Pegasus Hava Tasimaciligi Anonim SirketiBIST: PGSUS

9/2025 TFRS Financial Statements

· Issued by Pegasus Hava Tasimaciligi Anonim Sirketi

(CONVENIENCE TRANSLATION OF

THE REPORT AND FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)

PEGASUS HAVA TAŞIMACILIĞI ANONİM ŞİRKETİ AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE 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 3-4 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 5-6 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS........................................ 7 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 8-44

NOTE 1 ORGANIZATION AND OPERATIONS OF THE GROUP ................................................................... 8

NOTE 2 BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS 8-13

NOTE 3 INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD ............................................ 14

NOTE 4 SEGMENT REPORTING ....................................................................................................................... 15

NOTE 5 RELATED PARTY TRANSACTIONS 15-16

NOTE 6 TRADE RECEIVABLES AND PAYABLES OTHER RECEIVABLES 16-17

NOTE 7 PREPAYMENTS, DEFERRED INCOME AND PASSENGER FLIGHT LIABILITIES...................... 18

NOTE 8 PROPERTY AND EQUIPMENT 19-20

NOTE 9 INTANGIBLE ASSETS .......................................................................................................................... 21

NOTE 10 RIGHT OF USE ASSETS 21-22

NOTE 11 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES 22-23

NOTE 12 COMMITMENTS. 23-25

NOTE 13 EXPENSES BY NATURE ...................................................................................................................... 26

NOTE 14 SHAREHOLDERS' EQUITY ................................................................................................................. 26

NOTE 15 REVENUE AND COST OF SALES ....................................................................................................... 27

NOTE 16 GENERAL ADMINISTRATIVE EXPENSES AND SELLING AND MARKETING EXPENSES...... 28

NOTE 17 OTHER OPERATING INCOME AND EXPENSES .............................................................................. 29

NOTE 18 INCOME AND EXPENSES FROM INVESTING ACTIVITIES........................................................... 29

NOTE 19 FINANCIAL INCOME AND EXPENSES ............................................................................................. 30

NOTE 20 EARNINGS PER SHARE ....................................................................................................................... 30

NOTE 21 DERIVATIVE FINANCIAL INSTRUMENTS ...................................................................................... 31

NOTE 22 FINANCIAL INSTRUMENTS 31-35

NOTE 23 NATURE AND LEVEL OF RISKS DERIVING FROM FINANCIAL INSTRUMENTS 35-38

NOTE 24 FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES) 39-42

NOTE 25 EVENTS AFTER REPORTING PERIOD .............................................................................................. 42

NOTE 26 INCOME TAX EXPENSE ...................................................................................................................... 43

NOTE 27 EXPLANATIONS RELATED TO STATEMENT OF CASH FLOW.................................................... 44

APPENDIX - EURO SELECTED NOTES 45

Current Period

(Not Reviewed) TL 30 September

Prior Period

(Audited) TL 31 December

(*)

EUR

30 September

(*)

EUR

31 December

Notes 2025

2024

2025

2024

ASSETS

Current assets

84.372.036.149

69.511.513.150

1.734.340.766

1.891.835.243

Cash and cash equivalents

27 50.433.677.329

46.258.554.416

1.036.708.210

1.258.979.406

Financial assets

22 18.030.258.508

11.098.130.886

370.627.684

302.048.311

Trade receivables

6 4.469.637.556

2.699.417.383

91.877.297

73.467.728

Trade receivables from third parties

4.469.637.556

2.699.417.383

91.877.297

73.467.728

Other receivables

6 730.605.351

106.274.871

15.018.230

2.892.392

Other receivables from third parties

730.605.351

106.274.871

15.018.230

2.892.392

Derivative financial instruments

21 -

145.642.867

-

3.963.837

Inventories

2.145.376.330

1.525.572.961

44.100.081

41.520.211

Prepaid expenses

7 8.230.162.989

7.418.285.764

169.178.176

201.897.122

Current income tax assets

323.646.452

85.510.906

6.652.835

2.327.277

Other current assets

8.671.634

174.123.096

178.253

4.738.959

Non-Current assets

303.910.943.856

213.808.263.691

6.247.151.373

5.819.032.995

Financial assets

22 6.876.204.608

4.621.164.674

141.346.381

125.770.276

Other receivables

6 3.855.936.028

3.119.881.195

79.262.127

84.911.131

Other receivables from third parties

3.855.936.028

3.119.881.195

79.262.127

84.911.131

Investments accounted by using the equity method

3 1.007.968.150

775.860.767

20.719.664

21.115.937

Property and equipment

8 25.390.401.334

17.304.831.905

521.918.783

470.967.606

Intangible assets

9 1.552.044.796

883.542.517

31.903.634

24.046.619

Right of use assets

10 213.234.850.021

153.299.548.290

4.383.228.259

4.172.222.342

Prepaid expenses

7 33.916.907.724

18.118.510.039

697.191.610

493.115.950

Deferred tax assets

18.076.631.195

15.684.924.304

371.580.915

426.883.134

TOTAL ASSETS

388.282.980.005

283.319.776.841

7.981.492.139

7.710.868.238

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

Current Period

(Not Reviewed) TL 30 September

Prior Period

(Audited) TL 31 December

(*)

EUR

30 September

(*)

EUR

31 December

Notes 2025

2024

2025

2024

LIABILITIES

Current liabilities

74.812.770.893

54.463.615.723

1.537.841.734

1.482.289.523

Short term borrowings

22 11.462.002.891

6.321.566.673

235.611.463

172.048.659

Short term portion of long term borrowings

22 2.939.818.721

8.017.762.712

60.430.537

218.212.572

Short term portion of long term lease liabilities

22 21.309.111.839

14.911.498.531

438.027.373

405.833.468

Trade payables

6 14.623.825.136

7.942.864.589

300.605.476

216.174.134

Trade payables to related parties

5 58.502.894

43.890.717

1.202.578

1.194.536

Trade payables to third parties

14.565.322.242

7.898.973.872

299.402.898

214.979.598

Employee benefit obligations

1.641.687.942

540.280.976

33.746.327

14.704.364

Other payables

6 1.028.898.123

460.006.050

21.149.898

12.519.590

Other payables to third parties

1.028.898.123

460.006.050

21.149.898

12.519.590

Contract liabilities

7 15.149.727.045

12.269.986.013

311.415.848

333.941.687

Derivative financial instruments

21 624.101.525

170.696.233

12.828.951

4.645.693

Deferred income

7 3.556.391.825

1.470.323.469

73.104.735

40.016.533

Short term provisions

2.477.205.846

2.358.630.477

50.921.126

64.192.823

Short term provisions for employee benefits

803.057.496

2.301.423.398

16.507.547

62.635.867

Other short term provisions

1.674.148.350

57.207.079

34.413.579

1.556.956

Non-Current liabilities

200.772.532.617

153.937.068.322

4.127.054.459

4.189.573.178

Long term borrowings

22 23.994.846.956

17.261.724.196

493.235.000

469.797.544

Long term lease liabilities

22 159.618.792.040

119.794.949.520

3.281.103.440

3.260.356.410

Derivative financial instruments

21 24.743.684

13.387.018

508.628

364.343

Deferred income

7 9.793.560.551

7.457.506.238

201.315.176

202.964.552

Long term provisions

7.340.589.386

9.409.501.350

150.892.215

256.090.329

Long term provisions for employee benefits

2.616.986.781

1.768.183.978

53.794.445

48.123.147

Other long term provisions

4.723.602.605

7.641.317.372

97.097.770

207.967.182

SHAREHOLDERS' EQUITY

112.697.676.495

74.919.092.796

2.316.595.946

2.039.005.537

Paid-in share capital

14 500.000.000

500.000.000

230.037.951

230.037.951

Share premiums on capital stock Other comprehensive income/expense not to be reclassified to profit or loss

57.986.732

57.986.732

24.595.488

24.595.488

Actuarial losses on defined benefit plans

(212.328.478)

(156.636.746)

(4.364.597)

(4.263.048)

Currency translation differences Other comprehensive income/expense

to be reclassified to profit or loss

59.292.701.032

34.562.833.340

-

-

Currency translation differences

571.937.514

414.885.536

7.011.677

8.451.525

Hedge fund

(486.633.895)

(138.062.439)

(10.003.184)

(3.757.527)

Gain on financial assets measured at fair value

36.014.186

66.754.501

740.303

1.816.800

Restricted profit reserves

20.459.941

20.459.941

4.047.406

4.047.406

Retained earnings

39.590.871.931

26.305.434.254

1.778.076.942

1.416.584.246

Net income for the period

13.326.667.532

13.285.437.677

286.453.960

361.492.696

TOTAL LIABILITIES AND EQUITY

388.282.980.005

283.319.776.841

7.981.492.139

7.710.868.238

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

Profit or loss

Notes

Current Period (Not Reviewed) TL

1 January-

30 September 2025

Prior Period (Not Reviewed) TL

1 January-

30 September 2024

Current Period (Not Reviewed) TL

1 July -

30 September 2025

Prior Period (Not Reviewed) TL

1 July -

30 September 2024

(*) EUR

1 January-

30 September 2025

(*) EUR

1 January-

30 September 2024

(*) EUR

1 July -

30 September 2025

(*) EUR

1 July -

30 September 2024

Sales

15

114.405.094.895

84.046.387.728

52.392.024.842

40.082.452.433

2.600.637.236

2.373.341.712

1.102.952.451

1.091.401.249

Cost of sales (-)

15

(91.787.387.656)

(63.773.878.459)

(36.992.351.792)

(25.661.742.944)

(2.096.205.703)

(1.806.420.840)

(776.161.032)

(692.605.390)

Gross profit

22.617.707.239

20.272.509.269

15.399.673.050

14.420.709.489

504.431.533

566.920.872

326.791.419

398.795.859

General administrative expenses (-)

16

(3.194.740.789)

(2.005.770.628)

(1.334.361.184)

(841.595.866)

(74.062.468)

(57.423.483)

(28.615.851)

(22.926.347)

Marketing expenses (-)

16

(2.427.117.732)

(1.708.157.251)

(922.429.180)

(694.750.241)

(55.724.470)

(48.269.994)

(19.658.512)

(18.572.937)

Other operating income

17

16.100.637

14.131.779

(469.403)

4.789.421

324.106

422.705

(15.226)

136.209

Other operating expenses (-)

17

(6.139.166.617)

(667.061.368)

(953.917.699)

(922.157.432)

(141.914.696)

(19.136.331)

(14.811.688)

(26.543.964)

Operating profit

10.872.782.738

15.905.651.801

12.188.495.584

11.966.995.371

233.054.005

442.513.769

263.690.142

330.888.820

Income from investing activities

18

2.569.892.849

1.440.867.750

703.627.773

411.183.497

59.153.403

39.109.669

13.969.551

10.030.871

Expenses from investing activities (-)

18

(1.499.897)

(238.182.318)

(509.707)

(24.644.845)

(33.566)

(6.227.904)

(10.907)

(163.679)

Share of investments income accounted for

using the equity method

3

103.196.017

63.505.152

40.717.817

21.295.636

2.388.623

1.812.701

860.155

575.724

Operating profit before financial expense

13.544.371.707

17.171.842.385

12.932.331.467

12.374.829.659

294.562.465

477.208.235

278.508.941

341.331.736

Financial income

19

10.491.507.258

1.626.368.421

1.628.972.563

2.288.516.613

240.062.051

46.775.852

26.086.476

66.231.680

Financial expense (-)

19

(8.213.157.536)

(7.050.049.420)

(2.931.291.916)

(2.644.844.210)

(190.395.728)

(201.549.475)

(61.623.251)

(71.702.094)

Profit/(loss) before tax

15.822.721.429

11.748.161.386

11.630.012.114

12.018.502.062

344.228.788

322.434.612

242.972.166

335.861.322

Tax income/(expense)

(2.496.053.897)

(427.880.382)

(801.181.735)

(1.194.408.715)

(57.774.828)

(12.213.485)

(16.311.426)

(34.677.098)

Deferred tax income/(expense)

26

(2.496.053.897)

(427.880.382)

(801.181.735)

(1.194.408.715)

(57.774.828)

(12.213.485)

(16.311.426)

(34.677.098)

Profit for the period

13.326.667.532

11.320.281.004

10.828.830.379

10.824.093.347

286.453.960

310.221.127

226.660.740

301.184.224

Income/(loss) per share (TL) / (EUR)

20

26,65

22,64

21,66

21,65

0,57

0,62

0,45

0,60

Other comprehensive income

Current Period

(Not Reviewed) TL

1 January-

30 September 2025

Prior Period

(Not Reviewed) TL

1 January-

30 September 2024

Current Period

(Not Reviewed) TL

1 July -

30 September 2025

Prior Period

(Not Reviewed) TL

1 July -

30 September 2024

(*)

EUR

1 January-

30 September 2025

(*)

EUR

1 January-

30 September 2024

(*)

EUR

1 July -

30 September 2025

(*)

EUR

1 July -

30 September 2024

Items not to be reclassified to profit or loss

Actuarial (losses) / gains on defined benefit plans

(74.255.660)

(63.121.323)

(5.589.687)

(18.465.975)

(135.399)

(1.038.993)

141.858

(83.302)

Deferred tax effect

18.563.915

15.780.331

1.397.422

4.616.494

33.850

259.748

(35.465)

20.826

Currency translation differences

24.729.867.692

9.561.588.697

4.566.523.552

5.471.373.177

-

-

-

-

Items to be reclassified to profit or loss

Currency translation differences

157.051.978

85.345.902

36.841.932

25.671.221

(1.439.848)

127.496

(42.249)

(628.090)

Gain on financial assets measured at fair value

(40.987.100)

62.567.471

(9.698.982)

73.681.673

(1.435.330)

1.362.458

(252.772)

1.822.699

Cash flow hedge

(464.761.958)

(331.820.400)

206.112.842

(866.861.028)

(8.327.543)

(7.966.004)

5.027.841

(23.583.951)

Deferred tax effect

126.437.300

67.313.198

(49.103.413)

198.294.845

2.440.719

1.650.886

(1.193.766)

5.440.313

Other comprehensive income / (expense)

24.451.916.167

9.397.653.876

4.746.483.666

4.888.310.407

(8.863.551)

(5.604.409)

3.645.447

(17.011.505)

Total comprehensive income / (expense)

37.778.583.699

20.717.934.880

15.575.314.045

15.712.403.754

277.590.409

304.616.718

230.306.187

284.172.719

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

Other comprehensive income items

not to be reclassified to profit or loss

Other comprehensive income items

to be reclassified to profit or loss

Retained earnings

Paid in share capital

Share premiums on

capital stock

Actuarial

gains/(losses) on defined benefit plans

Currency translation differences

Currency translation differences

Hedge reserve

Gain on

financial assets measured at fair value

Restricted profit reserves

Retained earnings

Net profit/(loss) for the

year

Shareholders' equity

As at 1 January 2024

TL

102.299.707

455.687.025

(105.998.793)

27.604.819.459

368.154.236

(129.997.940)

48.328.332

20.459.941

5.397.932.457

20.907.501.797

54.669.186.221

Transfers

TL

397.700.293

(397.700.293)

-

-

-

-

-

-

20.907.501.797

(20.907.501.797)

-

Net profit/(loss) for the period

TL

-

-

-

-

-

-

-

-

-

11.320.281.004

11.320.281.004

Other comprehensive income / (expense)

TL

-

-

(47.340.993)

9.561.588.697

85.345.902

(248.865.307)

46.925.577

-

-

-

9.397.653.876

As at 30 September 2024

TL

500.000.000

57.986.732

(153.339.786)

37.166.408.156

453.500.138

(378.863.247)

95.253.909

20.459.941

26.305.434.254

11.320.281.004

75.387.121.101

As at 1 January 2025

TL

500.000.000

57.986.732

(156.636.746)

34.562.833.340

414.885.536

(138.062.439)

66.754.501

20.459.941

26.305.434.254

13.285.437.677

74.919.092.796

Transfers

TL

-

-

-

-

-

-

-

-

13.285.437.677

(13.285.437.677)

-

Net profit/(loss) for the period

TL

-

-

-

-

-

-

-

-

-

13.326.667.532

13.326.667.532

Other comprehensive income / (expense)

TL

-

-

(55.691.732)

24.729.867.692

157.051.978

(348.571.456)

(30.740.315)

-

-

-

24.451.916.167

As at 30 September 2025

TL

500.000.000

57.986.732

(212.328.478)

59.292.701.032

571.937.514

(486.633.895)

36.014.186

20.459.941

39.590.871.931

13.326.667.532

112.697.676.495

Within the registered capital ceiling of TL 500.000.000, the Company's issued capital amounting to TL 102.299.707 was increased by TL 397.700.293 to TL 500.000.000, 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.

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

Current Period

Prior Period

(*)

(*)

(Not Reviewed) TL (Not

Reviewed) TL

EUR

EUR

1 January-

1 January-

1 January-

1 January-

Notes 30 September 2025 30 September 2024 30 September 2025 30 September 2024

A. CASH FLOWS FROM OPERATING ACTIVITIES

Income/(loss) for the period

13.326.667.532

11.320.281.004

286.453.960

310.221.127

Adjustments to reconcile the income/(loss)

Depreciation and amortization

8-9-10

13.250.330.204

8.736.670.720

306.698.333

249.382.550

Adjustments related with impairments

(54.317.310)

235.554.054

(1.096.926)

6.152.882

Provision for doubtful receivable

7.571.259

(2.628.265)

175.248

(75.022)

Adjustments related with financial investment impairments

(61.888.569)

238.182.319

(1.272.174)

6.227.904

Adjustments related with provisions

1.476.576.283

1.695.916.410

34.177.524

44.648.484

Provision for employee benefits

1.352.385.903

1.677.961.011

31.302.955

44.135.962

Legal provision

124.190.380

17.955.399

2.874.569

512.522

Interest and commission income

3.798.118.365

4.554.431.360

90.544.559

131.759.953

Adjustments related with fair value expense (income)

40.987.100

(62.567.470)

842.526

(1.645.733)

Adjustments related with fair value expense (income)

of financial assets

40.987.100

(62.567.470)

842.526

(1.645.733)

Gain on equity investments accounted for

using the equity method

3

(103.196.017)

(63.505.152)

(2.388.623)

(1.812.701)

Current tax (income)/expense

2.496.053.897

427.880.382

57.774.828

12.213.485

Adjustments for (income)/expense caused by sale or

changes in share of joint ventures

(60.566.036)

-

(1.138.222)

-

Other provisions related with investing or financing activities

9.430.679.920

(553.301.076)

(38.455.949)

(15.525.840)

Changes in working capital

Increase in trade receivables

(802.922.401)

(1.034.243.835)

(18.584.817)

(29.521.619)

Increase in other receivables, prepayments

and other assets

(2.144.514.303)

(2.782.856.518)

(49.637.930)

(108.382.776)

Increase in inventories

(111.458.479)

(142.435.696)

(2.579.870)

(4.065.707)

Increase in trade payables

3.647.698.883

1.980.126.199

84.431.342

56.521.035

Increase in deferred income, other payables and other current liabilities

(1.024.860.995)

3.433.320.109

(24.232.806)

118.271.390

Net cash generated from operating activities

43.165.276.643

27.745.270.491

722.807.929

768.216.530

Payment for the employee benefits provisions

(3.136.868.689)

(965.038.610)

(71.808.504)

(27.642.310)

Payment for other provisions

(74.055.332)

(972.063)

(1.714.119)

(27.747)

39.954.352.622

26.779.259.818

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

(5.230.899.211)

29.156.667

(128.582.462)

(2.624.554)

Net cash changes from purchase and

sale of property, equipment and intangible assets

(2.699.485.125)

2.395.415.979

(58.110.216)

63.582.380

Interest received from financial investment

1.818.715.735

1.130.504.263

46.097.030

33.062.751

Changes in cash advances and payables

(8.320.188.572)

(4.960.155.514)

(192.582.971)

(141.583.462)

Other cash changes (**)

(37.426.287)

8.816.135.307

(866.286)

273.013.992

(14.469.283.460)

7.411.056.702

(334.044.905)

225.451.107

C. CASH FLOWS FROM FINANCING ACTIVITIES

Increase in borrowings

13.977.739.038

20.693.628.024

296.200.607

556.110.541

Repayment of borrowings

(13.702.278.235)

(12.903.714.346)

(291.917.043)

(346.613.064)

Repayment of principal in lease liabilities

(12.829.231.537)

(8.997.070.693)

(296.951.385)

(256.813.807)

Interest and commission paid

(6.253.201.750)

(6.696.404.551)

(186.908.778)

(196.293.675)

Interest received

2.067.172.493

1.252.455.957

47.847.740

36.443.069

(16.739.799.991)

(6.651.105.609)

(431.728.859)

(207.166.936)

NET DECREASE IN CASH AND CASH EQUIVALENTS

BEFORE TRANSLATION EFFECT (A+B+C)

8.745.269.171

27.539.210.911

(116.488.458)

758.830.644

D. TRANSLATION DIFFERENCES EFFECT ON CASH AND CASH EQUIVALENTS

(4.570.146.258)

3.423.041.176

(105.782.738)

(15.102.303)

NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D)

4.175.122.913

30.962.252.087

(222.271.196)

743.728.341

E. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD

AT THE BEGINNING OF THE PERIOD

27

46.258.554.416

16.078.358.927

1.258.979.406

493.596.374

AT THE END OF THE PERIOD (A+B+C+D+E)

27

50.433.677.329

47.040.611.014

1.036.708.210

1.237.324.715

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

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

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 Kurtkoy-Pendik İstanbul.

Approval of Financial Statements

The interim condensed consolidated financial statements of the Company and its subsidiaries for the nine month 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 2.1 Basis of Presentation Statement of Compliance with TAS

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

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

The interim condensed consolidated financial statements for the six month ended 30 September 2025 have been prepared in accordance with TAS 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2024.

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

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

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

Functional and Presentation Currency

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

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

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

  • Monetary assets and liabilities have been converted to the functional currency with the Central Bank of Turkish Republic (CBRT) foreign exchange rate.

  • Non-monetary items have been converted into the functional currency at the exchange rates prevailing at the transaction date.

  • Profit or loss accounts have been converted into the functional currency using the exchange rates at the transaction date, except for depreciation expenses.

  • The capital is followed according to historical costs.

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

    Presentation currency of the Group's financial statements is TL. Financial Statements have been translated from Euro to TL in accordance with the relevant provisions of TAS 21 ("The Effects of Changes in Foreign Exchange Rates") as follows:

    • Assets and liabilities are translated using the Central Bank of the Republic of Türkiye ("TCMB")

      Euro rate prevailing at the reporting date,

    • Incomes are converted from Euros to TL using the monthly average exchange rates and expense items at the registered exchange rates on the relevant transaction date.

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

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)
  1. Basis of Presentation (cont'd)
Financial Reporting in Hyperinflationary Economies

In accordance with the POA's announcement dated 23 November 2023, companies applying Turkish Financial Reporting Standards are required to present their financial statements for the annual reporting periods ending on or after 31 December 2024, adjusted for the effects of inflation in accordance with the relevant accounting principles in Turkish Accounting Standard 29 "Financial Reporting in Hyperinflationary Economies" (TAS 29). Since the Company's functional currency is Euro as of the reporting date, there is no need to make any adjustments within the scope of TAS 29 in its financial statements to be prepared in accordance with TFRS. However, the financial statements as of 31 December 2024 and 30 September 2025 are prepared in accordance with the Tax Law, have been subject to inflation correction in accordance with the legislation.

Euro Amounts in the Consolidated Financial Statements

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

Comparative Information and Reclassification of Prior Period Financial Statements

Condensed consolidated financial statements of the Group are prepared in comparison to prior period in order to identify financial position and performance trends. In order to maintain consistency with current period condensed consolidated financial statements, comparative information is reclassified and material changes are disclosed if necessary. The Group has not made any reclassification in the prior period consolidated financial statements in order to maintain consistency with current period condensed 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 September 2025 and 31 December 2024:

Ownership rate Country of registration and

Name of the Company Pegasus Havacılık Teknolojileri ve

Ticaret A.Ş.

Principal activity Simulator technical support and

maintenance

30 September 2025

100%

31 December 2024

100%

operation

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.

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)
  1. Basis of Presentation (cont'd) Basis of Consolidation

    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

    30 September 31 December Ownership registration and

    Name of the Company Principal activity

    Pegasus Uçuş Eğitim

    2025

    2024

    type

    operation

    Merkezi A.Ş. ("PUEM")

    (**)

    Hitit Bilgisayar

    Simulator

    training - 49,40%

    Information

    system solutions 36,20% 36,82%

    Joint

    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.

  2. 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.

  3. New and Amended Turkish Financial Reporting Standards

  1. Amendments that are mandatorily effective from 2025

    Amendments to TAS 21 Lack of Exchangeability

    Amendments to TAS 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)

  2. New and revised TFRSs in issue but not yet effective

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

TFRS 17 Insurance Contracts

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

Comparative Information

TFRS 18 Presentation and Disclosures in Financial Statements

Amendments TFRS 9 and TFRS 7 Classification and measurement of financial instruments Amendments TFRS 9 and TFRS 7 Power purchase arrangements

TFRS 19 Subsidiaries without Public Accountability: Disclosures

Annual Improvements Annual Improvements to TFRS Accounting Standards -

Volume 11

TFRS 17 Insurance Contracts

TFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts. TFRS 17 has been deferred for insurance, reinsurance and pension companies for a further year and will replace TFRS 4 Insurance Contracts on 1 January 2026.

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

Comparative Information

Amendments have been made in TFRS 17 in order to reduce the implementation costs, to explain the results and to facilitate the initial application.

The amendment permits entities that first apply TFRS 17 and TFRS 9 at the same time to present comparative information about a financial asset as if the classification and measurement requirements of TFRS 9 had been applied to that financial asset before. Amendments are effective with the first application of TFRS 17.

TFRS 18 Presentation and Disclosures in Financial Statements

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

Amendments TFRS 9 and TFRS 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 TFRS 9 Financial Instruments. Amendments are effective from annual reporting periods beginning on or after 1 January 2026.

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd) Amendments TFRS 9 and TFRS 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. Amendments are effective from annual reporting periods beginning on or after 1 January 2026.

TFRS 19 Subsidiaries without Public Accountability: Disclosures

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

Annual Improvements to TFRS Accounting Standards - Volume 11

The pronoun

ncement comprises the following amendments:

  • TFRS 1: Hedge accounting by a first-time adopter

  • TFRS 7: Gain or loss on derecognition

  • TFRS 7: Disclosure of deferred difference between fair value and transaction price

  • TFRS 7: Introduction and credit risk disclosures

  • TFRS 9: Lessee derecognition of lease liabilities

  • TFRS 9: Transaction price

  • TFRS 10: Determination of a 'de facto agent'

  • TAS 7: Cost method

Annual reporting periods beginning on or after 1 January 2026.

  1. 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 September 2025 compared to last year-end.

  2. 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

1.007.968.150

775.860.767

1.007.968.150

775.860.767

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

103.196.017

67.621.456

40.717.817

23.933.428

PUEM

-

(4.116.304)

-

(2.637.792)

Net profit

103.196.017

63.505.152

40.717.817

21.295.636

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

1.034.953.165

903.513.291

Non-current assets

2.390.751.566

1.712.410.293

Current liabilities

(439.094.778)

(381.450.727)

Non-current liabilities

(216.105.896)

(138.932.230)

Net assets of joint venture

2.770.504.057

2.095.540.627

Group's ownership interest in the joint venture

36,20%

36,82%

Goodwill

5.045.681

4.282.708

Group's share in the net assets of the joint venture

1.007.968.150

775.860.767

1 January-

30 September 2025

1 January-

30 September 2024

Revenue

1.203.814.369

781.679.080

Depreciation and amortisation expense

(245.559.570)

(143.351.988)

Interest income/(expense), net

136.640.375

25.551.414

Profit for the year

280.271.637

183.654.144

Group's weighted average ownership interest

36,82%

36,82%

Group's share in the net profit of the joint venture

103.196.017

67.621.456

NOTE 4 - SEGMENT REPORTING

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

NOTE 5 - RELATED PARTY TRANSACTIONS

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

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

30 September 2025

31 December 2024

Balances with joint ventures:

Hitit Bilgisayar

52.082.230

39.628.684

Balances with other related parties:

Esasburda İnşaat Sanayi ve Ticaret A.Ş. ("Esasburda")

300.664

947.033

Ere Avm İnşaat A.Ş. ("Ere Avm")

6.120.000

3.315.000

58.502.894

43.890.717

(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.

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

1 January- 1 January- 1 July - 1 July -

30 September 2025 30 September 2024 30 September 2025 30 September 2024

Transactions with joint ventures:

Hitit Bilgisayar

286.186.100

189.204.694

108.119.616

71.120.418

Transactions with other related parties:

Ere Avm

48.000.000

-

12.000.000

-

Esasburda

4.001.504

17.427.086

-

6.775.470

Alarm Sağlık

-

800.000

-

200.000

Other

90.000

8.927

90.000

-

338.277.604

207.440.707

120.209.616

78.095.888

b) Lease expenses

1 January-

1 January-

1 July -

1 July -

30 September 2025

30 September 2024

30 September 2025

30 September 2024

Esasburda (*)

-

10.690.698

-

-

-

10.690.698

-

-

(*) Lease expenses are recorded as depreciation and interest under TFRS 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.

(iii) Compensation of Key Management Personnel:

Key management personnel include members of the board of directors, general managers and assistant general managers. The remuneration of key management 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

614.352.944

159.805.851

224.911.330

16.761.025

614.352.944

159.805.851

224.911.330

16.761.025

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

2.577.223.178

1.525.875.736

Credit card receivables

2.007.418.628

1.198.921.535

Income accruals

75.688.974

121.627.213

4.660.330.780

2.846.424.484

Allowance for credit risk adjustment under TFRS 9

(190.693.224)

(147.007.101)

4.469.637.556

2.699.417.383

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

3.910.944.519

4.869.502.621

Accrued direct operational costs

10.654.377.723

3.029.471.251

Trade payables to related parties (Note 5)

58.502.894

43.890.717

14.623.825.136

7.942.864.589

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 follows:

30 September 2025 and 31

December 2024 are as

30 September 2025

31 December 2024

Deposits and guarantees given (*)

311.616.648

52.004.903

Receivables from pilots for flight training

266.051.901

10.457.594

Receivables from tax office

35.365.592

26.611.446

Other receivables

117.571.210

17.200.928

730.605.351

106.274.871

(*) The amount of TL 239.824.416 in deposits

given, consists of guarantees

given from 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

1.918.211.985

1.570.320.465

Deposits given

1.937.724.043

1.549.560.730

3.855.936.028

3.119.881.195

Short term other payables

30 September 2025

31 December 2024

Taxes payables

633.361.474

373.700.528

Deposits received

395.536.649

86.305.522

1.028.898.123

460.006.050

NOTE 7 - PREPAYMENTS, DEFERRED INCOME AND PASSENGER FLIGHT 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

3.432.191.041

4.514.154.692

Advances to suppliers

4.241.993.414

1.882.368.567

Prepaid insurance expenses

224.000.428

661.458.633

Other prepaid expenses

331.978.106

360.303.872

8.230.162.989

7.418.285.764

Long term prepayments

30 September 2025

31 December 2024

Advances on aircraft purchases

6.712.049.246

2.102.247.620

Prepaid maintenance expenses

27.204.265.266

16.007.193.652

Other prepaid expenses

593.212

9.068.767

33.916.907.724

18.118.510.039

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

9.459.794.183

8.044.008.774

Passenger airport fees received from customers (*)

3.586.156.155

2.688.310.065

Flight liability from flight points

2.103.776.707

1.537.667.174

15.149.727.045

12.269.986.013

(*) 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

1.954.601.522

1.010.942.220

Other deferred income

1.601.790.303

459.381.249

3.556.391.825

1.470.323.469

Long term deferred income

30 September 2025

31 December 2024

Deferred income (**)

9.793.560.551

7.457.506.238

9.793.560.551

7.457.506.238

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

NOTE 8 - PROPERTY AND EQUIPMENT Components,

30 September 2025

Machinery

and equipment

Motor

vehicles

Furniture and

fixtures

Leasehold

improvements

spare engine

and repairables

Owned

Aircraft

Construction

in progress

Total

Cost:

Opening

1.303.701.112

1.010.293.292

1.512.661.810

507.848.125

13.723.562.101

10.513.994.905

346.274.429

28.918.335.774

Additions

42.990.793

102.655.382

194.532.475

231.553

2.968.143.996

15.654.803

1.502.025.688

4.826.234.690

Transfers (*)

-

-

-

-

(958.680.262)

-

-

(958.680.262)

Currency translation differences

427.827.821

340.280.637

514.631.141

164.576.126

4.699.512.374

3.408.593.237

301.491.559

9.856.912.895

Closing

1.774.519.726

1.453.229.311

2.221.825.426

672.655.804

20.432.538.209

13.938.242.945

2.149.791.676

42.642.803.097

Accumulated depreciation:

Opening

(554.684.002)

(373.011.823)

(1.082.433.842)

(490.834.178)

(3.761.138.727)

(5.351.401.297)

-

(11.613.503.869)

Depreciation for the year

(75.847.409)

(92.252.645)

(102.444.393)

(3.282.911)

(939.919.844)

(452.312.021)

-

(1.666.059.223)

Currency translation differences

(189.280.974)

(132.485.206)

(363.628.175)

(159.448.022)

(1.337.094.989)

(1.790.901.305)

-

(3.972.838.671)

Closing

(819.812.385)

(597.749.674)

(1.548.506.410)

(653.565.111)

(6.038.153.560)

(7.594.614.623)

-

(17.252.401.763)

Net book value

954.707.341

855.479.637

673.319.016

19.090.693

14.394.384.649

6.343.628.322

2.149.791.676

25.390.401.334

(*) 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) Components,

30 September 2024

Machinery

and equipment

Motor

vehicles

Furniture and

fixtures

Leasehold

improvements

spare engine

and repairables

Owned

Aircraft

Construction

in progress

Total

Cost:

Opening

1.103.684.197

717.367.948

1.176.005.452

438.645.278

6.680.691.335

8.978.203.654

262.907.397

19.357.505.261

Additions

38.699.974

89.526.158

158.560.437

3.359.287

5.654.142.218

204.872.629

17.952.990

6.167.113.693

Transfers (*)

-

-

-

-

(1.112.817.952)

-

-

(1.112.817.952)

Currency translation differences

187.756.476

127.521.130

210.054.709

73.597.294

1.503.811.509

1.517.987.285

45.469.355

3.666.197.758

Closing

1.330.140.647

934.415.236

1.544.620.598

515.601.859

12.725.827.110

10.701.063.568

326.329.742

28.077.998.760

Accumulated depreciation:

Opening

(419.628.926)

(288.077.159)

(866.899.542)

(432.379.083)

(2.658.594.566)

(4.314.225.458)

-

(8.979.804.734)

Depreciation for the year

(57.562.077)

(51.174.586)

(74.829.730)

(2.327.507)

(534.361.709)

(340.858.481)

-

(1.061.114.090)

Currency translation differences

(75.036.710)

(52.506.204)

(151.260.441)

(72.462.120)

(489.856.111)

(750.078.038)

-

(1.591.199.624)

Closing

(552.227.713)

(391.757.949)

(1.092.989.713)

(507.168.710)

(3.682.812.386)

(5.405.161.977)

-

(11.632.118.448)

Net book value

777.912.934

542.657.287

451.630.885

8.433.149

9.043.014.724

5.295.901.591

326.329.742

16.445.880.312

(*) 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

2.361.587.141

1.714.023.225

Additions

642.679.030

261.015.687

Currency translation differences

846.168.461

308.702.348

Closing

3.850.434.632

2.283.741.260

Accumulated amortization:

Opening

(1.478.044.624)

(1.070.519.120)

Amortization for the year

(303.231.331)

(192.140.858)

Currency translation differences

(517.113.881)

(195.285.461)

Closing

(2.298.389.836)

(1.457.945.439)

Net book value

1.552.044.796

825.795.821

NOTE 10 - RIGHT OF USE ASSETS

30 September 2025

Field Rental

Building

Aircraft

Other

Total

Cost:

Opening

535.372.779

908.784.706

191.782.214.946

11.440.385

193.237.812.816

Additions

457.157.455

-

21.981.026.651

-

22.438.184.106

Disposals (*)

-

-

(3.199.291.013)

-

(3.199.291.013)

Currency translation differences

231.079.346

294.453.675

64.506.011.692

3.706.778

65.035.251.491

Closing

1.223.609.580

1.203.238.381

275.069.962.276

15.147.163

277.511.957.400

Accumulated depreciation:

Opening

(490.171.366)

(14.554.598)

(39.422.098.177)

(11.440.385)

(39.938.264.526)

Depreciation for the period

(98.718.348)

(20.035.671)

(11.162.285.631)

-

(11.281.039.650)

Disposals (*)

-

-

1.177.537.848

-

1.177.537.848

Currency translation differences

(171.260.709)

(7.240.844)

(14.053.132.720)

(3.706.778)

(14.235.341.051)

Closing

(760.150.423)

(41.831.113)

(63.459.978.680)

(15.147.163)

(64.277.107.379)

Net book value

463.459.157

1.161.407.268

211.609.983.596

-

213.234.850.021

(*) Aircraft which are sold presented as disposals.

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

30 September 2024

Field Rental

Building

Aircraft

Other

Total

Cost:

Opening

474.627.190

253.614.344

148.302.857.702

10.142.312

149.041.241.548

Additions

-

843.129.828

25.340.812.413

-

26.183.942.241

Disposals (*)

-

(272.763.854)

(14.494.018.343)

-

(14.766.782.197)

Currency translation differences

79.324.793

90.977.256

25.709.630.048

1.695.092

25.881.627.189

Closing

553.951.983

914.957.574

184.859.281.820

11.837.404

186.340.028.781

Accumulated depreciation:

Opening

(367.824.706)

(161.309.673)

(34.992.941.609)

(10.142.312)

(35.532.218.300)

Depreciation for the period

(82.804.622)

(25.959.613)

(7.374.651.537)

-

(7.483.415.772)

Disposals (*)

-

226.004.336

9.567.814.172

-

9.793.818.508

Transfers

35.094.536

(35.094.536)

-

-

-

Currency translation differences

(65.539.324)

(12.907.402)

(5.503.055.423)

(1.695.092)

(5.583.197.241)

Closing

(481.074.116)

(9.266.888)

(38.302.834.397)

(11.837.404)

(38.805.012.805)

Net book value

72.877.867

905.690.686

146.556.447.423

-

147.535.015.976

(*) 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 amount of claims, excluding reserved rights for excess claims, litigation risks, and interest, is TL 227.143.336 as of 30 September 2025 (31 December 2024: TL 187.141.480). These lawsuits and fines have been evaluated by the Group's management and a litigation provision of TL 107.342.127 (31 December 2024: TL 57.207.079) has been provided against claims for which management believes it is probable it will be required to make a payment. Disputes arise from guest complaints, claims by former employees of the Group and a limited number of commercial disputes.

Tax Inspection

The 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 TL 1.780.660 of tax assessment has been declared to the Company. Against this tax assessment, the Company filed a tax lawsuit on September 6, 2021, the petition of the counter party was received on October 25, 2021 and the petition was answered on November 23, 2021. The 7th Tax Court of Istanbul decided to accept our case and reject all assessments on June 29, 2022, and the defendant Revenue Administration objected to the decision in August and submitted the petition of appeal to the Tax Court. The petition of appeal was notified to Company on September 28, 2022 and this petition answered within one month. Following the rejection of the opposite party's appeal, this time an appeal was made, and the defendant's appeal was served in April 2023. This petition was also answered by the Company within the time limit. The said lawsuit continues as of 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.

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

Passenger Service Fee

T&T Havalimanı İşletmeciliği İnşaat Sanayi ve Ticaret Şirketi Limited filed three lawsuits against the Company before North Cyprus Lefkoşa Court of First Instance with claims of Euro 765.689, Euro 988.985 and Euro 475.031, respectively. All three lawsuits act on same claims and the airports act no. 5/2013 whereby the plaintiff, as the operator of the Ercan Airport under North Cyprus Airports Services and Charges Law, claims Euro 15 passenger service fee for each Turkish Army Staff member traveling on the Company flights for the period between March 2013 and August 2020. Turkish Army Staff departing from North Cyprus are subject to an exemption from this fee under the law. The plaintiff's argument is based on the assumption that the Company has not carried any Turkish Army Staff members in this period of time. The Court of First Instance merged the first two lawsuits and rendered a judgment against the Company for a total principal payment obligation of Euro 1.679.114. 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 Euro 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 1.203.303.036.588 1.071.592.413.029

1.203.303.036.588 1.071.592.413.029

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 TL 10.144.240.287 (31 December 2024: TL 6.616.402.312). Of this amount, TL 3.432.191.041 is reclassified as short-term, and TL 6.712.049.246 is reclassified as long-term prepayments (31 December 2024: TL 4.514.154.692 is reclassified as short-term, TL 2.102.247.620 is reclassified as long-term prepayments).

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

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

30 September 2025

TL TOTAL

USD

EUR

TL

Other

A. Total amounts of CPM given on behalf of its own legal entity

-Collateral

2.457.646.658

22.456.235

27.177.460

27.307.070

176.315.409

-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

  1. Total amount of CPM given on behalf of the Parent

    -Collateral

    -

    -

    -

    -

    -

    -Pledge

    -

    -

    -

    -

    -

    -Mortgage

    -

    -

    -

    -

    -

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

-Collateral

-

-

-

-

-

-Pledge

-

-

-

-

-

-Mortgage

-

-

-

-

-

iii. Total amount of CPM given on behalf of third parties not covered in C

-Collateral

-

-

-

-

-

-Pledge

-

-

-

-

-

-Mortgage

-

-

-

-

-

2.457.646.658

22.456.235

27.177.460

27.307.070

176.315.409

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

TL TOTAL

USD

EUR

TL

Other

A. Total amounts of CPM given on behalf of its own legal entity

-Collateral

1.391.002.578

19.818.530

12.544.285

109.847.593

122.167.548

-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

  1. Total amount of CPM given on behalf of the Parent

    -Collateral

    -

    -

    -

    -

    -

    -Pledge

    -

    -

    -

    -

    -

    -Mortgage

    -

    -

    -

    -

    -

  2. 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

-

-

-

-

-

1.391.002.578

19.818.530

12.544.285

109.847.593

122.167.548

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

28.943.848.163

23.607.205.744

12.002.383.249

8.972.676.157

Personnel expenses

20.363.098.757

12.635.792.723

7.835.297.043

5.967.672.775

Depreciation and amortisation expenses

13.250.330.204

8.736.728.145

5.131.791.667

3.152.138.681

Handling and station fees

8.476.998.263

5.758.693.505

3.530.746.357

2.350.562.224

Navigation expenses

7.754.274.626

4.738.135.246

3.242.376.047

1.931.532.634

Maintenance expenses

3.976.520.718

2.839.924.626

1.531.339.155

1.050.411.307

Landing expenses

4.121.579.582

2.696.504.125

1.673.519.610

1.096.043.018

Passenger service and catering expenses

1.445.566.881

991.501.322

577.164.669

472.818.930

Advertising expenses

834.290.252

475.939.556

324.874.642

135.222.781

Commission expenses

785.215.313

673.464.107

307.695.100

335.157.361

Short term operational lease expenses

898.236.545

40.657.687

753.927.292

692.488

Other expenses

6.559.286.873

4.293.259.552

2.338.027.325

1.733.160.695

97.409.246.177

67.487.806.338

39.249.142.156

27.198.089.051

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

(%)

TL

(%)

TL

Esas Holding

52,81

264.056.018

52,81

264.056.018

Publicly held

45,37

226.866.830

45,37

226.866.830

Emine Kamışlı

0,61

3.025.717

0,61

3.025.717

Ali İsmail Sabancı

0,61

3.025.717

0,61

3.025.717

Kazım Köseoğlu

0,30

1.512.859

0,30

1.512.859

Can Köseoğlu

0,30

1.512.859

0,30

1.512.859

TL historic capital

100,00

500.000.000

100,00

500.000.000

The Company's share capital consists of 500.000.000 shares of par value TL 1 each (31 December 2024: 500.000.000 shares).

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

112.675.293.599

82.465.679.803

51.561.078.742

39.285.260.518

International flight revenue

56.041.103.282

44.015.367.822

27.074.772.122

22.278.905.246

Domestic flight revenue

15.480.930.577

10.993.548.833

7.224.041.125

5.323.488.279

Service revenue

41.153.259.740

27.456.763.148

17.262.265.495

11.682.866.993

Charter flight and service revenue

1.407.682.990

1.298.282.396

759.329.800

687.775.044

Charter flight revenue

1.407.682.990

1.298.282.396

759.329.800

687.775.044

Other revenue 322.118.306

282.425.529

71.616.300

109.416.871

114.405.094.895

84.046.387.728

52.392.024.842

40.082.452.433

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

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

1 January-

30 September 2025

1 January-

30 September 2024

1 July -

30 September 2025

1 July -

30 September 2024

Europe

43.861.016.937

33.564.931.888

22.498.538.796

17.971.919.518

Domestic

15.480.930.577

10.993.548.833

7.224.041.125

5.323.488.279

Other

12.180.086.345

10.450.435.934

4.576.233.326

4.306.985.728

71.522.033.859

55.008.916.655

34.298.813.247

27.602.393.525

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

28.943.848.163

23.607.205.744

12.002.383.249

8.972.676.157

Personnel expenses

18.835.866.350

11.688.108.269

7.247.649.765

5.520.097.317

Depreciation and amortisation expenses

12.652.936.942

8.350.345.270

4.902.838.210

3.010.866.564

Handling and station fees

8.476.998.263

5.758.693.505

3.530.746.357

2.350.562.224

Navigation expenses

7.754.274.626

4.738.135.246

3.242.376.047

1.931.532.634

Maintenance expenses

3.976.520.718

2.839.924.626

1.531.339.155

1.050.411.307

Landing expenses

4.121.579.582

2.696.504.125

1.673.519.610

1.096.043.018

Passenger service and catering expenses

1.445.566.881

991.501.322

577.164.669

472.818.930

Insurance expenses

548.351.488

464.024.453

182.141.569

151.814.697

Short term lease expenses

898.236.545

40.657.687

818.866.458

692.488

Other expenses

4.133.208.098

2.598.778.212

1.283.326.703

1.104.227.608

91.787.387.656

63.773.878.459

36.992.351.792

25.661.742.944

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

3.194.740.789

2.005.770.628

1.334.361.184

841.595.866

Marketing expenses

2.427.117.732

1.708.157.251

922.429.180

694.750.241

5.621.858.521

3.713.927.879

2.256.790.364

1.536.346.107

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-

1 January-

1 July -

1 July -

30 September 2025

30 September 2024

30 September 2025

30 September 2024

Personnel expenses

1.119.970.432

694.968.600

430.941.337

328.222.003

IT expenses

801.470.771

511.399.837

316.602.369

199.289.267

Depreciation and amortisation expenses

477.914.610

309.106.300

183.162.766

113.017.694

Consultancy expenses

220.189.738

146.720.131

90.681.150

53.905.660

Office utility expenses

75.269.669

55.523.255

27.250.507

21.732.786

Legal and notary expenses

204.937.516

76.884.783

145.060.876

46.158.649

Communication expenses

66.915.985

67.875.295

34.959.180

22.895.072

Travel expenses

126.902.175

88.507.486

77.024.877

47.708.362

Training expenses

13.524.545

7.636.171

4.686.866

5.038.692

Other expenses

87.645.348

47.148.770

23.991.256

3.627.681

3.194.740.789

2.005.770.628

1.334.361.184

841.595.866

Marketing expenses:

1 January-

1 January-

1 July -

1 July -

30 September 2025

30 September 2024

30 September 2025

30 September 2024

Advertising expenses

834.290.252

475.939.556

324.874.642

135.222.781

Commission expenses

785.215.313

673.464.107

307.695.100

335.157.361

Personnel expenses

407.261.975

252.715.854

156.705.941

119.353.455

Call center expenses

194.650.004

156.985.783

58.603.609

51.810.508

Depreciation and amortisation expenses

119.478.652

77.276.575

45.790.691

28.254.423

Other expenses

86.221.536

71.775.376

28.759.197

24.951.713

2.427.117.732

1.708.157.251

922.429.180

694.750.241