOTE 5 - RELATED PARTY TRANSACTIONS (cont'd)

Significant Transactions with Related Parties: (cont'd)

Lease expenses

1 January-	1 January-	1 April -	1 April -
30 June 2025	30 June 2024	30 June 2025	30 June 2024
Esasburda (*) -	317.004	-	77.241
-	317.004	-	77.241

(*) Lease expenses are recorded as depreciation and interest under IFRS 16 leases standard. Amounts presented above represent issued invoices. In May 2024, the Group decided to purchase the office building which is the basis of the lease expense. The transactions in this context have been mediated by a bank for the financing of the purchase and the Company will obtain ownership of the building from the bank at the end of the three-year lease period.

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 paid during the period ended 30 June 2025 and 30 June 2024 are as follows:

1 January-	1 January-	1 April -	1 April -
30 June 2025	30 June 2024	30 June 2025	30 June 2024
Salaries and benefits 8.951.933	6.984.938	8.394.675	6.321.370
8.951.933	6.984.938	8.394.675	6.321.370

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

The details of short term trade receivables as of 30 June 2025 and 31 December 2024 are as follows:

	30 June 2025	31 December 2024
Trade receivables	67.848.656	41.528.451
Credit card receivables	39.117.270	32.630.019
Income accruals	1.677.953	3.310.224
	108.643.879	77.468.694
Allowance for credit risk adjustment under TFRS 9	(4.097.851)	(4.000.966)
	104.546.028	73.467.728

The average collection period of trade receivables is approximately 20 days (31 December 2024: 19 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 30 June 2025 and 31 December 2024 are as follows:

	30 June 2025	31 December 2024
Trade payables	91.325.426	132.529.077
Accrued direct operational costs	211.249.148	82.450.521
Trade payables to related parties (Note 5)	891.026	1.194.536
	303.465.600	216.174.134

The average payment period of trade payables is approximately 35 days (31 December 2024: 30 days).

Short term other receivables

The details of short term other receivables as of 30 June 2025 and 31 December 2024 are as follows:

	30 June 2025	31 December 2024
Deposits and guarantees given (*)	12.066.358	1.415.373
Receivables from pilots for flight training	6.479.837	284.615
Receivables from tax office	759.691	724.261
Other receivables	190.551	468.143
	19.496.437	2.892.392

(*) The amount of EUR 11.058.981 in deposits given, consists of guarantees given to the banks regarding the valuation of derivative transactions.

Long term other receivables

The details of long term other receivables as of 30 June 2025 and 31 December 2024 are as follows:

	30 June 2025	31 December 2024
Receivables from pilot trainings	37.411.933	42.738.065
Deposits given	39.599.034	42.173.066
	77.010.967	84.911.131
Short term other payables	30 June 2025	31 December 2024
Taxes payables	11.382.814	10.170.687
Deposits received	6.795.542	2.348.903
	18.178.356	12.519.590

NOTE 7 - PREPAYMENTS, DEFERRED INCOME AND CONTRACT LIABILITIES

The details of prepayments as of 30 June 2025 and 31 December 2024 are as follows:

Short term prepayments

	30 June 2025	31 December 2024
Advances on aircraft purchases	125.699.027	122.857.877
Advances to suppliers	75.506.716	51.230.811
Prepaid insurance expenses	6.474.081	18.002.352
Other prepaid expenses	12.133.954	9.806.082
	219.813.778	201.897.122
Long term prepayments	30 June 2025	31 December 2024
Advances on aircraft purchases	113.649.764	57.215.071
Prepaid maintenance expenses	508.059.675	435.654.062
Other prepaid expenses	254.399	246.817
	621.963.838	493.115.950

Deferred Income Contract Liabilities

The details of passenger flight liabilities as of 30 June 2025 and 31 December 2024 are as follows:

	30 June 2025	31 December 2024
Flight liability from ticket sales	280.323.752	218.926.889
Passenger airport fees received from customers (*)	72.300.938	73.165.429
Flight liability from flight points	41.441.435	41.849.369
	394.066.125	333.941.687

(*) 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	30 June 2025	31 December 2024
Advances received from customers	46.630.026	27.513.947
Other deferred income	40.823.790	12.502.586
	87.453.816	40.016.533
Long term deferred income	30 June 2025	31 December 2024
Deferred income (*)	205.467.297	202.964.552
	205.467.297	202.964.552

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

NOTE 8 - PROPERTY AND EQUIPMENT
				Components,
Machinery	Motor	Furniture and	Leasehold	spare engine	Owned	Construction
30 June 2025 and equipment	vehicles	fixtures	improvements	and repairables	Aircraft	in progress	Total
Cost:
Opening 35.481.715	27.496.286	41.168.819	13.821.667	373.458.634	286.150.383	9.424.254	787.001.758
Additions 632.528	2.227.876	2.586.653	-	54.739.230	-	13.877.708	74.063.995
Transfers (*) -	-	-	-	(12.293.868)	-	-	(12.293.868)
Closing 36.114.243	29.724.162	43.755.472	13.821.667	415.903.996	286.150.383	23.301.962	848.771.885
Accumulated depreciation:
Opening (15.096.358)	(10.151.943)	(29.459.673)	(13.358.614)	(102.323.065)	(145.644.499)	-	(316.034.152)
Depreciation for the year (1.160.339)	(1.398.286)	(1.546.380)	(48.293)	(14.379.984)	(6.933.455)	-	(25.466.737)
Closing (16.256.697)	(11.550.229)	(31.006.053)	(13.406.907)	(116.703.049)	(152.577.954)	-	(341.500.889)
Net book value 19.857.546	18.173.933	12.749.419	414.760	299.200.947	133.572.429	23.301.962	507.270.996

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

NOTE 8 - PROPERTY AND EQUIPMENT (cont'd)

30 June 2024	Machinery and equipment	Motor vehicles	Furniture and fixtures	Leasehold improvements	Components, spare engine and repairables	Owned Aircraft	Construction in progress	Total
Cost:
Opening	33.882.470	22.022.783	36.102.691	13.466.158	205.052.745	275.625.690	8.071.106	594.223.643
Additions	558.517	1.305.168	4.335.902	-	95.438.152	537.485	1.044.590	103.219.814
Transfers (*)	-	-	-	-	(9.401.228)	-	-	(9.401.228)
Closing	34.440.987	23.327.951	40.438.593	13.466.158	291.089.669	276.163.175	9.115.696	688.042.229
Accumulated depreciation:
Opening	(12.882.366)	(8.843.803)	(26.613.317)	(13.273.790)	(81.576.702)	(132.444.241)	-	(275.634.219)
Depreciation for the year	(1.081.090)	(943.039)	(1.407.979)	(51.695)	(9.787.828)	(6.494.838)	-	(19.766.469)
Closing	(13.963.456)	(9.786.842)	(28.021.296)	(13.325.485)	(91.364.530)	(138.939.079)	-	(295.400.688)
Net book value	20.477.531	13.541.109	12.417.297	140.673	199.725.139	137.224.096	9.115.696	392.641.541

(*) 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		30 June 2025			30 June 2024
Cost: Opening		64.273.293			52.619.528
Additions		11.019.132			5.788.559
Closing		75.292.425			58.408.087
Accumulated amortization:
Opening		(40.226.674)			(32.864.322)
Amortization for the year		(4.544.137)			(3.609.581)
Closing		(44.770.811)			(36.473.903)
Net book value		30.521.614			21.934.184
NOTE 10 - RIGHT OF USE ASSETS
30 June 2025	Field Rental	Building	Aircraft	Other	Total
Cost:
Opening	14.570.782	24.733.613	5.219.572.081	311.363	5.259.187.839
Additions	-	-	205.902.564	-	205.902.564
Disposals	-	-	(74.052.284)	-	(74.052.284)
Closing	14.570.782	24.733.613	5.351.422.361	311.363	5.391.038.119
Accumulated depreciation:
Opening	(13.340.574)	(396.120)	(1.072.917.440)	(311.363)	(1.086.965.497)
Depreciation for the period	(647.141)	(309.170)	(167.644.978)	-	(168.601.289)
Disposals	-	-	26.820.092	-	26.820.092
Closing	(13.987.715)	(705.290)	(1.213.742.326)	(311.363)	(1.228.746.694)
Net book value	583.067	24.028.323	4.137.680.035	-	4.162.291.425
(*) Aircraft which are sold presented as disposals.
30 June 2024	Field Rental	Building	Aircraft	Other	Total
Cost:
Opening	14.570.782	7.785.814	4.552.802.090	311.363	4.575.470.049
Additions	-	22.747.126	391.223.040	-	413.970.166
Disposals (*)	-	(7.785.815)	(270.002.188)	-	(277.788.003)
Closing	14.570.782	22.747.125	4.674.022.942	311.363	4.711.652.212
Accumulated depreciation:
Opening	(11.292.007)	(4.952.114)	(1.074.263.186)	(311.363)	(1.090.818.670)
Depreciation for the period	(1.569.975)	(592.450)	(138.121.537)	-	(140.283.962)
Disposals (*)	-	6.451.103	201.300.300	-	207.751.403
Transfers	1.001.744	(1.001.744)	-	-	-
Closing	(11.860.238)	(95.205)	(1.011.084.423)	(311.363)	(1.023.351.229)
Net book value	2.710.544	22.651.920	3.662.938.519	-	3.688.300.983

(*) Aircraft which are sold presented as disposals.

NOTE 11 - PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

Litigation

The Group is involved in lawsuits and claims that have been filed against, the total claims constituted by which, excluding reserved rights for claiming excess amounts, risk of litigation and interest, is EUR

4.911.514 as of 30 June 2025 (31 December 2024: EUR 5.093.269). These lawsuits and fines have been evaluated by the Group's management and a litigation provision of EUR 2.589.777 (31 December 2024: EUR 1.556.956) has been provided against claims for which management believes it is probable it will be required to make a payment.

Tax Inspection

The Company'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 EUR

51.165 (equivalent of TL 1.780.660) tax assessment has been declared to the Company. Against the 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 June 30, 2025. 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.

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 EUR 765.689, EUR 988.985 and EUR 475.031, respectively. All three lawsuits act on same claims and the airports no. 5/2013 whereby the plaintiff, as the operator of the Ercan Airport under North Cyprus Airports Services and Charges Law, claims EUR 15 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 EUR 1.679.114. 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 EUR 1.679.114, 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 June 30, 2025.

NOTE 12 - COMMITMENTS
Purchase Commitments	30 June 2025	31 December 2024
Commitments to purchase aircraft	25.573.665.548	29.164.611.749
	25.573.665.548	29.164.611.749

As of 30 June 2025, the Group holds the right to purchase 149 aircraft on firm order. In accordance with agreement the expected deliveries are 6 aircraft in 2025, 8 aircraft in 2026, 13 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 EUR 239.348.791 (31 December 2024: EUR 180.072.948). Of this amount, EUR 125.699.027 is reclassified as short-term, and EUR 113.649.764 is reclassified as long-term prepayments (31 December 2024: EUR 122.857.877 is reclassified as short-term, EUR 57.215.071 is reclassified as long-term prepayments).

Collaterals-Pledges-Mortgages("CPM")

The details of the CPMs given by the Group as of 30 June 2025 is as follows:

30 June 2025	EUR TOTAL	USD	EUR	TL	Other
A. Total amounts of CPM given on behalf of its own
legal entity
-Collateral	59.839.603	22.155.935	36.827.460	27.307.070	3.510.824
-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	-	-	-	-	-
i. Total amount of CPM given on behalf of the Parent
-Collateral	-	-	-	-	-
-Pledge	-	-	-	-	-
-Mortgage	-	-	-	-	-

ii. 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	-	-	-	-	-
	59.839.603	22.155.935	36.827.460	27.307.070	3.510.824

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 30 June 2025.

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

The details of the CPMs given by the Group as of 31 December 2024 is as follows:

31 December 2024	EUR TOTAL	USD	EUR	TL	Other
A. Total amounts of CPM given on behalf of its own
legal entity
-Collateral	37.857.724	19.818.530	12.544.285	109.847.593	3.324.929
-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	-	-	-	-	-
i. Total amount of CPM given on behalf of the Parent
-Collateral	-	-	-	-	-
-Pledge	-	-	-	-	-
-Mortgage	-	-	-	-	-

ii. 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	-	-	-	-	-
	37.857.724	19.818.530	12.544.285	109.847.593	3.324.929

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 2024.

NOTE 13 - EXPENSES BY NATURE

The details of expenses by nature for the years periods 30 June 2025 and 30 June 2024 are as follows:

	1 January-	1 January-	1 April -	1 April -
	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Jet fuel expenses	410.536.488	427.380.069	214.902.302	227.456.337
Personnel expenses	297.964.863	195.709.172	149.889.116	97.296.529
Depreciation and amortisation expenses	198.612.163	163.660.012	101.386.322	81.116.382
Handling and station fees	118.314.177	99.180.311	62.899.745	54.518.086
Navigation expenses	104.900.955	81.072.733	58.896.625	44.521.785
Maintenance expenses	58.560.881	52.614.489	30.082.422	28.294.678
Landing expenses	58.655.221	46.593.773	31.778.343	25.327.312
Passenger service and catering expenses	21.098.708	14.832.632	9.912.654	7.157.911
Advertising expenses	12.126.673	10.035.056	5.484.089	6.335.480
Commission expenses	11.477.748	9.874.805	7.478.379	5.014.777
Short term operational lease expenses	1.936.738	1.209.149	1.936.738	145.969
Other expenses	107.372.631	75.847.442	50.478.467	37.568.743
	1.401.557.246	1.178.009.643	725.125.202	614.753.989
NOTE 14 - SHAREHOLDERS' EQUITY

The Company's shareholding structure as of 30 June 2025 and 31 December 2024 are as follows:

30 June 2025 31 December 2024

Shareholders	(%)	EUR	(%)	EUR
Esas Holding	52,81	121.485.811	52,81	121.485.811
Publicly held	45,37	104.375.962	45,37	104.375.962
Emine Kamışlı	0,61	1.392.059	0,61	1.392.059
Ali İsmail Sabancı	0,61	1.392.059	0,61	1.392.059
Kazım Köseoğlu	0,30	696.030	0,30	696.030
Can Köseoğlu	0,30	696.030	0,30	696.030
EUR historic capital	100,00	230.037.951	100,00	230.037.951

The Company's share capital consists of 500.000.000 shares of par value TL 1 each (31 December 2024: 500.000.000 shares). All issued shares are fully paid in cash.

NOTE 15 - REVENUE AND COST OF SALES

The details of revenue and cost of sales for the periods ended 30 June 2025 and 30 June 2024 are as follows:

Revenue:	1 January-	1 January-	1 April -	1 April -
	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Scheduled flight and service revenue	1.476.691.342	1.259.365.147	861.626.410	747.007.257
International flight revenue	697.469.303	633.598.875	429.737.023	387.022.689
Domestic flight revenue	199.596.119	165.560.934	114.507.581	97.695.521
Service revenue	579.625.920	460.205.338	317.381.806	262.289.047
Charter flight and service revenue	15.124.715	17.616.467	11.724.113	13.558.879
Charter flight revenue	15.124.715	17.616.467	11.724.113	13.558.879
Other revenue	5.868.728	4.958.849	2.674.520	2.652.101
	1.497.684.785	1.281.940.463	876.025.043	763.218.237

The Group's revenue is disaggregated into revenue from scheduled flights, revenue from chartered flights, and other revenues in accordance with the IFRS 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- 30 June 2025	1 January- 30 June 2024	1 April - 30 June 2025	1 April - 30 June 2024
Europe	503.233.406	452.731.175	331.472.704	290.544.886
Domestic	199.596.119	165.560.934	114.507.581	97.695.521
Other	194.235.897	180.867.700	98.264.319	96.477.803
	897.065.422	799.159.809	544.244.604	484.718.210

NOTE 15 - REVENUE AND COST OF SALES (cont'd)

Cost of sales:
	1 January-	1 January-	1 April -	1 April -
	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Jet fuel expenses	410.536.488	427.380.069	214.902.302	227.456.337
Personnel expenses	272.858.325	175.234.762	137.633.646	86.195.295
Depreciation and amortisation expenses	189.598.640	156.476.882	96.761.645	77.402.200
Handling and station fees	118.314.177	99.180.311	62.899.745	54.518.086
Navigation expenses	104.900.955	81.072.733	58.896.625	44.521.785
Maintenance expenses	58.560.881	52.614.489	30.082.422	28.294.678
Landing expenses	58.655.221	46.593.773	31.778.343	25.327.312
Passenger service and catering expenses	21.098.708	14.832.632	9.912.654	7.157.911
Insurance expenses	10.185.958	9.612.249	5.125.122	4.844.652
Short term lease expenses	1.936.738	1.209.149	1.936.738	145.969
Other expenses	70.639.407	43.812.179	31.583.533	20.072.045
	1.317.285.498	1.108.019.228	681.512.775	575.936.270

NOTE 16 - GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES

	1 January- 30 June 2025	1 January- 30 June 2024	1 April - 30 June 2025	1 April - 30 June 2024
General administrative expenses	49.046.953	39.905.372	25.081.051	22.295.054
Marketing expenses	35.224.795	30.085.043	18.531.376	16.522.665
	84.271.748	69.990.415	43.612.427	38.817.719

The details of general administrative expenses and marketing expenses for the periods ended 30 June 2025 and 30 June 2024 are as follows (there are no research & development expenses in the periods ended in respective dates):

General administrative expenses:
	1 January-	1 January-	1 April -	1 April -
	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Personnel expenses	19.988.404	16.172.241	9.756.736	8.739.831
IT expenses	12.146.376	9.482.136	6.331.245	5.205.584
Depreciation and amortisation expenses	7.210.818	5.746.504	3.699.741	2.971.346
Consultancy expenses	3.153.336	2.693.727	1.872.511	1.895.385
Office utility expenses	1.171.256	988.202	664.680	455.946
Legal and notary expenses	1.424.258	896.382	868.524	475.559
Communication expenses	762.222	1.359.235	136.254	977.789
Travel expenses	1.198.181	1.195.620	682.989	738.619
Training expenses	216.206	77.563	131.557	41.695
Other expenses	1.775.896	1.293.762	936.814	793.300
	49.046.953	39.905.372	25.081.051	22.295.054

NOTE 16 - GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES (cont'd)

Marketing expenses:	1 January-	1 January-	1 April -	1 April -
	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Advertising expenses	12.126.673	10.035.056	5.484.089	6.335.480
Commission expenses	11.477.748	9.874.805	7.478.379	5.014.777
Personnel expenses	5.118.134	4.302.169	2.498.734	2.361.403
Call center expenses	3.290.116	3.060.400	1.461.705	1.388.981
Depreciation and amortisation expenses	1.802.705	1.436.626	924.936	742.836
Other expenses	1.409.419	1.375.987	683.533	679.188
	35.224.795	30.085.043	18.531.376	16.522.665

NOTE 17 - OTHER OPERATING INCOME AND EXPENSES

The details of other operating income and expenses for the periods ended 30 June 2025 and 30 June 2024 are as follows:

Other operating income:
	1 January-	1 January-	1 April -	1 April -
	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Foreign exchange gain from operating activities, net	-	9.266.029	-	(109.533)
Reversal of doubtful cash and cash equivalents	339.332	-	102.867	-
Reversal of doubtful provision	13.855	-	69.755	-
Other	-	286.496	-	286.496
	353.187	9.552.525	172.622	176.963
Other operating expenses:
	1 January-	1 January-	1 April -	1 April -
	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Foreign exchange loss from operating activities, net	121.575.587	-	85.406.740
Legal provision and penalty expense	3.313.503	281.776	460.256	140.343
Doubtful receivable allowance expense	-	50.071	-	(389.002)
Trade receivables allowance expense	525.544	239.369	583.667	16.706
Cash and cash equivalents allowance expense	-	120.498	-	(29.632)
Other	1.702.229	1.166.682	971.669	432.097
	127.116.863	1.858.396	87.422.332	170.512

NOTE 18 - INCOME AND EXPENSES FROM INVESTING ACTIVITIES

The details of income from investing activities for the periods ended 30 June 2025 and 30 June 2024 are as follows:

Income from investing activities:
	1 January-	1 January-	1 April -	1 April -
	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Interest income from time deposits	22.216.313	9.833.068	15.225.286	4.369.332
Gain arising from aircraft sale	6.991.027	6.493.452	44.100	(1.219.507)
Interest income from eurobond	13.605.212	11.588.949	(469.854)	3.607.294
Gain from eurobond sales (*)	413.369	1.079.024	245.102	1.079.024
Income from sale of fixed assets	1.667.122	-	3.431.561	-
Other income	290.809	84.305	285.686	-
	45.183.852	29.078.798	18.761.881	7.836.143

(*) 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-	1 January-	1 April -	1 April -
	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Loss from eurobond sales	22.659	-	22.659	-
Financial investments allowance expense	-	6.064.225	-	1.176.247
	22.659	6.064.225	22.659	1.176.247

NOTE 19 - FINANCIAL INCOME AND EXPENSES

The details of financial income and expenses for the periods ended 30 June 2025 and 30 June 2024 are as follows:

Financial income:	1 January-	1 January-	1 April -	1 April -
	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Foreign exchange gain, net	183.542.470	-	134.550.412	-
Interest income	30.433.105	21.913.092	15.271.703	11.467.849
Gain on derivative contracts	-	1.175.460	-	1.120.309
	213.975.575	23.088.552	149.822.115	12.588.158
Financial expenses:	1 January-	1 January-	1 April -	1 April -
	30 June 2025	30 June 2024	30 June 2025	30 June 2024
Interest expense on leases	78.377.965	85.481.093	39.010.895	42.135.102
Interest expense on issued debt instruments	20.150.442	16.003.672	9.696.711	8.069.148
Commission and other expenses	20.937.068	18.933.226	20.937.068	10.256.029
Losses from derivative contracts	4.626.853	-	2.582.598	-
Interest expense on bank loans	4.680.149	10.604.850	(8.547.756)	4.929.943
Foreign exchange loss, net	-	41.368.920	-	9.850.580
	128.772.477	172.391.761	63.679.516	75.240.802

NOTE 20 - EARNINGS PER SHARE

Earnings per share disclosed in the 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 2024 and 2025 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 30 June 2025 and 30 June 2024 are as follows:

	1 January- 30 June 2025	1 January- 30 June 2024	1 April - 30 June 2025	1 April - 30 June 2024
Net profit	59.793.220	9.036.903	121.666.867	111.993.680
Weighted average number of shares issued in the year	500.000.000	500.000.000	500.000.000	500.000.000
Income per share	0,12	0,02	0,24	0,47

NOTE 21 - DERIVATIVE FINANCIAL INSTRUMENTS Fair Value of Derivative Instruments 30 June 2025 31 December 2024

	Asset	Liability	Asset	Liability
Short term	-	16.038.240	3.963.837	4.645.693
Long term	-	2.327.180	-	364.343
	-	18.365.420	3.963.837	5.010.036

Explanations related to derivative instruments are disclosed in Note 24.

NOTE 22 - FINANCIAL INSTRUMENTS
Financial Assets
Short term	30 June 2025	31 December 2024
Financial investments measured at amortized cost	224.347.274	172.455.687
Financial assets recognized at fair value through profit or loss	93.094.305	101.104.332
Time Deposit (*)	8.788.335	28.842.985
Less: Allowance for impairment under IFRS 9	(294.229)	(354.693)
	325.935.685	302.048.311

(*) The balance includes time deposits and with original maturities between three months and one year.

NOTE 22 - FINANCIAL INSTRUMENTS (cont'd)
Financial Assets (cont'd)
Long term	30 June 2025	31 December 2024
Financial investments measured at amortized cost	140.594.950	129.950.216
Less: Allowance for impairment under IFRS 9	(1.617.729)	(4.179.940)
	138.977.221	125.770.276
Financial investments accounted at amortized cost
	30 June 2025	31 December 2024
Short term financial investments measured at amortized cost	224.347.274	172.455.687
Long term financial investments measured at amortized cost	140.594.950	129.950.216
	364.942.224	302.405.903
	30 June 2025	31 December 2024
Government Debt Securities	142.610.296	192.939.473
Corporate Debt Securities	222.331.928	109.466.430
	364.942.224	302.405.903

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 and Pounds or pay fixed interest every year and every six months.

The weighted average coupon interest rates of existing Euro, US Dollar and Pounds financial investments that are measured at amortized cost as of 30 June 2025 and 31 December 2024 are as follows:

	Weighted average Coupon Interest Rate (%)	FX Type	Asset Value EUR
Government Debt Securities	7,5	US Dollars	124.838.029
Government Debt Securities	6,2	GBP	17.772.267
Corporate Debt Securities	6,4	US Dollars	191.305.719
Corporate Debt Securities	5,9	Euro	25.100.458
Corporate Debt Securities	6,2	GBP	5.925.751
30 June 2025			364.942.224
	Weighted average
	Coupon Interest Rate (%)	FX Type	Asset Value EUR
Government Debt Securities	7,6	US Dollars	180.234.119
Government Debt Securities	6,7	GBP	12.705.354
Corporate Debt Securities	7,2	US Dollars	84.170.737
Corporate Debt Securities	6,7	Euro	25.295.693
31 December 2024			302.405.903

NOTE 22 - FINANCIAL INSTRUMENTS (cont'd) Financial Assets (cont'd) Financial investments at fair value through other comprehensive income

	30 June 2025	31 December 2024
Government Debt Securities	78.391.483	72.038.270
Corporate Debt Securities	14.702.822	29.066.062
	93.094.305	101.104.332

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 EUR
Government Debt Securities	8,0	US Dollars	78.391.483
Corporate Debt Securities	7,6	US Dollars	14.702.822
30 June 2025			93.094.305
	Weighted average Coupon Interest Rate (%)	FX Type	Asset Value EUR
Government Debt Securities	8,4	US Dollars	72.038.270
Corporate Debt Securities	8,1	US Dollars	29.066.062
31 December 2024			101.104.332

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.

Financial Liabilities

The details of financial liabilities as of 30 June 2025 and 31 December 2024 are as follows:

Short term financial liabilities	30 June 2025	31 December 2024
Short term bank borrowings	47.926.320	172.048.659
	47.926.320	172.048.659