Pegasus Hava Tasimaciligi Anonim SirketiBIST: PGSUS

9/2025 IFRS Financial Statements

Nov 7, 2025 at 8:14 PM UTC · Issued by Pegasus Hava Tasimaciligi Anonim Sirketi

PEGASUS HAVA TAŞIMACILIĞI ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED

30 SEPTEMBER 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 ............................................ 11

NOTE 4 SEGMENT REPORTING ....................................................................................................................... 12

NOTE 5 RELATED PARTY TRANSACTIONS 12-13

NOTE 6 TRADE RECEIVABLES AND PAYABLES OTHER RECEIVABLES 13-14

NOTE 7 PREPAYMENTS, DEFERRED INCOME AND PASSENGER FLIGHT LIABILITIES...................... 15

NOTE 8 PROPERTY AND EQUIPMENT 16-17

NOTE 9 INTANGIBLE ASSETS .......................................................................................................................... 18

NOTE 10 RIGHT OF USE ASSETS ....................................................................................................................... 18

NOTE 11 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES .............................................................. 19

NOTE 12 COMMITMENTS. 20-21

NOTE 13 EXPENSES BY NATURE ...................................................................................................................... 22

NOTE 14 SHAREHOLDERS' EQUITY ................................................................................................................. 22

NOTE 15 REVENUE AND COST OF SALES ....................................................................................................... 23

NOTE 16 GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES...... 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 September	Prior Period 31 December
	Notes	2025	2024
ASSETS
Current assets		1.734.340.766	1.891.835.243
Cash and cash equivalents	27	1.036.708.210	1.258.979.406
Financial assets	22	370.627.684	302.048.311
Trade receivables	6	91.877.297	73.467.728
Trade receivables from third parties		91.877.297	73.467.728
Other receivables	6	15.018.230	2.892.392
Other receivables from third parties		15.018.230	2.892.392
Derivative financial instruments	21	-	3.963.837
Inventories		44.100.081	41.520.211
Prepayments	7	169.178.176	201.897.122
Current income tax assets		6.652.835	2.327.277
Other current assets		178.253	4.738.959
Non-Current assets		6.247.151.373	5.819.032.995
Financial assets	22	141.346.381	125.770.276
Other receivables	6	79.262.127	84.911.131
Other receivables from third parties		79.262.127	84.911.131
Investments accounted by using the equity method	3	20.719.664	21.115.937
Property and equipment	8	521.918.783	470.967.606
Intangible assets	9	31.903.634	24.046.619
Right of use assets	10	4.383.228.259	4.172.222.342
Prepayments	7	697.191.610	493.115.950
Deferred tax assets		371.580.915	426.883.134
TOTAL ASSETS		7.981.492.139	7.710.868.238

		Current Period 30 September	Prior Period 31 December
	Notes	2025	2024
LIABILITIES
Current liabilities		1.537.841.734	1.482.289.523
Short term borrowings	22	235.611.463	172.048.659
Short term portion of long term borrowings	22	60.430.537	218.212.572
Short term portion of long term lease liabilities	22	438.027.373	405.833.468
Trade payables	6	300.605.476	216.174.134
Trade payables to related parties	5	1.202.578	1.194.536
Trade payables to third parties		299.402.898	214.979.598
Employee benefit obligations		33.746.327	14.704.364
Other payables	6	21.149.898	12.519.590
Other payables to third parties		21.149.898	12.519.590
Contract liabilities	7	311.415.848	333.941.687
Derivative financial instruments	21	12.828.951	4.645.693
Deferred income	7	73.104.735	40.016.533
Short term provisions		50.921.126	64.192.823
Short term provisions for employee benefits		16.507.547	62.635.867
Other short term provisions		34.413.579	1.556.956
Non-Current liabilities		4.127.054.459	4.189.573.178
Long term borrowings	22	493.235.000	469.797.544
Long term lease liabilities	22	3.281.103.440	3.260.356.410
Derivative financial instruments	21	508.628	364.343
Deferred income	7	201.315.176	202.964.552
Long term provisions		150.892.215	256.090.329
Long term provisions for employee benefits		53.794.445	48.123.147
Other long term provisions		97.097.770	207.967.182
SHAREHOLDERS' EQUITY		2.316.595.946	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		(4.364.597)	(4.263.048)
to be reclassified to profit or loss
Currency translation differences	7.011.677		8.451.525
Hedge fund	(10.003.184)		(3.757.527)
Gain on financial assets measured at fair value	740.303		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	286.453.960		361.492.696
TOTAL LIABILITIES AND EQUITY	7.981.492.139		7.710.868.238

Profit or loss	Notes	Current Period 1 January- 30 September 2025	Prior Period 1 January- 30 September 2024	Current Period 1 July -30 September 2025	Prior Period 1 July -30 September 2024
Revenue	15	2.600.637.236	2.373.341.712	1.102.952.451	1.091.401.249
Cost of sales (-)	15	(2.096.205.703)	(1.806.420.840)	(776.161.032)	(692.605.390)
Gross profit		504.431.533	566.920.872	326.791.419	398.795.859
General administrative expenses (-)	16	(74.062.468)	(57.423.483)	(28.615.851)	(22.926.347)
Selling and marketing expenses (-)	16	(55.724.470)	(48.269.994)	(19.658.512)	(18.572.937)
Other operating income	17	324.106	422.705	(15.226)	136.209
Other operating expenses (-)	17	(141.914.696)	(19.136.331)	(14.811.688)	(26.543.964)
Operating profit		233.054.005	442.513.769	263.690.142	330.888.820
Income from investing activities	18	59.153.403	39.109.669	13.969.551	10.030.871
Expenses from investing activities (-)	18	(33.566)	(6.227.904)	(10.907)	(163.679)
Share of investments income accounted for using the equity method	3	2.388.623	1.812.701	860.155	575.724
Operating profit before financial expense		294.562.465	477.208.235	278.508.941	341.331.736
Financial income	19	240.062.051	46.775.852	26.086.476	66.231.680
Financial expense (-)	19	(190.395.728)	(201.549.475)	(61.623.251)	(71.702.094)
Profit/(loss) before tax		344.228.788	322.434.612	242.972.166	335.861.322
Tax income/(expense)		(57.774.828)	(12.213.485)	(16.311.426)	(34.677.098)
Deferred tax income/(expense)	26	(57.774.828)	(12.213.485)	(16.311.426)	(34.677.098)
Net profit for the period		286.453.960	310.221.127	226.660.740	301.184.224
Income/(loss) per share EUR cents	20	0,57	0,62	0,45	0,60
Other comprehensive income
Items not to be reclassified to profit or loss Actuarial (losses) / gains on defined benefit plans		(135.399)	(1.038.993)	141.858	(83.302)
Deferred tax effect Items to be reclassified to profit or loss Currency translation differences		33.850 (1.439.848)	259.748 127.496	(35.465) (42.249)	20.826 (628.090)
Gain on financial assets measured at fair value		(1.435.330)	1.362.458	(252.772)	1.822.699
Cash flow hedge		(8.327.543)	(7.966.004)	5.027.841	(23.583.951)
Deferred tax effect		2.440.719	1.650.886	(1.193.766)	5.440.313
Other comprehensive income / (expense)		(8.863.551)	(5.604.409)	3.645.447	(17.011.505)
Total comprehensive income / (expense)		277.590.409	304.616.718	230.306.187	284.172.719

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 SEPTEMBER 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	-	-	-	-	-	-	-	-	310.221.127	310.221.127
Other comprehensive income / (expense)	EUR	-	-	(779.245)	127.496	(5.974.503)	1.021.843	-	-	-	(5.604.409)
As at 30 September 2024	EUR	230.037.951	24.595.488	(4.033.347)	8.936.283	(9.965.365)	2.505.495	4.047.406	1.416.584.246	310.221.127	1.982.929.284
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	-	-	-	-	-	-	-	-	286.453.960	286.453.960
Other comprehensive income / (expense)	EUR	-	-	(101.549)	(1.439.848)	(6.245.657)	(1.076.497)	-	-	-	(8.863.551)
As at 30 September 2025	EUR	230.037.951	24.595.488	(4.364.597)	7.011.677	(10.003.184)	740.303	4.047.406	1.778.076.942	286.453.960	2.316.595.946

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 Prior Period 1 January- 1 January-
	Notes	30 September 2025 30 September 2024
A. CASH FLOWS FROM OPERATING ACTIVITIES
Income/(loss) for the period		286.453.960 310.221.127
Adjustments to reconcile the income/(loss)
Depreciation and amortization	8-9-10	306.698.333 249.382.550
Adjustments related with impairments		(1.096.926) 6.152.882
Provision for doubtful receivable		175.248 (75.022)
Adjustments related with financial investment impairments		(1.272.174) 6.227.904
Adjustments related with provisions		34.177.524 44.648.484
Provision for employee benefits		31.302.955 44.135.962
Legal provision		2.874.569 512.522
Interest and commission income		90.544.559 131.759.953
Adjustments related with fair value expense (income)		842.526 (1.645.733)
Adjustments related with fair value expense (income) of financial assets		842.526 (1.645.733)
Gain on equity investments accounted for using the equity method	3	(2.388.623) (1.812.701)
Current tax (income)/expense		57.774.828 12.213.485
Adjustments for (income)/expense caused by sale or changes in share of joint ventures		(1.138.222) -
Other provisions related with investing or financing activities		(38.455.949) (15.525.840)
Changes in working capital
Increase in trade receivables		(18.584.817) (29.521.619)
Increase in other receivables, prepayments and other assets		(49.637.930) (108.382.776)
Increase in inventories		(2.579.870) (4.065.707)
Increase in trade payables		84.431.342 56.521.035
Increase in deferred income, other payables and other current liabilities		(24.232.806) 118.271.390
Net cash generated from operating activities		722.807.929 768.216.530
Payment for the employee benefits provisions		(71.808.504) (27.642.310)
Payment for other provisions		(1.714.119) (27.747)
		649.285.306 740.546.473
B. CASH FLOWS FROM INVESTING ACTIVITIES
Net cash changes from acquisition and sale of debt instruments of other entities		(128.582.462) (2.624.554)
Net cash changes from purchase and
sale of property, equipment and intangible assets		(58.110.216) 63.582.380
Interest received from financial investment		46.097.030 33.062.751
Changes in cash advances and payables		(192.582.971) (141.583.462)
Other cash changes (*)		(866.286) 273.013.992
		(334.044.905) 225.451.107
C. CASH FLOWS FROM FINANCING ACTIVITIES
Increase in borrowings		296.200.607 556.110.541
Repayment of borrowings		(291.917.043) (346.613.064)
Repayment of principal in lease liabilities		(296.951.385) (256.813.807)
Interest and commission paid		(186.908.778) (196.293.675)
Interest received		47.847.740 36.443.069
		(431.728.859) (207.166.936)
NET DECREASE IN CASH AND CASH EQUIVALENTS
BEFORE TRANSLATION EFFECT (A+B+C)		(116.488.458) 758.830.644
D. TRANSLATION DIFFERENCES EFFECT ON CASH AND CASH EQUIVALENTS		(105.782.738) (15.102.303)
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D)		(222.271.196) 743.728.341
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	1.036.708.210 1.237.324.715
(*) The change in time deposits with a maturity of more than investments, has been presented.	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 September 2025 and 31 December 2024 are as follows:

	30 September 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 September 2025 is 9.223 (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 nine months ended 30 September 2025 were authorised for issue in accordance with a resolution of the Board of Directors on 7 November 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 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.

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 September 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.

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 30 September 2025 and 31 December 2024:

Ownership rate Country of registration and

Name of the company	Principal activity	30 September 2025	31 December 2024	operation
Pegasus Havacılık	Simulator technical
Teknolojileri ve	support and
Ticaret A.Ş.	maintenance	100%	100%	Türkiye
Pegasus Airlines
Innovation Lab, Inc.	Technology - R&D	100%	100%	USA
Pegasus Airlines
Ventures LP (*)	Technology - R&D	100%	0%	USA

(*) Pegasus Airlines Ventures LP, in which the Group holds a 100% ownership stake, was incorporated in the United States as of August 20, 2025, to evaluate investment opportunities in innovative technology and software solution ventures focused on the practical application of artificial intelligence in air transportation, with a capital amount of USD 1,000,000.

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

Ownership rate Country of

Principal

30 September

31 December

Ownership registration and

Name of the company

Pegasus Uçuş Eğitim

activity

Simulator

2025

2024

type

Joint

operation

Merkezi A.Ş. ("PUEM") (**)

Hitit Bilgisayar

training - 49,40%

Information system

solutions 36,20% 36,82%

venture Türkiye

Joint

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

Amendments IFRS 9 and IFRS 7 Regarding power purchase arrangements

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 to IFRS 19 Subsidiaries without Public Accountability: Disclosures

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.

Amendments IFRS 9 and IFRS 7 regarding 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. 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.

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

New and Amended Turkish Financial Reporting Standards (cont'd)
1. New and revised IFRSs in issue but not yet effective (cont'd)
  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
Annual reporting periods beginning on or after 1 January 2026.
Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures
The amendments cover new or amended IFRS Accounting Standards issued between 28 February 2021 and 1 May 2024 that were not considered when IFRS 19 was first issued. Annual reporting periods beginning on or after 1 January 2027.
Seasonality on Operations
Due to seasonality of air passenger transportation, it's expected to incur higher revenues in the second and third quarter of the year compared to the first and forth quarter. Besides, as a result of higher sales with the effect of summer season and growth in operations of the Company, trade receivables increased as of 30 September 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 September 2025

31 December 2024

Joint ventures

Hitit Bilgisayar

20.719.664

21.115.937

20.719.664

21.115.937

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

	1 January- 30 September 2025	1 January- 30 September 2024	1 July - 30 September 2025	1 July - 30 September 2024
Hitit Bilgisayar	2.388.623	1.930.198	860.155	649.892
PUEM	-	(117.497)	-	(74.168)
Net profit	2.388.623	1.812.701	860.155	575.724

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

Hitit Bilgisayar
	30 September 2025	31 December 2024
Current assets	21.274.365	24.590.146
Non-current assets	49.143.983	46.605.202
Current liabilities	(9.025.976)	(10.381.617)
Non-current liabilities	(4.442.245)	(3.781.199)
Net assets of joint venture	56.950.127	57.032.532
Group's ownership interest in the joint venture	36,20%	36,82%
Goodwill	103.718	116.559
Group's share in the net assets of the joint venture	20.719.664	21.115.937
	1 January- 30 September 2025	1 January- 30 September 2024
Revenue	27.864.050	22.312.371
Depreciation and amortisation expense	(5.683.836)	(4.091.862)
Interest income/(expense), net	3.162.742	729.344
Profit for the year	6.487.297	5.242.253
Group's weighted average ownership interest	36,82%	36,82%
Group's share in the net profit of the joint venture	2.388.623	1.930.198

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.

(i) Balances with Related Parties:
a) Trade payables to related parties	30 September 2025	31 December 2024
Balances with joint ventures: Hitit Bilgisayar	1.070.596	1.078.540
Balances with other related parties: Esasburda İnşaat Sanayi ve Ticaret A.Ş. ("Esasburda")	6.180	25.774
Ere Avm İnşaat A.Ş. ("Ere Avm")	125.802	90.222
	1.202.578	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- 30 September 2025	1 January- 30 September 2024	1 July - 30 September 2025	1 July - 30 September 2024
Transactions with joint ventures:
Hitit Bilgisayar	6.442.400	5.377.226	2.137.532	1.923.618
Transactions with other related parties:
Ere Avm	1.131.125	-	251.725	-
Esasburda	105.424	492.242	-	183.298
Alarm Sağlık	-	22.946	-	5.451
Other	1.941	262	1.941	-
	7.680.890	5.892.676	2.391.198	2.112.367

NOTE 5 - RELATED PARTY TRANSACTIONS (cont'd)

Significant Transactions with Related Parties: (cont'd)

Lease expenses

1 January-

30 September 2025

1 January-

30 September 2024

1 July -

30 September 2025

1 July -

30 September 2024

Esasburda (*) -

317.004

(*) 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 September 2025 and 30 September 2024 are as follows:

1 January-

30 September 2025

1 January-

30 September 2024

1 July -

30 September 2025

1 July -

30 September 2024

Salaries and benefits 13.682.980

4.582.576

4.731.047

456.020

13.682.980

4.582.576

4.731.047

456.020

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

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

	30 September 2025	31 December 2024
Trade receivables	52.977.069	41.528.451
Credit card receivables	41.264.240	32.630.019
Income accruals	1.555.853	3.310.224
	95.797.162	77.468.694
Allowance for credit risk adjustment under TFRS 9	(3.919.865)	(4.000.966)
	91.877.297	73.467.728

The average collection period of trade receivables is approximately 16 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 September 2025 and 31 December 2024 are as follows:

	30 September 2025	31 December 2024
Trade payables	80.392.874	132.529.077
Accrued direct operational costs	219.010.024	82.450.521
Trade payables to related parties (Note 5)	1.202.578	1.194.536
	300.605.476	216.174.134

The average payment period of trade payables is approximately 32 days (31 December 2024: 30 days).

Short term other receivables

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

	30 September 2025	31 December 2024
Deposits and guarantees given (*)	6.405.552	1.415.373
Receivables from pilots for flight training	5.468.929	284.615
Receivables from tax office	726.971	724.261
Other receivables	2.416.778	468.143
	15.018.230	2.892.392

(*) The amount of EUR 4.929.800 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 September 2025 and 31 December 2024 are as follows:

	30 September 2025	31 December 2024
Receivables from pilot trainings	39.430.520	42.738.065
Deposits given	39.831.607	42.173.066
	79.262.127	84.911.131
Short term other payables	30 September 2025	31 December 2024
Taxes payables	13.019.297	10.170.687
Deposits received	8.130.601	2.348.903
	21.149.898	12.519.590

NOTE 7 - PREPAYMENTS, DEFERRED INCOME AND CONTRACT LIABILITIES

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

Short term prepayments

	30 September 2025	31 December 2024
Advances on aircraft purchases	70.551.679	122.857.877
Advances to suppliers	87.197.873	51.230.811
Prepaid insurance expenses	4.604.524	18.002.352
Other prepaid expenses	6.824.100	9.806.082
	169.178.176	201.897.122
Long term prepayments	30 September 2025	31 December 2024
Advances on aircraft purchases	137.972.024	57.215.071
Prepaid maintenance expenses	559.207.392	435.654.062
Other prepaid expenses	12.194	246.817
	697.191.610	493.115.950

Deferred Income Contract Liabilities

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

	30 September 2025	31 December 2024
Flight liability from ticket sales	194.454.317	218.926.889
Passenger airport fees received from customers (*)	73.716.567	73.165.429
Flight liability from flight points	43.244.964	41.849.369
	311.415.848	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 September 2025	31 December 2024
Advances received from customers	40.178.538	27.513.947
Other deferred income	32.926.197	12.502.586
	73.104.735	40.016.533
Long term deferred income	30 September 2025	31 December 2024
Deferred income (**)	201.315.176	202.964.552
	201.315.176	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 September 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 995.085	2.376.109	4.502.740	5.360	68.696.389	362.353	34.766.588	111.704.624
Transfers (*) -	-	-	-	(22.190.061)	-	-	(22.190.061)
Closing 36.476.800	29.872.395	45.671.559	13.827.027	419.964.962	286.512.736	44.190.842	876.516.321
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 (1.755.600)	(2.135.323)	(2.371.226)	(75.988)	(21.755.824)	(10.469.425)	-	(38.563.386)
Closing (16.851.958)	(12.287.266)	(31.830.899)	(13.434.602)	(124.078.889)	(156.113.924)	-	(354.597.538)
Net book value 19.624.842	17.585.129	13.840.660	392.425	295.886.073	130.398.812	44.190.842	521.918.783

(*) 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 September 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	1.104.658	2.555.449	4.525.974	95.888	161.387.839	5.847.917	512.453	176.030.178
Transfers (*)	-	-	-	-	(31.750.976)	-	-	(31.750.976)
Closing	34.987.128	24.578.232	40.628.665	13.562.046	334.689.608	281.473.607	8.583.559	738.502.845
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	(1.643.061)	(1.460.735)	(2.135.952)	(66.437)	(15.252.905)	(9.731.158)	-	(30.290.248)
Closing	(14.525.427)	(10.304.538)	(28.749.269)	(13.340.227)	(96.829.607)	(142.175.399)	-	(305.924.467)
Net book value	20.461.701	14.273.694	11.879.396	221.819	237.860.001	139.298.208	8.583.559	432.578.378

(*) 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 September 2025			30 September 2024
Cost: Opening		64.273.293			52.619.528
Additions		14.875.749			7.450.473
Closing		79.149.042			60.070.001
Accumulated amortization:
Opening		(40.226.674)			(32.864.322)
Amortization for the year		(7.018.734)			(5.484.499)
Closing		(47.245.408)			(38.348.821)
Net book value		31.903.634			21.721.180
NOTE 10 - RIGHT OF USE ASSETS
30 September 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	10.581.580	-	508.772.742	-	519.354.322
Disposals (*)	-	-	(74.052.284)	-	(74.052.284)
Closing	25.152.362	24.733.613	5.654.292.539	311.363	5.704.489.877
Accumulated depreciation: Opening	(13.340.574)	(396.120)	(1.072.917.440)	(311.363)	(1.086.965.497)
Depreciation for the period	(2.284.981)	(463.755)	(258.367.477)	-	(261.116.213)
Disposals (*)	-	-	26.820.092	-	26.820.092
Closing	(15.625.555)	(859.875)	(1.304.464.825)	(311.363)	(1.321.261.618)
Net book value	9.526.807	23.873.738	4.349.827.714	-	4.383.228.259
(*) Aircraft which are sold presented as disposals.
30 September 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		-	24.066.431	723.332.152	-	747.398.583
Disposals (*)		-	(7.785.815)	(413.719.549)	-	(421.505.364)
Closing		14.570.782	24.066.430	4.862.414.693	311.363	4.901.363.268
Accumulated depreciation:
Opening		(11.292.007)	(4.952.114)	(1.074.263.186)	(311.363)	(1.090.818.670)
Depreciation for the period		(2.363.588)	(740.995)	(210.503.218)	-	(213.607.801)
Disposals (*)		-	6.451.103	277.274.312	-	283.725.415
Transfers		1.001.744	(1.001.744)	-	-	-
Closing		(12.653.851)	(243.750)	(1.007.492.092)	(311.363)	(1.020.701.056)
Net book value		1.916.931	23.822.680	3.854.922.601	-	3.880.662.212

(*) 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

4.669.129 as of 30 September 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 2.206.511 (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 September 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 September 30, 2025.

NOTE 12 - COMMITMENTS
Purchase Commitments	30 September 2025	31 December 2024
Commitments to purchase aircraft	24.734.943.062	29.164.611.749
	24.734.943.062	29.164.611.749

As of 30 September 2025, the Group holds the right to purchase 143 aircraft on firm order. In accordance with agreement the expected deliveries are 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 208.523.704 (31 December 2024: EUR 180.072.948). Of this amount, EUR 70.551.679 is reclassified as short-term, and EUR 137.972.024 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 September 2025 is as follows:

30 September 2025	EUR TOTAL	USD	EUR	TL	Other
A. Total amounts of CPM given on behalf of its own
legal entity
-Collateral	50.519.070	22.456.235	27.177.460	27.307.070	3.624.317
-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	-	-	-	-	-
	50.519.070	22.456.235	27.177.460	27.307.070	3.624.317

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 September 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 September 2025 and 30 September 2024 are as follows:

	1 January- 30 September 2025	1 January- 30 September 2024	1 July - 30 September 2025	1 July - 30 September 2024
Jet fuel expenses	662.887.140	671.302.439	252.350.652	243.922.370
Personnel expenses	459.455.501	354.496.586	161.490.638	158.787.414
Depreciation and amortisation expenses	306.698.333	249.382.548	108.086.170	85.722.536
Handling and station fees	192.382.583	162.703.478	74.068.406	63.523.167
Navigation expenses	172.774.752	132.632.765	67.873.797	51.560.032
Maintenance expenses	90.522.447	80.619.737	31.961.566	28.005.248
Landing expenses	93.788.878	76.019.426	35.133.657	29.425.653
Passenger service and catering expenses	33.420.057	27.052.803	12.321.349	12.220.171
Advertising expenses	18.905.276	13.769.647	6.778.603	3.734.591
Commission expenses	18.317.247	18.703.819	6.839.499	8.829.014
Short term operational lease expenses	19.606.789	1.222.828	16.085.446	13.679
Other expenses	157.233.638	124.208.241	51.445.612	48.360.799
	2.225.992.641	1.912.114.317	824.435.395	734.104.674

NOTE 14 - SHAREHOLDERS' EQUITY

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

30 September 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 September 2025 and 30 September 2024 are as follows:

Revenue:	1 January-	1 January-	1 July -	1 July -
	30 September 2025	30 September 2024	30 September 2025	30 September 2024
Scheduled flight and service revenue	2.562.510.649	2.329.145.183	1.085.819.307	1.069.780.036
International flight revenue	1.267.858.242	1.240.462.653	570.388.939	606.863.778
Domestic flight revenue	351.793.668	310.461.681	152.197.549	144.900.747
Service revenue	942.858.739	778.220.849	363.232.819	318.015.511
Charter flight and service revenue	31.099.705	36.347.990	15.974.990	18.731.523
Charter flight revenue	31.099.705	36.347.990	15.974.990	18.731.523
Other revenue 7.026.882		7.848.539	1.158.154	2.889.690
2.600.637.236		2.373.341.712	1.102.952.451	1.091.401.249

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 September 2025	1 January- 30 September 2024	1 July - 30 September 2025	1 July - 30 September 2024
Europe	974.571.678	937.072.074	471.338.272	484.340.899
Domestic	351.793.668	310.461.681	152.197.549	144.900.747
Other	293.286.564	303.390.579	99.050.667	122.522.879
	1.619.651.910	1.550.924.334	722.586.488	751.764.525
Cost of sales:	1 January-	1 January-	1 July -	1 July -
	30 September 2025	30 September 2024	30 September 2025	30 September 2024
Jet fuel expenses	662.887.140	671.302.439	252.350.652	243.922.370
Personnel expenses	424.996.338	327.909.342	149.378.840	146.878.358
Depreciation and amortisation expenses	292.870.789	238.353.574	103.272.149	81.876.692
Handling and station fees	192.382.583	162.703.478	74.068.406	63.523.167
Navigation expenses	172.774.752	132.632.765	67.873.797	51.560.032
Maintenance expenses	90.522.447	80.619.737	31.961.566	28.005.248
Landing expenses	93.788.878	76.019.426	35.133.657	29.425.653
Passenger service and catering expenses	33.420.057	27.052.803	12.321.349	12.220.171
Insurance expenses	15.375.367	14.479.156	5.189.409	4.866.907
Short term lease expenses	19.606.789	1.222.828	17.670.051	13.679
Other expenses	97.580.563	74.125.292	26.941.156	30.313.113
	2.096.205.703	1.806.420.840	776.161.032	692.605.390

NOTE 16 - GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES

	1 January- 30 September 2025	1 January- 30 September 2024	1 July - 30 September 2025	1 July - 30 September 2024
General administrative expenses	74.062.468	57.423.483	28.615.851	22.926.347
Marketing expenses	55.724.470	48.269.994	19.658.512	18.572.937
	129.786.938	105.693.477	48.274.363	41.499.284

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

General administrative expenses:

	1 January- 30 September 2025	1 January- 30 September 2024	1 July - 30 September 2025	1 July - 30 September 2024
Personnel expenses	25.270.053	19.497.312	8.881.985	8.733.307
IT expenses	19.321.282	15.165.117	7.174.906	5.682.981
Depreciation and amortisation expenses	11.062.035	8.823.179	3.851.217	3.076.675
Consultancy expenses	5.101.286	4.154.393	1.947.950	1.460.666
Office utility expenses	1.743.916	1.577.722	572.660	589.520
Legal and notary expenses	4.530.835	2.159.030	3.106.577	1.262.648
Communication expenses	1.520.138	1.909.899	757.916	550.664
Travel expenses	2.830.239	2.516.813	1.632.058	1.321.193
Training expenses	317.035	216.976	100.829	139.413
Other expenses	2.365.649	1.403.042	589.753	109.280
	74.062.468	57.423.483	28.615.851	22.926.347
Marketing expenses:
	1 January-	1 January-	1 July -	1 July -
	30 September 2025	30 September 2024	30 September 2025	30 September 2024
Advertising expenses	18.905.276	13.769.647	6.778.603	3.734.591
Commission expenses	18.317.247	18.703.819	6.839.499	8.829.014
Personnel expenses	9.189.110	7.089.932	3.229.813	3.175.749
Call center expenses	4.532.156	4.440.030	1.242.040	1.379.630
Depreciation and amortisation expenses	2.765.509	2.205.795	962.804	769.169
Other expenses	2.015.172	2.060.771	605.753	684.784
	55.724.470	48.269.994	19.658.512	18.572.937

NOTE 17 - OTHER OPERATING INCOME AND EXPENSES

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

Other operating income:

	1 January- 30 September 2025	1 January- 30 September 2024	1 July - 30 September 2025	1 July - 30 September 2024
Reversal of doubtful cash and cash equivalents	301.616	-	(37.716)	-
Reversal of doubtful provision	22.490	-	22.490	-
Other	-	422.705	-	136.209
	324.106	422.705	(15.226)	136.209
Other operating expenses:	1 January-	1 January-	1 July -	1 July -
	30 September 2025	30 September 2024	30 September 2025	30 September 2024
Foreign exchange loss from operating activities, net	134.657.589	14.492.137	13.082.002	23.758.166
Legal provision and penalty expense	3.505.895	274.454	192.392	(7.322)
Doubtful receivable allowance expense	-	481.383	13.855	431.312
Trade receivables allowance expense	377.561	233.149	(147.983)	(6.220)
Cash and cash equivalents allowance expense	-	447.569	-	327.071
Other	3.373.651	3.207.639	1.671.422	2.040.957
	141.914.696	19.136.331	14.811.688	26.543.964

NOTE 18 - INCOME AND EXPENSES FROM INVESTING ACTIVITIES

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

Income from investing activities:
	1 January- 30 September 2025	1 January- 30 September 2024	1 July - 30 September 2025	1 July - 30 September 2024
Interest income from time deposits	22.574.387	14.425.304	358.074	4.592.236
Gain arising from aircraft sale	6.991.027	6.493.452	-	-
Interest income from eurobond	26.066.841	16.919.725	12.461.629	5.330.776
Gain on sale of joint venture shares	1.138.222	-	1.138.222	-
Gain from eurobond sales (*)	737.609	1.186.883	324.240	107.859
Income from sale of fixed assets	1.272.174	-	(394.948)	-
Other income	373.143	84.305	82.334	-
	59.153.403	39.109.669	13.969.551	10.030.871

(*) 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- 30 September 2025	1 January- 30 September 2024	1 July - 30 September 2025	1 July - 30 September 2024
Loss from eurobond sales	33.566	-	10.907	-
Financial investments allowance expense	-	6.227.904	-	163.679
	33.566	6.227.904	10.907	163.679

NOTE 19 - FINANCIAL INCOME AND EXPENSES

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

Financial income:	1 January-	1 January-	1 July -	1 July -
	30 September 2025	30 September 2024	30 September 2025	30 September 2024
Foreign exchange gain, net	194.714.534	11.129.252	11.172.064	52.498.172
Interest income	45.347.517	35.646.600	14.914.412	13.733.508
	240.062.051	46.775.852	26.086.476	66.231.680
Financial expenses:	1 January-	1 January-	1 July -	1 July -
	30 September 2025	30 September 2024	30 September 2025	30 September 2024
Interest expense on leases	113.663.095	127.056.912	35.285.130	41.575.819
Interest expense on issued debt instruments	30.652.560	22.197.083	10.502.118	6.193.411
Commission and other expenses	31.249.975	36.039.109	10.312.907	17.105.883
Losses from derivative contracts	5.862.424	2.797.894	1.235.571	3.973.354
Interest expense on bank loans	8.967.674	13.458.477	4.287.525	2.853.627
	190.395.728	201.549.475	61.623.251	71.702.094

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 September 2025 and 30 September 2024 are as follows:

	1 January- 30 September 2025	1 January- 30 September 2024	1 July - 30 September 2025	1 July - 30 September 2024
Net profit	286.453.960	310.221.127	226.660.740	301.184.224
Weighted average number of shares issued in the year	500.000.000	500.000.000	500.000.000	500.000.000
Income per share	0,57	0,62	0,45	0,60

NOTE 21 - DERIVATIVE FINANCIAL INSTRUMENTS Fair Value of Derivative Instruments

30 September 2025 31 December 2024

	Asset	Liability	Asset	Liability
Short term	-	12.828.951	3.963.837	4.645.693
Long term	-	508.628	-	364.343
	-	13.337.579	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 September 2025	31 December 2024
Financial investments measured at amortized cost			246.479.570	172.455.687
Financial assets recognized at fair value through profit or loss			94.082.985	101.104.332
Time deposit (*)			30.301.348	28.842.985
Less: Allowance for impairment under IFRS 9			(236.219)	(354.693)
			370.627.684	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 September 2025	31 December 2024
Financial investments measured at amortized cost	143.262.916	129.950.216
Less: Allowance for impairment under IFRS 9	(1.916.535)	(4.179.940)
	141.346.381	125.770.276
Financial investments accounted at amortized cost
	30 September 2025	31 December 2024
Short term financial investments measured at amortized cost	246.479.570	172.455.687
Long term financial investments measured at amortized cost	143.262.916	129.950.216
	389.742.486	302.405.903
	30 September 2025	31 December 2024
Government Debt Securities	142.249.001	192.939.473
Corporate Debt Securities	247.493.485	109.466.430
	389.742.486	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 September 2025 and 31 December 2024 are as follows:

	Weighted average Coupon Interest Rate (%)	FX Type	Asset Value EUR
Government Debt Securities	7,5	US Dollar	124.705.310
Government Debt Securities	6,2	GBP	17.543.691
Corporate Debt Securities	6,4	US Dollar	216.166.396
Corporate Debt Securities	5,9	Euro	25.467.349
Corporate Debt Securities	6,2	GBP	5.859.740
30 September 2025			389.742.486
	Weighted average
	Coupon Interest Rate (%)	FX Type	Asset Value EUR
Government Debt Securities	7,6	US Dollar	180.234.119
Government Debt Securities	6,7	GBP	12.705.354
Corporate Debt Securities	7,2	US Dollar	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 September 2025	31 December 2024
Government Debt Securities	84.401.139	72.038.270
Corporate Debt Securities	9.681.846	29.066.062
	94.082.985	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	7,9	US Dollar	84.401.139
Corporate Debt Securities	7,7	US Dollar	9.681.846
30 September 2025			94.082.985
	Weighted average Coupon Interest Rate (%)	FX Type	Asset Value EUR
Government Debt Securities	8,4	US Dollar	72.038.270
Corporate Debt Securities	8,1	US Dollar	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 September 2025 and 31 December 2024 are as follows:

Short term financial liabilities	30 September 2025	31 December 2024
Short term bank borrowings	235.611.463	172.048.659
	235.611.463	172.048.659